Perpetual Resources has signed a binding term sheet with Mineracao Serra Do Sao Domingos for an option to acquire rare earth element (REE), niobium and scandium mineral rights at the Raptor project in Minas Gerais, Brazil.

The option covers four tenements (exploration tenements) in the Tier 1 Caldeira Rare Earth complex.

This agreement grants Perpetual an initial 90-day due diligence period for a fee of $30,000, extendable by another 90 days for the same fee.

Located in the State of Minas Gerais, Brazil, the exploration tenements cover a total area of 379.99 hectares.

Perpetual has the right to extend the exclusive option period by an additional 90 days with a second payment of $30,000 (A$44,974) to Sao Domingos.

During this time, Perpetual has the exclusive right to undertake due diligence on the tenements for the specified minerals.

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If Perpetual decides to proceed with the acquisition, a payment of around $456,000, minus any previously paid option fees, will be required, along with a facilitation fee of approximately A$57,000 to the introducing party.

Perpetual executive chairman Julian Babarczy said: “This agreement represents a highly strategic move for Perpetual, securing for us, at an extremely low cost, the mineral rights to such a prospective tenement package in an area which is highly sought after for rare earth exploration.

“This agreement also represents a further extension of our now considerable exploration activities in the prolific Minas Gerais region of Brazil, which hosts an increasing number of Tier 1 orebodies spanning rare earth and lithium in a highly supportive regulatory environment for mining exploration companies.”

The Caldeira Rare Earth Complex is considered highly prospective for REE exploration. The quality of nearby projects underscores the potential value of the tenements Perpetual aims to acquire.

Last year, Perpetual entered an option agreement with RTB Geologia E Mineração to acquire a 100% interest in three lithium exploration permits in Brazil.