Highlights
- Appia Rare Earths finalizes C$2.78M financing and a 50/50 partnership with Ultra Rare Earth Inc.
- Ultra commits up to US$6M for drilling and prefeasibility study at Brazil's PCH Project.
- Ultra becomes the project operator with a majority vote on the technical committee.
- Appia retains a 25% interest in the project.
- The deal includes a potential 100% buyout structure, exchanging operational control for equity in Ultra.
- The partnership provides critical funding but shifts control to Ultra immediately.
- Appia's long-term value is dependent on drill results, metallurgical data, and NI 43-101 resource milestones at the PCH ionic clay-carbonatite property.
Appia Rare Earths & Uranium Corp. (CSE: API | OTCQB: APAAF | FSE: A010) has finalized a C$2.78 million financing and 50/50 partnership with Ultra Rare Earth Inc., advancing the PCH Project in Brazil’s Goiás State. Under the deal, Ultra acquires a 50% stake in Appia Brasil, the subsidiary holding the project, and commits up to US$6 million to fund drilling, a mineral resource estimate, and a prefeasibility study (PFS).
Table of Contents
The PCH property—short for _“Projeto Cachoeira”_—lies in the Tocantins Structural Province, one of South America’s most prospective frontiers for ionic clay and carbonatite-hosted rare earths. CEO Tom Drivas called the partnership “a jumpstart,” emphasizing accelerated drilling and early-stage feasibility.
Breaking Down the Transaction
Under the agreement, Ultra becomes project operator and takes a majority vote on the five-member technical committee. Appia and Brazilian partner Antonio Vitor Junior each retain 25% interests and will be carried through the PFS. Appia also issued 5.56 million units at C$0.50 per share (half-warrants exercisable at C$0.70 until 2027).
If the PFS is completed, Ultra can acquire 100% of Appia Brasil by granting Appia and Antonio each a 25% equity stake in Ultra, effectively transferring operational control in exchange for equity.
Company Profiles
Appia Rare Earths & Uranium Corp. is headquartered in Toronto, Ontario, focused on high-grade rare earths and uranium in Canada (Alces Lake, Saskatchewan) and Brazil (PCH Project). The company has no current revenue, but maintains a strong exploration balance sheet and a diversified rare-earth–uranium portfolio. Major shareholders include CEO Tom Drivas, who holds a significant insider position, along with Canadian institutional and retail investors.
Ultra Rare Earth Inc., a private Canadian company based in Toronto, focuses exclusively on Brazilian rare-earth exploration and processing. It is led by mining entrepreneur Don Hains, P.Geo., and supported by a network of investors active in green-technology minerals. Ultra aims to establish vertically integrated rare-earth operations spanning exploration, separation, and supply to magnet makers.
What’s Accurate — and What’s Risky
The partnership injects critical funding into PCH but shifts operational control to Ultra almost immediately. The structure resembles a staged divestiture more than a joint venture, with Appia’s eventual upside tied to Ultra’s corporate valuation.
Technically, the project’s dual geology—ionic clays overlaying carbonatitic breccia—is attractive but unproven at industrial scale. Metallurgical recoveries, grade continuity, and permitting hurdles in Brazil remain major variables.
Market and Stock View
Appia trades near C$0.50, with a market cap of roughly C$47 million. Shares rallied on Brazilian optimism, but long-term value depends on PCH drill results, metallurgical data, and NI 43-101 resource progress. Without those milestones, momentum remains speculative.
REEx Take — Cash Now, Questions Later
This transaction gives Appia much-needed capital and momentum, but at the cost of control. For investors, the key is whether Ultra delivers a compliant resource and viable process route by the PFS stage. Until that happens, the partnership looks more like a strategic bridge than a value catalyst.
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Appia’s shares were trading at around .27, not .50 on Nov. 3rd. An even better bargain!