Cazaly Resources (ASX:CAZ) has entered into an Option Agreement to acquire a 90% interest in a suite of early-stage Rare Earth (REE) and Uranium (U) exploration projects in Brazil, covering a total land position of 1,118km² across the states of Rio Grande Do Sul and Minas Gerais, the company disclosed on 4 November 2026.

Key Points

  • Cazaly has entered into an Option Agreement giving it a 12-month option to acquire a 90% interest in Einstein Ventures, which holds a 100% interest in the projects
  • The land package comprises 64 tenements covering 1,118km² in the Brazilian states of Rio Grande Do Sul and Minas Gerais
  • Initial exploration at the Encruzilhada Block returned up to 1,145 ppm TREO from 39 soil samples, with an average of approximately 403 ppm
  • Rock-chip sampling at Encruzilhada returned 130–677 ppm TREO from 25 samples, with auger sampling identifying additional REE-bearing regolith
  • Cazaly will conduct an initial period of due diligence before deciding whether to proceed with the option

Option Agreement Terms and Project Structure

Under the Agreement, Cazaly will first undertake an initial due diligence period. If the company elects to proceed, it will hold a 12-month option for the right to acquire a 90% interest in Einstein Ventures, the project holding company. Einstein Ventures holds a 100% interest in the projects. The package consists of 64 tenements totalling 1,118km² located across two Brazilian states. Material terms of the Agreement are contained in Schedule 1 of the filing. Cazaly stated it will conduct due diligence and announce the outcome to the market in due course.

Encruzilhada and West Lavras Project Exploration Results

The Encruzilhada project, located in Rio Grande Do Sul, covers REE anomalies within the Rio Grande Shield in and around the Pelotas Batholith. Initial exploration returned up to 1,145 ppm TREO from 39 soil samples averaging approximately 403 ppm, and 130–677 ppm TREO from 25 rock-chip samples. Known uranium intersections in adjoining tenure display an apparent structural control, with mineralisation focused within carbon-rich sedimentary units. The West Lavras project targets secondary ionic-clay REE mineralisation hosted in felsic volcanic rocks of the Acampamento Velho Formation, including rhyolites, ignimbrites and volcanic breccias. Gold mineralisation potential will also be evaluated at West Lavras.

MGB Project in Minas Gerais

The MGB project is situated approximately 150km from the coast in Minas Gerais State and covers an intrusive suite of leucogranite rocks. Field mapping has identified REE-bearing mineral phases within the project's granitoids, indicating potential for REE enrichment within the overlying weathering profile and ion-adsorption clay-hosted REE mineralisation. The project was acquired based on reprocessed airborne geophysical data interpretations. The company disclosed it is not aware of any drilling having been conducted on the project and that there is no record of modern exploration on the tenements. Access to the site is via unsealed roads.