Canamera Signs Letter of Intent to Potentially Acquire Option for Third Ionic Clay REE Project in Brazil

Core Viewpoint - Canamera Energy Metals Corp. has signed a non-binding letter of intent to acquire an option for a 100% interest in the Patos ionic clay rare earth element project in Brazil, which consists of eight exploration permits covering approximately 15,979 hectares [1][2]. Group 1: Acquisition Details - The acquisition is structured in two stages, starting with a low-cost auger drill program funded by the company for up to C$20,000 to conduct initial due diligence on the property [2]. - If the company decides to proceed after the initial due diligence, it will acquire the option to earn a 100% interest in the property, subject to a 2% net smelter return royalty and milestone payments [3][4]. - The company has the right to buy back 50% of the NSR for C$228,000 under certain conditions [3]. Group 2: Milestone Payments - Canamera has agreed to make milestone payments to the offeror, including C$342,000 if a 43-101-compliant inferred resource of 250 million tonnes or more is reported within five years [10]. - An additional milestone payment of C$228,000 is due if drill intercepts of 25 meters grading at least 2,500 ppm Total Rare Earth Oxides are reported within three years [10]. Group 3: Project Overview - The Patos Project is located in Presidente Olegário, Minas Gerais, Brazil, and is accessible by road, situated approximately 330 kilometers from Belo Horizonte [4]. - The property is underlain by the Patos Formation, which is being explored for ionic clay REE mineralization by other companies in the region, highlighting its potential for low-cost extraction methods [5]. Group 4: Company Background - Canamera Energy Metals Corp. focuses on critical and rare earth metals exploration, with a diversified portfolio of projects across the Americas, including several rare earth projects in North America and Brazil [9][11].