Key Highlights

  • Oceana Metals (ASX:OCN) completed its 100% Acquisition of Serra Negra in Brazil on 16 October 2026 for US$2.95 million in cash plus shares, with up to US$2.25 million more on milestones.
  • Re-assaying historic core roughly doubled the known mineralised footprint to over 4.5 square kilometres, with hole L179 returning 122 metres at 1.2% total rare earth oxide.
  • A maiden 20,000-metre diamond drilling programme began in early September 2026, focused on a 1.5 by 1.5 kilometre central target within the 10-kilometre carbonatite complex.
  • Cash stood at A$17.99 million at 30 September 2026, up from A$8.17 million at 30 June, supported by a A$12.6 million placement.

Oceana Metals has four drill rigs working at Serra Negra in Brazil because the project, which it completed buying on 16 October 2026, showed high-grade rare earth mineralisation in old drill core that was never assayed for those elements. The company is now testing whether that promise holds up in new holes.

What Oceana does

Oceana Metals Limited is a Perth-based mineral exploration company, listed on the ASX on 1 July 2022 and classified in the Materials sector. Its shares are ordinary shares. It earns no operating revenue, so its fortunes depend on exploration results and its ability to fund them.

Serra Negra, in Minas Gerais in south-east Brazil, is its focus. The project covers a carbonatite complex about 10 kilometres wide, and the company is targeting rare earth elements and niobium.

The acquisition

Oceana completed the purchase of 100 per cent of Songeo Mineração S.A., the holder of Serra Negra, on 16 October 2026, having first announced the deal on 28 April 2026.

The upfront price was US$2.95 million in cash plus 15,537,600 shares at a deemed A$0.36. Up to US$2.25 million more is payable on milestones: US$750,000 on a maiden JORC resource estimate, and US$1.5 million if that estimate reaches at least 100 million tonnes at 4 per cent total rare earth oxide.

Vendors also receive a 2.5 per cent net smelter royalty, excluding iron ore, and an unrelated party, Karri Capital, receives a 1 per cent Royalty for facilitating the deal. The vendors keep the iron ore rights.

What the re-assays showed

On 17 September 2026 Oceana said re-sampling of historic core had roughly doubled the known mineralised footprint to more than 4.5 square kilometres. Hole L179 returned 122 metres at 1.2 per cent total rare earth oxide from 50 metres, including 32 metres at 2.7 per cent.

The company-reported figures come from historic holes spaced 300 metres to over 1 kilometre apart, and they are exploration results, not a resource. Forty-five of 68 re-sampled holes were still awaiting assays at that date.

Earlier re-assays of historic core had already returned 50 metres at 4.0 per cent total rare earth oxide from 53 metres in hole LG42. The company compares the weathered carbonatite setting with Mount Weld, a comparison it presents as favourable.

Oceana's own maiden programme of about 20,000 metres of diamond drilling began in early September 2026, focused on a 1.5 by 1.5 kilometre central target. It also completed a 1,304 line kilometre magnetic survey, and its Patrocínio core shed and logging Facility is now operational.

Funding

Cash stood at A$17.99 million at 30 September 2026, up from A$8.17 million at 30 June, helped by a A$12.6 million Placement Tranche settled on 17 July 2026.

Net operating cash outflow for the quarter was A$1.94 million, including A$1.25 million of evaluation costs mostly tied to the Songeo acquisition. A cleansing prospectus lodged on 1 November 2026 releases part of the consideration shares from escrow.

Risks and milestones

Mineral rights are a central risk. Oceana waived a condition requiring a formal response from Brazil's Mining regulator, the ANM, on two mining rights. Applications to add rare earths and niobium to them have a decision expected in the first quarter of 2027, with timing and outcome uncertain.

A third permit faces forfeiture proceedings and was assigned no value. Rare earth Economics also depend on metallurgy, processing routes and prices that the company has not yet demonstrated.

Near-term dates include drilling assays through the fourth quarter of 2026, remaining historic assays, and a maiden JORC resource estimate in the coming months.

The Annual General Meeting is at 9:30am AWST on 20 November 2026 in West Perth.