BRE advances Brazil bauxite-gallium project through A$50 million IPO

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Brazilian Rare Earths (BRE) has moved a step closer to developing its Amargosa Bauxite-Gallium Project in Brazil after its newly created subsidiary, Alurion Resources Limited, raised approximately A$50 million (USD 24.5 million) through an initial public offering (IPO) in Australia.

The company issued 47,619,048 fully paid ordinary shares at an offer price of A$1.05 (USD 0.74) per share, with the proceeds earmarked to accelerate development of the USD 119 million project.

The funding will support land acquisitions, technical studies, environmental licensing, exploration activities, community programmes, safety initiatives and equipment purchases as Alurion advances the project.

Shareholder-backed demerger clears path

The IPO follows the demerger of the Amargosa Bauxite-Gallium Project from Brazilian Rare Earths into Alurion Resources. At a general meeting held on July 10, 2026, 99.94 per cent of shareholders voted in favour of the proposal.

Alurion is expected to join the Australian Securities Exchange (ASX) on July 30, 2026, with trading scheduled to begin on August 3, 2026, under the ticker ALU, subject to regulatory approvals and listing conditions.

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Following the IPO, BRE will retain a strategic 16 per cent stake in Alurion.

Focus shifts to critical minerals growth

Commenting on the IPO, BRE Managing Director and Chief Executive Officer Bernardo da Veiga said the successful capital raise allows the company to sharpen its focus on advancing its rare earth and critical minerals portfolio.

He said the Monte Alto Scoping Study, expected in August 2026, will be the company's next major milestone as it progresses its critical minerals province in Bahia.

Project combines bauxite and gallium potential

The Amargosa project, located in the Brazilian state of Bahia, has undergone more than a decade of exploration, initially by Rio Tinto and more recently by Brazilian Rare Earths.

The site lies around 160 kilometres by road from Porto de Enseada, providing access to established bulk export infrastructure serving global bauxite markets.

By combining bauxite resources with gallium potential, the project is positioned to benefit from growing demand for both aluminium raw materials and critical minerals used in advanced technologies, while strengthening Brazil's position as an emerging supplier of strategic mineral resources.

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