Verde Agritech Limited and Nautica Holdings Limited announce strategic transaction for high-grade magnetic rare earths exploration assets

Core Viewpoint - Verde Agritech Ltd and Nautica Holdings Limited have executed a Share Sale Agreement for the acquisition of high-grade magnetic rare earths exploration assets in Brazil, positioning Nautica as a significant player in the rare earths sector amid increasing global demand for critical minerals [1][2]. Transaction Overview - Nautica will acquire exploration assets from Verde's subsidiary, Oby Rare Earths Pty Ltd, which includes three primary targets with a maiden mineral resource estimate of 1.35 billion tons averaging 3,437 ppm Total Rare Earth Oxides (TREO) and 793 ppm Magnet Rare Earth Oxides (MREO) [6][7]. - The consideration for the assets involves the issuance of 2 billion shares in Nautica at $0.01 per share to Verde shareholders on the Record Date, resulting in a total of approximately 2.24 billion shares post-completion [6][7]. Strategic Rationale - The transaction aims to deliver long-term shareholder value for Verde's shareholders while aligning with Nautica's vision to secure rare earth minerals critical for technological advancements, including electric vehicles and renewable energy [8]. - Nautica's commitment of AUD $1 million for the project underscores confidence in the asset quality and potential economic value [10]. Strategic Next Steps - Following the acquisition, Nautica will prioritize preparations for an IPO on the Australian Securities Exchange (ASX) and evaluate alternative strategic options, including potential listings in New York or direct asset sales [9]. Leadership Structure and Corporate Governance - The leadership structure post-completion will include Cristiano Veloso as Managing Director of Nautica, with robust governance measures in place to address potential conflicts of interest [11][12].