Brazilian Rare Earths Limited (ASX: BRE) has taken significant steps towards unlocking shareholder value, announcing the issuance of its Notice of Meeting and a short-form prospectus in connection with the proposed demerger of Alurion Resources Limited (ALU). Brazilian Rare Earths Limited is engaged in the exploration and development of rare earth and critical minerals projects in Brazil. Concurrently, Alurion, a newly formed company set to control the Amargosa Bauxite-Gallium Project, has lodged its initial public offering (IPO) prospectus with ASIC.
Under the proposed demerger, eligible BRE shareholders are slated to receive approximately 0.5607 Alurion shares for each BRE share held at the in-specie record date. The Alurion IPO aims to raise between A$30 million and A$50 million, offering shares at A$1.05 each. A Pro-Rata Priority Offer for Alurion shares is available to eligible BRE shareholders, with applications open from June 15 to June 29, 2026. Shareholders will also have an opportunity to participate in a Top-Up Offer for any shares not taken up under the Priority Offer.
This strategic demerger and IPO are designed to establish Alurion as a focused bauxite and critical minerals development company with its own dedicated board, management team, and capital structure. This move will enable Brazilian Rare Earths to concentrate its efforts on advancing its leading rare earth and critical minerals portfolio. BRE Managing Director and CEO Bernardo da Veiga stated this is an “important value-creation event” that provides shareholders with direct exposure to Alurion’s Amargosa bauxite-gallium opportunity, while maintaining exposure to BRE’s rare earth developments. Shareholders are strongly encouraged to review the Demerger Documents and Alurion Prospectus and to vote on the Demerger Resolution at the General Meeting scheduled for July 10, 2026. The expected admission of Alurion to the Official List of ASX is set for July 29, 2026.
