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23/12/2024
Mining News

Summit Minerals acquires new tenement to enhance Equador Niobium and Tantalum Project in Brazil

Summit Minerals has secured a strategic tenement within the Equador Niobium and Tantalum Project in northeast Brazil, enhancing its resource potential.

The newly acquired 2 km² tenement is located to the east and north of the existing project and features outcropping pegmatites alongside several small-scale artisanal mines known for niobium and tantalum deposits.

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Under a binding agreement with RTB Geologia and Mineracao, Summit will pay $50,000 in cash and issue 800,000 ordinary shares to the vendors, with half of the shares subject to a six-month escrow period.

With a market capitalization of $22.76 million, Summit expects the transaction to close by December 31, 2024. Managing Director Gower He emphasized the strategic value of this acquisition, stating, “This project continues to amaze us with its potential and areas for growth.”

Due diligence efforts have already yielded promising rock chip samples, showing grades comparable to existing Equador Project results, including 42.93% niobium pentoxide and 11.39% tantalum pentoxide.

Summit plans to conduct a metallurgical test program to evaluate the feasibility of producing an economical niobium and tantalum concentrate, which will inform future development stages for the project.

The company is also advancing an expedited initial drilling program to assess the project’s quality and potential scale, supported by a recently completed capital raising.

Additionally, the Equador North tenement, adjacent to the new acquisition, contains an existing mining lease previously used for feldspar extraction, which is the primary host rock for niobium and tantalum in the Equador Project.

Summit Minerals remains focused on rare earths and niobium exploration across Brazil, Canada, and Western Australia.

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