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Purchase of the Serra Negra project in Minas Gerais reinforces foreign interest in Brazilian rare earths and niobium, in a new Oceana operation following investor advances in the critical metals sector
Oceana has closed a deal to purchase 100% of the Serra Negra project in Minas Gerais, in a transaction of up to US$ 10.2 million, reinforcing foreign interest in Brazilian rare earths and the potential for niobium in the country.
New deal expands the race for rare earths
The acquisition is part of another M&A in the critical metals sector, just days after the announcement of the purchase of Serra Verde by USA Rare Earth, a move that put the Brazilian market in the spotlight.
The deal includes US$ 2.95 million in cash and about US$ 5 million in Oceana shares, listed on the Australian Stock Exchange. The buyer may also pay up to US$ 2.25 million later.
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This additional amount will depend on progress in confirming the Serra Negra reserves. The operation also includes a 2.5% royalty payment on net revenue.
Oceana intends to finance the purchase through a share issue already anchored by major investors, including institutional ones.
Serra Negra has potential still in the initial phase
The rare earths and niobium reserves in Serra Negra have not yet been confirmed. The initial exploration of the asset did not have these minerals as the main focus, which maintains the need for further evaluations.
Oceana reported that initial surveys and studies in nearby areas indicate the presence of these resources.
Even so, more exploration activities will still be necessary for the reserves to be estimated.
Therefore, part of the payments will be linked to the progress of these works. The structure of the agreement connects the total transaction value to the progress of mineral confirmations in the mining asset.
Area near Araxá increases interest
The buyer highlighted that the mines are in a “tier-one” area, close to the niobium reserves of CBMM in Araxá. This reserve is considered the largest in the world and is controlled by the Moreira Salles family.
The region is also near the rare earths and niobium project of St George Mining. For Oceana, this combination represents a unique opportunity to participate in the critical metals industry in Brazil.
In addition to Serra Negra, Oceana has two lithium projects located in Ceará and Australia. The company has a market value of 94 million Australian dollars.
Its shares have accumulated a valuation of 1.7883% in 12 months and 117% in 2025.
Purchase of Serra Verde reached the STF
The announcement of the acquisition of Serra Negra occurred one day after the purchase of Serra Verde in Goiás was questioned in the Supreme Federal Court by the Sustainability Network.
The party requested an injunction to suspend the deal with the Americans until the Government and the National Mining Agency provide explanations and analyses on the “national interest” in the transaction.
Serra Verde is the first operational rare earths project in the country. The purchase generated intense discussions and became part of the political polarization surrounding Brazilian mineral assets.
Specialized lawyers told Brazil Journal that there would be no legal basis for the STF to block this M&A or others like it. One of these sources noted that the asset’s controllers were already American.
Legal advisory involved Brazil and Australia
The controllers mentioned are the private equity firms Denham Capital and Energy & Minerals Group, which invested years ago in Serra Verde.
In the deal, Veirano Advogados acted as Oceana’s Brazilian legal advisor. Hamilton Locke participated as the Australian legal advisor.
The sequence of operations shows the growing external interest in Brazilian rare earths, while projects at different stages gain relevance amid the search for critical minerals and niobium in the country.
With information from Brazil Journal.
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