Brazilian Rare Earths Ltd. (BRE) has revealed its plans to demerge its Amargosa bauxite-gallium project in Bahia, Brazil, into a newly formed standalone company, Alurion Resources Limited.
The proposed demerger is designed to separate two large-scale assets with vastly different development pathways. By establishing Alurion as a dedicated bulk commodity and critical minerals player, BRE can preserve its capital focus on its core rare earth portfolio, while Alurion pursues a fast-tracked commercialisation strategy for Amargosa.
The proposed spin-off will see Alurion list on the Australian Securities Exchange under the ticker ALU, following a capital raise through an IPO targeted to bring in between AU$30 million and AU$50 million.
The Amargosa asset is backed by over a decade of exploration, initially led by Rio Tinto, and boasts a JORC-compliant Mineral Resource Estimate of 568 million tonnes.
This includes a high-grade, direct-ship component of 98 million tonnes, competitive with global benchmarks.
This project comes at a crucial time for global supply chains, where China currently relies on Guinea for roughly 70 per cent of its imported bauxite feedstock.
A recent first-stage Scoping Study outlined a highly efficient, low-capex development pathway.
By mining and shipping bauxite directly without the need for a beneficiation plant or tailings facility, upfront capital expenditure is capped at an estimated US$119 million, yielding a rapid 1.2-year payback period and an after-tax NPV8 of US$630 million.
BRE CEO Bernardo da Veiga said: “The proposed demerger and public listing of Alurion Resources is a disciplined value-unlocking transaction for BRE shareholders and the right structure for the leading Amargosa Bauxite-Gallium Project.
“Establishing Alurion as a dedicated company gives Amargosa the capital focus, specialist leadership and strategic mandate to advance its development pathway.”
Eligible BRE shareholders will receive 0.5607 Alurion shares for every BRE share held, alongside priority subscription rights in the upcoming IPO.
BRE also intends to retain a strategic cornerstone stake of up to 18 per cent in Alurion post-listing.
The prospectus is expected to be lodged in mid-2026, with the official ASX listing slated for two months later.
