Harvest Minerals (AIM:HMI) has agreed to acquire 100% of Scanty Mineração from Union Star Metals, adding eight rare earth element (REE) projects across 27 exploration tenements in Brazil.
The AIM-listed miner already holds the Arapuá REE project in Brazil, where work last year returned average Total Rare Earth Oxide (TREO) concentrations of between 2,110.53 ppm and 2,656.99 ppm.
Scanty's most advanced assets, Capão Bonito and Sguario, sit within the Ribeira Orogeny and are linked to fractionated A-type granites, a geological setting considered favourable for ionic clay-hosted REE mineralisation, with surface anomalies already identified through portable X-ray fluorescence testing.
The projects span the Poços de Caldas Alkaline Complex and Bahia Rare Earth Province, established mineral provinces also hosting niobium, phosphate and bauxite deposits.
Consideration includes an initial A$200,000 cash payment on completion, plus up to a further A$300,000 tied to development milestones.
Harvest also assumes approximately A$1.5 million of deferred payments and a 1.5% royalty owed to previous vendors, contingent on defining an inferred resource of at least 20 million tonnes at 1,000 ppm REO within 36 months, and completing a Scoping Study recommending a pre-feasibility study within 48 months.
"We are leveraging our established operating platform and technical expertise in Brazil to build a broader portfolio of REE assets, within a structure that aligns consideration with project success", said Executive Chairman Brian McMaster.
Scanty reported gross assets of roughly A$30,000 and a pre-tax loss of approximately A$800,000 as at 31 December 2025.
News Intelligence what this means for the company
Harvest Minerals is acquiring eight Brazilian rare earth projects from Union Star Metals via Scanty Mineração, paying A$200,000 upfront plus up to A$300,000 in milestone-linked payments, plus assuming A$1.5 million in deferred vendor payments and a 1.5% royalty. The deal expands its REE footprint in established mineral provinces and ties consideration to achieving a 20 million tonne inferred resource at 1,000 ppm REO within 36 months—a structure that defers most cash outlay until exploration success is proven.
The acquisition adds early-stage exploration upside to Harvest's existing Arapuá project, but the bulk of consideration (A$1.5 million deferred payments plus royalty) is contingent on hitting a specific resource target within 36 months. Success hinges on whether the Capão Bonito and Sguario prospects—currently at surface anomaly stage—can deliver the required tonnage and grade to trigger payments and justify the broader portfolio strategy.
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