PVW Resources has agreed to acquire Scanty Mineracao, securing a portfolio of 11 projects with potential for new ionic clay rare earth element (REE) discoveries in Brazil.

The acquisition includes 39 exploration licences across four areas, with PVW paying an exclusivity fee of A$50,000 ($32,756) and committing to further payments and share issuances upon meeting certain conditions.

Due diligence and shareholder approvals are pending for the deal’s completion.

Under the binding agreement, PVW Resources will pay an initial exclusivity fee of $50,000.

Upon satisfying various conditions, PVW will issue 40 million consideration shares and 120 million performance rights, alongside a $600,000 payment to Scanty vendors.

The performance rights will vest based on the achievement of two key milestones: defining an Inferred Mineral Resource of at least 20 million tonnes at 1,000 parts per million rare earth oxides within three years and completing a scoping study recommending a pre-feasibility study within four years of completion.

A further $1.5m will be paid upon achieving specific resource and study milestones.

Completion of the acquisition is subject to PVW’s satisfaction with due diligence, necessary shareholder approvals and evidence that Scanty has no outstanding debts or contractual obligations.

The deal also includes a 1.5% NSR royalty for the Scanty vendors.

PVW Resources non-executive chairman George Bauk said: “The PVW Board see these projects as an exceptional opportunity to grow our presence in the rapidly evolving critical minerals landscape globally.

“The acquisition of strategically located rare earth element projects in Brazil allows us to gain a foothold in a highly prospective and stable region, which has recently established itself at the forefront of the rare earth industry globally.”