Investor Sells $17M Stake in Brazilian Rare Earths Amid Strategic Advancements

Brazilian Rare Earths Limited (ASX: BRE), a key player in the rare earths sector, has been at the center of several notable developments as of early 2026. One of the most recent events involves prominent investor Anastasios Arima offloading 4 million ordinary shares in an off-market transaction valued at A$17 million. This sale, announced around January 21-22, 2026, marks the end of Arima's status as a substantial holder in the company. While this transaction does not impact BRE's operational control or strategic direction, it could enhance the stock's free float and improve trading liquidity on the ASX. BRE's shares were trading around A$4.48 in recent uptrend scans, reflecting positive market sentiment amid broader interest in rare earth commodities.

Complementing this financial news, BRE released promising results from its Scoping Feasibility Study for the Amargosa Bauxite-Gallium project on December 15, 2025. This 100%-owned asset highlights the company's diversification beyond traditional rare earths into critical minerals like gallium, which is vital for semiconductors and electronics. The study underscores the project's potential viability, positioning BRE to capitalize on growing global demand for these materials amid supply chain diversification efforts away from China. Amargosa represents a strategic move to leverage Brazil's rich mineral endowment, including bauxite resources that could support gallium extraction alongside rare earth opportunities.

Earlier explorations have bolstered BRE's portfolio significantly. The company confirmed a district-scale discovery at its Pelé project in March 2024, located 60 kilometers southwest of the flagship Monte Alto site. Pelé boasts an exploration target over 30 times larger than Monte Alto, with initial reconnaissance revealing the largest continuous hard rock monazite cumulate outcrop identified in the Rocha da Rocha province. This fourth greenfields discovery features ultra-high-grade rare earth-niobium-scandium mineralization, confirmed by surface assays exceeding 1% total rare earth oxides. Management plans to accelerate diamond drilling following assays from 11,000 meters of historical Rio Tinto drilling data.

Strategically, BRE is forging partnerships to address processing bottlenecks, a critical challenge for Brazil's rare earth ambitions. The company has collaborated with Carester, a European expert in rare earth refining, to develop downstream capabilities. This aligns with Brazil's positioning as the world's second-largest rare earth reserve holder, yet with limited commercial output beyond Serra Verde. Recent U.S.-Brazil diplomacy, including a $465 million DFC loan to Serra Verde, underscores efforts to counter China's dominance in mining (60%) and processing (90%). BRE's focus on the Volta do Rio Plutonic Suite, spanning 160 kilometers, positions it to unlock substantial endowments.

These developments occur against a backdrop of geopolitical shifts and market dynamics. Brazil's National Rare Earth Strategy aims to convert its reserves into industrial strength, but success hinges on midstream processing scale-up. BRE's advancements, from Pelé's massive outcrops to Amargosa's scoping results and investor activities, signal robust momentum. With analyst ratings holding at 'Hold' and a A$4.50 price target, the company remains a focal point for investors eyeing non-Chinese supply chains. As rare earths underpin clean energy tech, defense, and high-tech manufacturing, BRE's trajectory could play a pivotal role in global diversification.