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Resouro Strategic Metals Inc. (ASX:RAU) (CVE:RSM) Partners with the MagBras Initiative in Brazil
About MagBras
The MagBras Initiative is a pioneering project dedicated to producing rare earth permanent magnets entirely within Brazil. Led by SENAI MG, SENAI SC, and the Rede de Institutos SENAI de Inovacao, a Brazilian network of industrial training and innovation institutions, the initiative aims to reduce reliance on imports, promote local innovation, and serve as a scalable model for domestic and international production. This could position Brazil as a fully integrated and sustainable rare earth products supply chain and global force in critical minerals production.
The MagBras Initiative, supported by the 'Call for Structural Project Actions' between Fundep and SENAI, is a competitive program designed to finance transformational projects in Brazil. The MagBras Project has been successfully accepted for comprehensive funding from Minas Gerais State Agencies, enabling the full realization of the initiative's objectives.
The MagBras Group is a strong collaboration between companies such as Stellantis, Iveco, Schulz, Vale, Mosaic and Weg amongst others.
Importantly, Stellantis leads one of the groups as the main anchor directly connected with Resouro's producer slot. Stellantis are an American-French-Italian automotive conglomerate who manufactures global car brands such as Abarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, RAM and Vauxhall.
Project Selection
The project selection process assessed each submission based on technical and financial merits, as well as its qualification as a structuring project for the Rare Earth Elements ("REE") value chain, amongst other innovative projects related with sustainability and new technologies.
The MagBras Initiative proposal was submitted in late 2024 and has now been successfully accepted for funding. With this approval, the cooperation agreement (a long form contract), is expected to be signed by all parties in early 2025. This selection process ensures that only highimpact and high-value projects are selected for funding, reinforcing the importance of such initiatives in advancing the REE supply chain.
Resouro's Commitment
As one of the key producing collaborators, Resouro will contribute to the MagBras Initiative its expertise, cash consideration and "in-kind" support, including REE product samples and strategic insights. Resouro has pledged to contribute a total of US$35,000 (BRL 200,000) in four (4) tranches in May, July, September and November 2025. By working closely with the MagBras technical team, Resouro will play a relevant role in advancing the Magbras Project's vision of a vibrant, competitive and domestic end-to-end production cycle.
Addressing Strategic Challenges
The MagBras Project addresses Brazil's over-reliance on imported rare earth magnets, predominantly sourced from China, which controls over 95% of the global market. Recent geopolitical changes underscore the urgency of developing localized, diversified supply chains.
The MagBras Project underpins the need to develop a diverse, independent and sustainable supply chain.
Brazil has 17% of the world's REE reserves and ranks third globally trailing only China (40%) and Vietnam (18%). Despite this natural wealth, the country lacks domestic production and manufacturing. The MagBras Initiative, in collaboration with Resouro and other market peers, aims to close this gap by creating an expanding industrial sector that spans the entire value chain, with transparency of governance from mining to manufacturing end products, such as permanent magnets.
Key Highlights of the MagBras Project
Brazil's current demand for permanent magnets is estimated at 6,000 to 10,000 tonnes annually, driven by industries such as automotive manufacturing, wind energy, and home appliances.
Demand is projected to increase substantially over the next decade, driven by the adoption of wind turbines, expansion in the automotive manufacturing sector, and strong domestic market growth.
- Integrated Supply Chain: The Magbras Project will develop a demonstrator facility capable of producing 100 tonnes of permanent magnets annually, serving as a scalable model for industrial production.
- Collaborative Network: MagBras brings together SENAI MG, SENAI SC, the Rede de Institutos SENAI de Inovacao, and a consortium of 20 companies, including Resouro, alongside startups and automotive manufacturers.
- Funding and Timeline: With a proposed budget of EUR10 million (BRL60 million) and a three-year timeline, MagBras is poised to revolutionize Brazil's rare earth industry.
Resouro's Strategic Role and Benefits
Resouro's contributions to MagBras will be anchored by the Company's flagship Tiros Project, located in Minas Gerais. The Tiros Project resource contains 198 million tonnes of titanium dioxide (TiO2) and 6.6 million tonnes of total rare earths oxide (TREO) in 1.7 Billion tonnes of Mineral Resources (M+I+I). As Resouro strives to become a major supplier of rare earth materials, the MagBras Initiative will position Resouro as a key supplier for permanent magnet production while leveraging its expertise to enhance the Magbras Project's success.
The potential benefits for Resouro are substantial. By engaging in this project, Resouro will position itself as a key player in the REE value chain in Brazil. The project allows Resouro to showcase its potential to supply the REE supply chain while integrating into a collaborative network of 26 relevant organizations, including mining companies, off-takers and magnet and electric motor end-users. This engagement strategically positions Resouro to establish a strong presence in the REE market, leverage partnerships for future opportunities, and contribute to the vertical integration of this critical supply chain.
Commenting on Resouro's partnership with the MagBras Initiative, Philippe Martins, Resouro's Brazilian Executive Director, said:
"We are honored to play a key role in the MagBras Project, a transformative initiative spearheaded by SENAI MG, SENAI SC, and the Rede de Institutos SENAI de Inovacao. This paves the way for Resouro to participate in a sustainable and fully integrated rare earth supply chain that will solidify Brazil's position as a global leader in critical minerals. Moreover, it lays the foundation for Resouro to emerge as a prominent supplier in Brazil and a global force in the rare earths supply chain."
About Resouro Strategic Metals Inc.:
Resouro Strategic Metals Inc. (ASX:RAU) (CVE:RSM) (OTCMKTS:RSGOF) (FRA:8TX) is a Canadian-based mineral exploration and development company focused on the discovery and advancement of economic mineral projects in Brazil, including the rare earth elements and titanium Tiros Project and the Novo Mundo and Santa Angela gold projects.
The Tiros Project, located in northern Minas Gerais, Brazil, is an exploration project focused on rare earth elements and titanium covering an area of approximately 450 km2. The Tiros Project comprises 17 exploration permits, and one exploration permit application held by the Company's Brazilian subsidiary; and 6 exploration permits and one exploration permit application that have been validly assigned to the Company's Brazilian subsidiary and are awaiting ANM approval. The Company holds, via its wholly owned Brazilian subsidiary, a 90% interest in the Tiros Project and the remaining 10% interest in the Tiros Project is held by RBM Consultoria Mineral Eireli (RBM), an unrelated third-party vendor.
The Novo Mundo Project is located in the Alta Floresta Gold Province close to the northern border of the state of Mato Grosso, central Brazil. Within the licensed area is the small town of Novo Mundo, which is 30km west from the larger town of Guaranta do Norte. It comprises three exploration permits. The Company also has another interest in an exploration permit, being the Santa Angela Project, which is not considered material to the Company's operations. Interests in the Novo Mundo Project and Santa Angela Project are held via the Company's wholly owned subsidiary.
Contact:Chris Eager Executive Chair (Santiago) chris.eager@resouro.com +44 7388 0579809 Alistair Stephens Chief Executive Officer (Perth) alistair.stephens@resouro.com +614 88 99 2544 Melissa Hamilton Media (Sydney) melissa.hamilton@mcpartners.com.au +61 417 750 274
Source:
Resouro Strategic Metals Inc.
COMTEX_462845700/2525/2025-02-16T17:11:42