Canadian Company Target Rare Earths in Piauí as Government Seeks Expanded Mapping in the State

This article was translated from the original by Gabriel Garcia, CNN Brazil, Brasília — 11/09/25 at 06:20 | Updated 11/09/25 at 06:20

A Canadian mining company is moving early to secure rare earth opportunities in Brazil’s Northeast, while the federal government works to accelerate geological mapping and modernize sector regulations.

Origen Resources, a Canadian mining firm listed on the Ontario and Frankfurt stock exchanges, has signed a letter of intent to acquire a rare earths project in the state of Piauí.

The concession package—covering 3,978 hectares across two inland blocks—also grants the company a right of first refusal over five additional exploration areas. Together, these lands have the potential to support the creation of a rare earths mining district in Northeastern Brazil.

The company disclosed the information in a material announcement to the market.

Initial surface samples returned grades of up to 1.61% total rare earth oxides, a level considered strong for early-stage work and sufficient to confirm the area’s mineral potential. The grade reflects the combined concentrations of all rare earth elements present in the rock or ore.

Rare earths are essential for the production of permanent magnets, batteries, and high-technology components.

Preliminary assessments also indicate the possible presence of an ion-adsorption clay deposit, a geological model known for hosting high concentrations of heavy rare earth elements and primarily exploited in China. These deposits—known as IACD (Ion Adsorption Clay Deposits)—are globally rare and carry significant strategic importance.

Unlike hard-rock deposits, ion-adsorption clays allow for less intrusive extraction methods with lower environmental impact.

Steps and Conditions

Origen will have 150 days of exclusivity to conduct technical and legal due diligence on the project.

If results are favourable, the company will acquire a 90% interest by paying US$ 50,000 to the vendor, issuing 2 million shares, and committing at least US$ 1 million in exploration spending over the next two years.

At the end of this period, the unnamed vendor will receive 15% of Origen’s shares and a seat on the board of directors.

Government Recognizes the State’s Potential

Piauí is considered one of the Brazilian states with significant potential for rare earth mineralization.

Amid rising international interest and limited geological data across the country, the CEO of the Brazilian Geological Survey (SGB), Sabrina Góis, met with Governor Rafael Fonteles last Thursday (6th) in Brasília to discuss partnerships aimed at expanding mineral mapping in the state.

During the meeting, the governor expressed strong interest in advancing the assessment of Piauí’s mineral potential and confirmed that the state intends to rely on the technical support of the SGB.

Currently, only 27% of Brazil’s continental territory is mapped at the 1:100,000 scale, which is considered a more detailed level of geological surveying. As a result, the country still lacks precise knowledge of more than 70% of its subsurface potential.

link to original article: https://www.cnnbrasil.com.br/economia/negocios/canadenses-miram-terras-raras-no-piaui-e-governo-quer-mapeamento-no-estado/#goog_rewarded