Brazilian Rare Earths to demerge Amargosa Bauxite Project

Brazilian Rare Earths (ASX:BRE) announced plans to demerge its 100%-owned Amargosa Bauxite-Gallium Project into a newly formed, ASX-listed entity named Alurion Resources.

The separation aims to establish Alurion as a dedicated bauxite and critical minerals development company with its own independent board, management team, and capital structure.

The spin-off will allow BRE to maintain its core focus on advancing its primary rare earth and critical minerals portfolio in Bahia, Brazil.

According to the company’s market announcement, the demerger is designed to drive capital discipline and execution focus by allowing Alurion to raise and deploy capital directly into the Amargosa development plan without competing for BRE’s internal resources.

Eligible BRE shareholders are set to receive direct exposure to the project via an in specie distribution of Alurion shares.

Following the initial public offering, BRE intends to retain a strategic cornerstone stake of approximately 17% to 18% in the new company, subject to final allocations.

The Amargosa asset represents a large-scale bauxite province backed by over a decade of exploration, initially led by Rio Tinto.

It boasts a JORC-compliant mineral resource estimate of 568 million tonnes, which includes a high-grade component of 98 Mt of direct-ship bauxite grading 41.9% total available alumina.

Positioned against an increasingly concentrated global supply chain—where Guinea currently supplies roughly 70% of China’s imported bauxite feedstock—Alurion aims to leverage this established resource to become a critical, reliable supplier of high-quality metallurgical bauxite.

At the time of reporting, Brazilian Rare Earths’ share price was $5.55.