Why did Union Star Metals (ASX:USM) sell its Brazilian subsidiary?

Union Star Metals (ASX:USM) sold its Brazilian subsidiary, Scanty Mineração Ltda, to complete the rationalisation of its legacy assets. The company stated the divestment allows it to focus entirely on advancing its gold and silver projects in Nevada and Idaho.

What are the financial details of the sale for Union Star Metals (ASX:USM)?

Union Star Metals (ASX:USM) will receive $200,000 in upfront cash, 40,000,000 ordinary shares in Harvest Minerals, and up to $300,000 in deferred milestone payments.

How does this deal affect buyer Harvest Minerals?

Harvest Minerals acquires 100% of Scanty Mineração Ltda from Union Star Metals (ASX:USM) by issuing 40,000,000 ordinary shares and paying $200,000 upfront.

What is the remaining project pipeline for Union Star Metals (ASX:USM)?

Union Star Metals (ASX:USM) is pivoting its strategy away from rare earths to focus on its precious metals portfolio. The company expects to concentrate its resources on developing its gold and silver exploration projects located in Nevada and Idaho, USA.

How did the market react to Union Star Metals (ASX:USM) making this announcement?

Following the divestment announcement, the Union Star Metals (ASX:USM) share price traded down at $0.009. This deal comes after other strategic moves by Union Star Metals (ASX:USM), including the sale of the Leonora Gold Project and optioning the Kalgoorlie Project.

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Union Star Metals sells Brazilian portfolio for $200,000

Written by Brie CarterPublished Jul 22, 2026, 1:38 AM

Union Star Metals executed a binding agreement to sell 100% of Scanty Mineração.
Union Star received $300,000 in milestone payments.
The divestment completes portfolio rationalisation to focus entirely on US gold and silver projects.

Union Star Metals (ASX:USM) has agreed to sell its Brazilian rare earth subsidiary for $200,000 in upfront cash.

This deal follows previous portfolio changes, including selling the Leonora Gold Project and optioning the Kalgoorlie Project.

Buyer Harvest Minerals will also issue 40,000,000 ordinary shares to Union Star upon transaction completion.

Harvest will further assume $1.5 million in deferred acquisition payments and royalty obligations owed to original vendors.

Following the announcement, the Union Star Metals share price was down at $0.009.

Union Star stated the divestment completes the rationalisation of its legacy assets.

The business is now focused on advancing its prospective gold and silver projects in Nevada and Idaho.

Union Star Metals sells Brazilian portfolio for $200,000

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