Highlights

  • The business states the regulator needs more time to analyse its responses to further information requests.
  • According to Meteoric, FEAM has issued further information requests covering a broad range of project matters.
  • Because FEAM needs time to analyse them, award of the licence is now expected early in 2027.
  • Meteoric says its project execution ramp-up plans carry forecast expenditure of $18 million to 31 March 2027.

Meteoric Resources (ASX:MEI) has told the market that the Installation Licence for its Caldeira Rare Earth Project in Brazil is now expected early in 2027. The business states the regulator needs more time to analyse its responses to further information requests. Meteoric also gave an update on development spending, funding from Lynas Rare Earths Ltd and the timetable for Lynas's proposed acquisition of Meteoric.

The Licence Delay

The Installation Licence is the approval that would allow construction of the mine and processing facilities set out in the project's completed Definitive Feasibility Study. It is issued by FEAM, the environmental foundation of the state of Minas Gerais.

According to Meteoric, FEAM has issued further information requests covering a broad range of project matters. The company is assessing them and preparing responses, which may include additional field studies, and expects to complete those responses by the end of the fourth quarter of 2026. Because FEAM needs time to analyse them, award of the licence is now expected early in 2027. The licence has not been granted.

Meteoric says the revised timing coincides with the end of the wet season, typically October to March, which affects early earthworks and clearing but not the overall construction timeline. The company states that it expects no material impact on the project's development pathway or on the timetable for the scheme of arrangement. That is the company's own assessment.

Development Work And Spending

Front-end engineering design work continues with Ausenco. Meteoric says its project execution ramp-up plans carry forecast expenditure of $18 million to 31 March 2027. Initial work focuses on design and procurement to prepare for mobilising construction contractors. The next step is to award an engineering, procurement and construction management contract covering the design work. The company is reviewing whether some early-stage site works can proceed before the scheme completes, subject to approvals and wet-season access.

Lynas Funding And The Scheme

Lynas has proposed to acquire Meteoric through a court-approved scheme of arrangement. Under an interim facility, Lynas has agreed to provide up to A$110 million to cover development of Caldeira, transaction and implementation costs, and working capital while the scheme is pending. Design expenditure falls within the agreed facility budget terms. Meteoric says it has received an initial tranche of A$35 million.

The company gave an indicative scheme timetable, which is subject to change. The scheme booklet is expected to be dispatched in December 2026 and a scheme meeting held in January 2027. Implementation is targeted by March 2027, and only if shareholders and the court approve and the relevant Brazilian regulatory approval is obtained. Shareholders need not take any action at this stage, and Meteoric says it will advise when the booklet is available.

What Is Not In The Update

The announcement reports no exploration or drilling results and no new resource figures. It is a business update released alongside the company's quarterly activities report, which contains the cash flow details. The company also noted the conclusion of Brazil's elections and said it will keep working with federal, state and local stakeholders.

Risks And Milestones

The proposed acquisition is conditional, not completed. It requires shareholder and court approval and Brazilian regulatory approval, and the timetable is only indicative. The Installation Licence also remains subject to the regulator's review.

Confirmed next milestones given by the company are completion of responses to FEAM by the end of 2026, scheme booklet dispatch in December 2026, the scheme meeting in January 2027, licence award early in 2027, and targeted implementation by March 2027.