Enova Mining Eyes 17,796ha Brazil Rare Earth Project With Exclusive Option

Enova secures exclusive option over 17,796-hectare monazite project in Brazil

Enova Mining (ASX: ENV) has executed a binding option term sheet granting it a low-cost exclusive option to acquire a 100% interest in the Caraúbas Monazite Project, located in Paraíba, north-eastern Brazil. The project comprises 9 granted exploration licences covering approximately 17,796 hectares within the Borborema Geological Province.

This is an option, not a completed acquisition. The proposed deal remains subject to Enova exercising the option following satisfactory due diligence, shareholder approval for the consideration securities, and satisfaction of other conditions precedent. The option period runs until 13 October 2026, and there is no certainty the option will be exercised or the acquisition will complete.

Enova’s geology team has been mobilised to the project site to commence preliminary field reconnaissance and validate available geological information. No mineral resource has been defined at the project at this stage, and exploration results are preliminary in nature.

Eric Vesel, CEO / Executive Director, Enova Mining

“Our exploration team has commenced its assessment of the Caraúbas Monazite Project, with field reconnaissance and due diligence activities now underway. The Project represents an opportunity to secure a substantial landholding in a highly prospective region for rare earth mineralisation. Our immediate focus is to assess the project’s prospectivity and technical and commercial merits through a disciplined due diligence program…”

What is monazite and why does it matter for rare earth investors?

Monazite is a phosphate mineral that serves as a primary carrier of rare earth elements (REEs), including those used in permanent magnets and clean energy technologies such as electric motors and wind turbines. Monazite concentrates are sold as raw feed materials for “cracking” processes that release high-value rare earth minerals, and demand for these concentrates is currently high.

The Caraúbas Project also carries exposure to co-occurring heavy minerals, including ilmenite, rutile, and zircon, which represent additional value vectors alongside the rare earth potential. This profile is complementary to Enova’s existing Brazilian portfolio of REE, rutile, and heavy mineral projects.

Enova’s existing Brazilian portfolio already includes titanium drilling results in Brazil that reinforce the company’s thesis on co-occurring heavy mineral assemblages, with ilmenite and rutile appearing alongside rare earth mineralisation across multiple project areas.

Project geology and strategic rationale

Borborema Province: a proven critical minerals address

The Caraúbas Project sits within the Alto Moxotó Terrane of the Borborema Province, a major Precambrian orogenic province in north-eastern Brazil. The regional geology features high-grade gneisses, metapelites, and metasediments intruded by mafic to ultramafic dykes and sills — host-rock assemblages considered prospective for monazite mineralisation.

The Alto Moxotó Terrane shows a close geological correlation with basement domains of the Central African Fold Belt, a globally significant titanium and rare earth province. The announcement states this analogy underpins exploration confidence in the district-scale potential of north-eastern Brazil as a jurisdiction for critical titanium and zirconium minerals.

The Borborema Province sits within a broader north-eastern Brazilian corridor where Enova has previously identified a high-grade rare earth deposit in Brazil, supporting the company’s view that the region hosts district-scale REE mineralisation potential.

Infrastructure access and logistical advantages

The project is positioned within ~258–280 kilometres of two established export facilities: the Port of Cabedelo (approximately 280km from Caraúbas town) and Porto do Recife (approximately 258km). These are long-term logistical considerations at this early stage.

Key elements of the strategic rationale include:

• Geological prospectivity from mafic–ultramafic and metasedimentary host-rock assemblages
• Potential for alluvial heavy mineral concentration (monazite, ilmenite, rutile, zircon)
• Preliminary analysis indicates amenability to gravity separation with a low proportion of slimes
• Complementary to Enova’s existing Brazilian REE and heavy mineral portfolio
• Brazil offers investor-friendly policies with no government ownership mandates

Capital raise and acquisition terms

Placement and rights issue to fund exploration and due diligence

In conjunction with the proposed acquisition, Enova has received binding commitments to raise $1.5 million through an unbrokered placement to sophisticated and high net worth investors, priced at $0.001 per share. The placement will be issued in two tranches totalling 1,500,000,000 new shares.

Tranche 1 comprises 297,000,000 shares to raise $297,000, utilising the company’s existing capacity under ASX Listing Rule 7.1, with shares anticipated to be issued on 29 September 2026. Tranche 2 comprises 1,203,000,000 shares to raise a further $1,203,000, subject to shareholder approval at a general meeting.

Enova also intends to undertake a non-renounceable rights issue to eligible shareholders on the basis of one new share for every four shares held on the record date, to raise up to approximately $495,200 at $0.001 per share. GBA Capital will receive an adviser fee of 6% of total placement proceeds. The placement is not underwritten.

Funds raised will be applied to:

• Due diligence and exploration on the Caraúbas Monazite Project
• Exploration at the Naked Hill Project and existing portfolio
• Tenement maintenance costs
• General working capital and corporate overheads

Key acquisition terms at a glance

Note: The consideration securities (300,000,000 shares and 150,000,000 options) relate exclusively to the acquisition transaction payable to Mineração Paranaí LTDA. These are separate from the 1,500,000,000 placement shares issued to investors under the capital raise.

Next steps and what investors should watch

The path forward from here follows a clear sequence:

1. Complete the 30-day due diligence program (geological, legal, environmental, and commercial review), with the option decision due by 13 October 2026
2. Shareholder general meeting to approve Tranche 2 placement shares; separately, the consideration securities require shareholder approval at a general meeting to be held within 3 months of the election notice
3. Rights Issue indicative timetable:

4. Subject to acquisition completion, systematic exploration to validate the geological setting and define priority targets for follow-up work

If the option is exercised and the acquisition completes, Caraúbas would expand Enova’s footprint in north-eastern Brazil and add a monazite-focused asset to a portfolio that already spans ionic adsorption clay REE, rutile, and heavy mineral projects across the country. For investors, the key near-term milestones are the outcome of due diligence and the shareholder vote on consideration securities — both of which will determine whether this option converts into an active exploration asset.

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