Axel REE Executes Protocol of Intent with Minas Gerais Government for Caladão ISR and Gallium Development

Aakashdeep

06 November 2026 11:23 AM AEDT

Axel REE Executes Protocol of Intent with Minas Gerais Government for Caladão ISR and Gallium Development

Image Source: Krish Capital Pty Ltd

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Axel REE Limited (ASX:AXL) and its Brazilian subsidiary Axel REE Ltda have executed a Protocol of Intent with the Government of the State of Minas Gerais, represented by the State Secretariat of Economic Development (SEDE) and Invest Minas, formalising state-level support for rare earth and gallium development at the 100%-owned Caladão Project in the municipality of Padre Paraíso, Minas Gerais.

Key Points

Protocol of Intent executed with SEDE and Invest Minas, formalising support for the Caladão Project's rare earth and gallium development
Two defined investment workstreams identified: ISR field validation testing of rare earth elements scheduled to commence in 2027, and continued gallium extraction and processing development
Invest Minas to support Axel through licensing, implementation and operation phases, including attracting and expanding regional suppliers
The Protocol is non-binding and does not commit any party to a minimum level of expenditure, nor does it constitute a permit, licence, approval or funding agreement

Protocol Terms and Scope at Caladão Project

The Protocol of Intent identifies two investment workstreams at the Caladão Project. The first is ISR field validation testing of rare earth elements, scheduled to commence in 2027. The second is the continued development of economically viable techniques for the extraction and processing of gallium. The filing states that prospective products include mixed rare earth carbonate or concentrate and gallium products, subject to the results of the research and pilot stages. The investment value is to be determined by Axel upon completion of the research and pilot stage, with the annual disbursement schedule to be defined based on the results of each stage.

Invest Minas Supply Chain and Implementation Support Role

Under the Protocol, Invest Minas intends to provide support and assistance to Axel during the implementation and operation phases of the Caladão Project, with the aim of attracting new suppliers to the region and expanding existing ones to service the project. The filing states this support is directed at building a regional supply base with the specialised equipment, services and contractor capability required for field-scale ISR and gallium activities. Invest Minas' services to investors also include assistance in obtaining the licences and authorisations required to develop Axel's projects in Minas Gerais.

Protocol Structure and Binding Effect

The parties to the Protocol are SEDE, Invest Minas, Axel REE Limited and Axel REE Ltda. The Protocol has no fixed term, and any party may terminate on 30 days' written notice. The filing states the Protocol does not constitute a binding contract or agreement, and does not commit the company, SEDE or Invest Minas to any minimum level of expenditure. The Protocol includes customary anti-corruption and data protection undertakings, with disputes to be resolved by mutual agreement. According to the filing, the Protocol builds on a March 2025 MoU with the State, moving from a general cooperation framework to a project-specific investment programme for Caladão.

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