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Highlights:

  • Nautica to acquire high-grade Brazilian rare earth assets from Verde’s subsidiary, Oby
  • The transaction involves 2 billion shares issued to Verde shareholders
  • Nautica plans IPO on ASX and renaming to Oby Critical Minerals Limited post-completion

Verde Agritech Ltd (TSX: NPK) (OTCQX: VNPKF) and Nautica Holdings Limited (ACN 647 075 401) have entered into a Share Sale Agreement (SSA), facilitating the acquisition of high-grade magnetic rare earths exploration assets located in Brazil. The deal involves the transfer of these assets from Verde’s subsidiary, Oby Rare Earths Pty Ltd (Oby), to Nautica Holdings.

This strategic move allows Verde to realize value for its shareholders and provides Nautica with the resources to advance its exploration efforts. Nautica, an Australian unlisted public company with AUD $1 million in available cash, will allocate these funds toward preparations for its initial public offering (IPO) on the Australian Securities Exchange (ASX) and advancing the project.

The rare earth exploration assets, discovered by Verde through a reassessment of historical drill data, are located in Brazil and consist of three primary targets: Nau de Guerra, Bálsamo, and Alto da Serra. These targets together contain a maiden mineral resource estimate of 1.35 billion tons, with an average grade of 3,437 parts per million (ppm) Total Rare Earth Oxides (TREO) and 793 ppm Magnet Rare Earth Oxides (MREO). The exploration assets are expected to be crucial as demand for critical minerals rises globally.

Under the terms of the agreement, Nautica will issue 2 billion shares at $0.01 per share to Verde’s shareholders on the Record Date. Upon completion of the transaction, Nautica will have approximately 2.24 billion shares on issue. Following this, Nautica plans a share consolidation on a 1 for 45 basis and intends to rename itself Oby Critical Minerals Limited.