Key Highlights

  • Altris Engineering was appointed as Lead Design Engineer for the 24-week Front-End Engineering and Design (FEED) of the Ema Rare Earth Project.
  • A two-tranche institutional Placement at A$0.053 per share raised approximately A$10 million, leaving cash of approximately A$12.2 million at quarter end.
  • A public hearing was held in Apuí as part of the INCRA land-access process — the last remaining land-related document required by the Amazonas State environmental authority (IPAAM).
  • Subsequent to quarter end, BCM executed a binding agreement to acquire a 90% interest in Sais Nordeste, a Brazilian magnesium sulphate producer, at nominal consideration of R$1.

Brazilian Critical Minerals Limited (ASX:BCM) made meaningful progress across engineering, permitting and corporate activities during the September 2026 quarter, building on the Bankable Feasibility Study (BFS) released in recent periods. The company's flagship asset is the Ema Rare Earth Project in Amazonas State, Brazil, a proposed in-situ recovery (ISR) development targeting mixed rare earth carbonate production.

Altris Engineering was appointed as Lead Design Engineer for the FEED program, providing continuity from the BFS engineering team. The 24-week FEED program will mature engineering to a level required to support detailed engineering, vendor quotations and project development. Key FEED objectives include confirming major equipment selections, refining the process plant design from PLS receipt through to MREC dewatering, developing equipment specifications and requesting conforming vendor quotations, and updating the execution plan, Capital cost estimate and implementation schedule.

Permitting Advances Through Public Hearing

On 9 September 2026, BCM presented the Ema Project to a public hearing at the Apuí Municipal Chamber. The hearing forms part of the protocol BCM is advancing with Brazil's National Institute for Colonisation and Agrarian Reform (INCRA), which relates to the project's proposed activities on land within a federally controlled area.

INCRA consent represents the last remaining land-related document required by the Amazonas State environmental authority (IPAAM) for the current environmental licensing process. A letter confirming mineral title regularity, separately requested by IPAAM from the National Mining Agency (ANM), has already been lodged, further clearing the permitting pathway.

Magnesium Sulphate Acquisition Reduces Supply Chain Risk

Subsequent to quarter end, BCM's wholly owned Brazilian Subsidiary executed a binding agreement to acquire a 90% interest in Sais Nordeste Indústria e Comércio Ltda, an established magnesium sulphate producer in Feira de Santana, Bahia. Magnesium sulphate is the principal leaching reagent proposed for Ema's ISR process, making domestic supply a critical Factor in project Economics and Chinese supply chain exposure.

Sais Nordeste's initial capacity is expected to meet approximately 50% of Ema's requirements over the first few years of production, with potential to expand beyond 100% of requirements. The acquisition is for nominal cash consideration of R$1, with BCM assuming certain identified taxation liabilities currently estimated at approximately R$15.3 million, the majority payable over 10 years. The plant entered Brazilian judicial recovery in February 2026 but operated at strong utilisation prior to that point, with robust product demand.

Capital Management and Corporate

The A$10 million placement, completed in two tranches at A$0.053 per share, was supported by new and existing institutional investors. Tranche 1 raised approximately A$7.4 million under existing placement capacity, while Tranche 2 raised approximately A$2.7 million, including director participation, following Shareholder approval at an Extraordinary General Meeting. Barrenjoey Markets and Wallabi Group acted as Joint Lead Managers.

Cash at quarter end was approximately A$12.2 million. An experienced finance executive, Justine Lea, was appointed as Chief Financial Officer in August 2026, strengthening the executive team. Ongoing offtake discussions with selected parties are advancing, with more detailed evaluation of product specifications and development schedules underway, though no agreements have been concluded. Project financing discussions with prospective funding partners continue in parallel.

Sector Context

The global rare earth sector continues to attract capital as Western governments and corporations seek to diversify supply chains away from Chinese dominance. Brazilian projects benefit from the country's significant rare earth endowment, competitive operating costs and generally favourable regulatory framework relative to some other jurisdictions. ISR methodology, if successfully applied, offers the potential for a lower capital intensity development pathway compared to conventional open-pit mining and processing.

Risks

BCM operates in a complex regulatory environment across two jurisdictions. While the INCRA process has advanced significantly, permitting outcomes in Brazil can be subject to delay. The Sais Nordeste acquisition introduces integration and restructuring risks, and the estimated R$15.3 million legacy tax Liability remains subject to negotiation. Ongoing legal proceedings with Drake Private Investments in the Supreme Court of Western Australia introduce financial and management distraction. Cash of A$12.2 million will need to support FEED, permitting and the Sais Nordeste restructuring simultaneously, meaning further capital raises may be required ahead of a final Investment decision.

What to Watch Next

The key milestones to monitor are INCRA consent and the progression of IPAAM environmental licensing, FEED completion and any update to the capital cost estimate, offtake agreement execution, and progress in securing project financing. The Sais Nordeste transaction remains subject to judicial, regulatory and corporate approvals and its completion will mark a significant step in reducing Ema's reagent supply chain dependency.