Highlights

• Appia raised C$283,300 through a non-brokered private placement to support exploration in Brazil and Saskatchewan.
• Negotiating a potential 50% partnership with Ultra Rare Earth Inc. for the PCH Ionic Adsorption Clay Project in Brazil.
• Company aims to develop a rare earth supply chain outside of China, with a strategic focus on Brazilian ionic clay deposits.

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Appia Rare Earths & Uranium Corp. ( (opens in a new tab)CSE: API | OTCQB: APAAF) has completed the first tranche of a non-brokered private placement, raising C$283,300 through the issuance of 1.53 million working capital units (priced at C$0.185). Each unit carries a half-warrant exercisable at C$0.30 for two years. A finder’s fee of C$888 cash and 4,800 broker warrants was paid. Proceeds are earmarked for general working capital and exploration at Appia’s projects in Brazil and Saskatchewan.

At the same time, Appia highlighted progress on its binding term sheet with Ultra Rare Earth Inc., which aims to acquire a 50% interest in Appia Brasil Rare Earths Mineracao Ltda, holder of the PCH Ionic Adsorption Clay Project in Goiás State, Brazil. Ultra has until October 15 to finalize its commitment, including a US$2M investment at C$0.50/unit with warrants at C$0.70.

Why This Matters

Appia’s financing is modest in scale, yet strategically timed as Brazil’s ionic clay deposits increasingly attract global attention. These deposits are among the few outside China with potential for a scalable heavy rare earth supply. The Ultra partnership, if closed, would de-risk Appia’s Brazil ambitions with fresh capital and shared development exposure.

Open Questions

• Scale vs. dilution: With 170 million shares outstanding (210M fully diluted), can Appia generate sufficient value per share from its Brazil and Canada portfolios, or will financing needs continue to weigh on the stock?
• Execution risk: Ultra’s US$2M commitment is relatively small—does it signal a cautious partner, or is it a toe-in-the-water before deeper financing?
• Strategic buyers: Will Japanese, Korean, or U.S. groups with magnet supply chain mandates view Appia’s clay project as a viable partner?

Market View

Fundamentals: At C$0.185, Appia trades at a market cap near C$31M, light for a company holding multiple exploration-stage projects. The key driver is PCH’s potential, but further resource definition and metallurgy results will be critical before re-rating.

Technical picture: Shares remain rangebound below C$0.20 with resistance near C$0.25. The warrant overhang at C$0.30 may cap upside until material exploration news or a larger partner steps in.

REEx Take

The financing confirms some investor interest but does not yet change the trajectory—success hinges on Brazil. For U.S. policymakers focused on rebuilding a non-Chinese supply chain, companies like Appia remain on the speculative end of the spectrum: intriguing geology, but execution and financing risks remain front and center.

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