Resouro Partners with MagBras Initiative to Establish Complete Rare Earth Permanent Magnet Production Supply Chain in Brazil
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Resouro Strategic Metals Inc.
BC0430203 (Canada) ARBN 671 716 457 (Australia)
Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143
Suite 250, 997 Seymour Street, Vancouver, British Columbia, Canada V6B 3M1 – Tel: +1 403 807 2948
ASX: RAU
TSXV: RSM
OTCQB: RSGOF
TSXV/OTCQB Release ASX Release
16 February 2025 17 February 2025
Resouro Partners with MagBras Initiative to Establish Complete Rare Earth
Permanent Magnet Production Supply Chain in Brazil
Resouro Strategic Metals Inc. ( ASX: RAU ; TSX-V: RSM ; FSE: 8TX ; OTC: RSGOF )
(“Resouro” or the “ Company”) is p leased to announce its collaboration with the MagBras
Initiative, the Industrial Demonstrator of the Complete Production Cycle for Rare Earth
Permanent Magnets (“Magbras Initiative” or “Magbras Project”).
About MagBras
The MagBras Initiative is a pioneering project dedicated to producing rare earth permanent
magnets entirely within Brazil. Led by SENAI MG, SENAI SC, and the Rede de Institutos SENAI
de Inovação, a Brazilian network of industrial training and innovation institutions, the initiative
aims to reduce reliance on imports, promote local innovation, and serve as a scalable model for
domestic and international production. This could position Brazil as a fully integrated and
sustainable rare earth products supply chain and global force in critical minerals production.
The MagBras Initiative, supported by the ‘Call for Structural Project Actions’ between Fundep
and SENAI, is a competitive program designed to finance transformational projects in Brazil. The
MagBras Project has been successfully accepted for comprehensive funding from Minas Gerais
State Agencies, enabling the full realization of the initiative’s objectives.
The MagBras Group is a strong collaboration between companies such as Stellantis, Iveco,
Schulz, Vale, Mosaic and Weg amongst others.
Importantly, Stellantis leads one of the groups as the main anchor directly connected with
Resouro’s producer slot. Stellantis are an American-French-Italian automotive conglomerate who
manufactures global car brands such as Abarth, Alfa Romeo, Chrysler, Citroen, Dodge, DS
Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, RAM and Vauxhall.
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Resouro Strategic Metals Inc.
BC0430203 (Canada) ARBN 671 716 457 (Australia)
Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143
Suite 250, 997 Seymour Street, Vancouver, British Columbia, Canada V6B 3M1 – Tel: +1 403 807 2948
Project Selection
The project selection process assessed each submission based on technical and financial merits,
as well as its qualification as a structuring project for the Rare Earth Elements (“REE”) value
chain, amongst other innovative projects related with sustainability and new technologies.
The MagBras Initiative proposal was submitted in late 2024 and has now been successfully
accepted for funding . With this approval, the cooperation agreement (a long form contract), is
expected to be signed by all parties in early 2025. This selection process ensures that only high-
impact and high-value projects are selected for funding, reinforcing the importance of such
initiatives in advancing the REE supply chain.
Resouro’s Commitment
As one of the key producing collaborators, Resouro will contribute to the MagBras Initiative its
expertise, cash consideration and “in-kind” support, including REE product samples and strategic
insights. Resouro has pledged to contribute a total of US$35,000 ( BRL 200,000 ) in four (4)
tranches in May, July, September and November 2025. By working closely with the MagBras
technical team, Resouro will play a relevant role in advancing the Magbras Project’s vision of a
vibrant, competitive and domestic end-to-end production cycle.
Addressing Strategic Challenges
The MagBras Project addresses Brazil’s over -reliance on imported rare earth magnets,
predominantly sourced from China, which controls over 95% of the global market. Recent
geopolitical changes underscore the urgency of developing localized, diversified sup ply chains.
The MagBras Project underpins the need to develop a diverse, independent and sustainable supply
chain.
Brazil has 17% of the world’s REE reserves and ranks third globally trailing only China (40%)
and Vietnam (18%). Despite this natural wealth, the country lacks domestic production and
manufacturing. The MagBras Initiative, in collaboration with Resouro and other market p eers,
aims to close this gap by creating an expanding industrial sector that spans the entire value chain,
with transparency of governance from mining to manufacturing end products, such as permanent
magnets.
Key Highlights of the MagBras Project
Brazil’s current demand for permanent magnets is estimated at 6,000 to 10,000 ton nes annually,
driven by industries such as automotive manufacturing, wind energy, and home appliances.
Demand is projected to increase substantially over the next decade, driven by the adoption of
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Resouro Strategic Metals Inc.
BC0430203 (Canada) ARBN 671 716 457 (Australia)
Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143
Suite 250, 997 Seymour Street, Vancouver, British Columbia, Canada V6B 3M1 – Tel: +1 403 807 2948
wind turbines, expansion in the automotive manufacturing sector, and strong domestic market
growth.
✓ Integrated Supply Chain : The Magbras P roject will develop a demonstrator facility
capable of producing 100 ton nes of permanent magnets annually, serving as a scalable
model for industrial production.
✓ Collaborative Network: MagBras brings together SENAI MG, SENAI SC, the Rede de
Institutos SENAI de Inovação, and a consortium of 20 companies, including Resouro,
alongside startups and automotive manufacturers.
✓ Funding and Timeline : With a proposed budget of €10 million ( BRL60 million) and a
three-year timeline, MagBras is poised to revolutionize Brazil’s rare earth industry.
Resouro’s Strategic Role and Benefits
Resouro’s contributions to MagBras will be anchored by the Company’s flagship Tiros Project,
located in Minas Gerais. The Tiros Project resource contains 198 million tonnes of titanium
dioxide (TiO2) and 6.6 million tonnes of total rare earths oxide (TREO) in 1.7 Billion tonnes of
Mineral Resources (M+I+I). As Resouro strives to become a major supplier of rare earth
materials, the MagBras Initiative will position Resouro as a key supplier for permanent magnet
production while leveraging its expertise to enhance the Magbras Project’s success.
The potential benefits for Resouro are substantial. By engaging in this project, Resouro will
position itself as a key player in the REE value chain in Brazil. The project allows Resouro to
showcase its potential to supply the REE supply chain while integrating into a collaborative
network of 26 relevant organizations, including mining companies , off-takers and magnet and
electric motor end-users. This engagement strategically positions Resouro to establish a strong
presence in the REE market, leverage partnerships for future opportunities, and contribute to the
vertical integration of this critical supply chain.
Commenting on Resouro’s partnership with the MagBras Initi ative, Philippe
Martins, Resouro’s Brazilian Executive Director, said:
“We are honored to play a key role in the MagBras Project, a transformative initiative
spearheaded by SENAI MG, SENAI SC, and the Rede de Institutos SENAI de Inovação. This paves
the way for Resouro to participate in a sustainable and fully integrated rare earth supply chain
that will solidify Brazil’ s position as a global leader in critical minerals. Moreover, it lays the
foundation for Resouro to emerge as a prominent supplier in Brazil and a global force in the rare
earths supply chain.”
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Resouro Strategic Metals Inc.
BC0430203 (Canada) ARBN 671 716 457 (Australia)
Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143
Suite 250, 997 Seymour Street, Vancouver, British Columbia, Canada V6B 3M1 – Tel: +1 403 807 2948
This announcement has been authorized for release by the Board of Directors.
Contact Information:
Chris Eager,
Executive Chair (Santiago)
+44 7388 0579809
Alistair Stephens
Chief Executive Officer (Perth)
+614 88 99 2544
Melissa Hamilton,
Media (Sydney)
+61 417 750 274
About the Company
Resouro is a Canadian incorporated mineral exploration and development company, listed on the
ASX, TSXV , OTC and FSE, focused on the discovery and advancement of economic mineral
projects in Brazil, including the Tiros Titanium-Rare Earths Project in Minas Gerais and the Novo
Mundo Gold Project in Mato Grosso. The Tiros Project has 28 mineral concessions totalling 497
km2 located in the state of Minas Gerais, one of the best infrastructurally developed states of
Brazil, 350 km from the state capital of Belo Horizonte. Resouro's Mineral Resource Estimate for
the Tiros Project is 1.7 billion tonnes of Inferred, Indicated and Measured Resources (reference:
ASX release ASX:RAU dated 18th July 2024, TSXV 17th July 2024).
Note: Further details of the Company’s Maiden JORC MRE are contained within the Company’s announcement
of 18 July, 2024. Resouro is not aware of any new information or data that materially affects the information
included in the Company’s announcement of 18 July 2024 and that all material assumptions and technical
parameters underpinning the estimates referred to therein continue to apply and have not materially changed.
MREO (ppm)TREO (ppm)TiO2 (%)TONNES (t) CategoryDomain
2,2008,7002342,000,000Inferred
HG
High Grade
2,3809,0302355,700,000Indicated
2,5309,3202420,800,000Measured
2,4009,00023120,000,000Sum
9503,50011620,000,000Inferred
MG
Medium Grade
1,0203,65011704,000,000Indicated
9973,57011224,000,000Measured
9303,500111,500,000,000Sum
1,1003,900121,700,000,000Totals
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Resouro Strategic Metals Inc.
BC0430203 (Canada) ARBN 671 716 457 (Australia)
Level 10, Kyle House, 27-31 Macquarie Place, Sydney NSW 2000 – Tel: + 61 407 123 143
Suite 250, 997 Seymour Street, Vancouver, British Columbia, Canada V6B 3M1 – Tel: +1 403 807 2948
Resouro Strategic Metals Inc., capital structure:
TSXV Chess Depositary Interests 43,313,635
ASX Common Stock 49,276,414
Total on Issue 92,590,049
Shares in Escrow, included in Total on Issue 10,979,257
Options issued under the Company’s Plan 12,495,000
Options issued to Brokers 1,843,643
Warrants issued to Brokers 600,616
Performance Rights 750,000
Fully Diluted Securities 108,279,308
Forward-Looking Information
This news release contains certain "forward -looking information" within the meaning of applicable securities law.
Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend",
"believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or
"will" occur. Although we believe that the expectations reflected in the forward-looking information are reasonable,
there can be no assurance that such expectations wi ll prove to be correct. We cannot guarantee future results,
performance or achievements. Consequently, there is no representation that the actual results achieved will be the
same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are
made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results
to differ materially fr om those anticipated in the forward -looking information. Some of the risks and other factors
that could cause the results to differ materially from those expressed in the forward-looking information include, but
are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental
regulation and environmental regulation; failure to obtain industry partner and other third party consents and
approvals, if and when required; the need to obtain required approvals fr om regulatory authorities; stock market
volatility; liabilities inherent in the mining industry; competition for, among other things, skilled personnel and
supplies; incorrect assessments of the value of acquisitions; geological, technical, processing and transportation
problems; changes in tax laws and incentive programs; failure to realize the anticipated benefits of acquisitions and
dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as
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The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
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