Appia Earns Initial 10% Legal and Beneficial Interest in the PCH Project

Rhea-AI Summary

Appia Rare Earths & Uranium Corp. (CSE: API, OTCQX: APAAF, FSE: A0I0, MUN: A0I0, BER: A0I0) has achieved a 10% ownership interest in Appia Brasil Rare Earths Mineracao Ltda, which holds the PCH Project in Goiás State, Brazil. The company spent over $1 million USD to meet the requirements of the Quotaholders Agreement. Appia plans to issue 500,000 shares to Beko by June 19, 2024, and Beko will receive a 1% net smelter returns royalty. Appia aims to reach a 70% stake in Appia Brasil by issuing an additional 1.5 million shares and investing $9 million USD over the next four years. If they achieve 60% ownership, they will need to issue another $1.25 million USD in shares to gain an additional 10% interest. Upon reaching 70% ownership, Appia and Antonio Vitor Junior will enter into a joint venture to further develop the property.

Positive

• Appia achieved a 10% ownership interest in Appia Brasil.
• The company completed significant work with a $1 million USD budget.
• Maiden Mineral Resource Estimate on two targets was achieved.
• Initial desorption testing confirmed the ionic clay characterization.
• Four new highly prospective target zones were identified.
• The regolith developed over the Ipora Granite shows significant enrichment of Heavy Rare Earth Oxides.
• Appia has plans to issue 500,000 shares to Beko by June 19, 2024.

Negative

• Appia needs to issue 1.5 million additional shares and spend $9 million USD over the next four years to maintain its 70% interest.
• A further $1.25 million USD in shares is required to gain an additional 10% interest after achieving 60% ownership.
• Issuance of 500,000 shares will dilute existing shareholder value.
• Beko will be granted a 1% net smelter returns royalty, which could impact future profits.

Toronto, Ontario--(Newsfile Corp. - June 12, 2024) - Appia Rare Earths & Uranium Corp. (CSE: API) (OTCQX: APAAF) (FSE: A0I0) (MUN: A0I0) (BER: A0I0) (the "Company" or "Appia") announced today that, further to its press release dated December 4, 2023, Appia has earned its initial 10% legal and beneficial ownership interest in Appia Brasil Rare Earths Mineracao Ltda (the "Appia Brasil") the Brazilian company that holds the PCH Project (the "Property") located in the Tocantins Structural Province of the Brasília Fold Belt, Goiás State, Brazil.

Stephen Burega, President stated, "We have accomplished an amazing amount of work over the past year with a modest budget of $1 million USD. We achieved many milestones including a maiden Mineral Resource Estimate (MRE) on our first two targets, Target IV and Buriti Zone (See press release dated March 1^st, 2024); we completed initial desorption testing confirming the ionic clay characterization of the mineralization; and we identified an additional four (4) new highly prospective target zones covering an area of over 2,400 hectares while re-confirming that the regolith developed over the Ipora Granite presents significant enrichment of Heavy Rare Earth Oxides (HREO), indicative of Ionic Adsorption Clay (IAC) rare earth elements (REE) deposits. The impressive HREO results identified across multiple zones of homogeneous mineralization highlights the true potential of the PCH project."

Pursuant to the Quotaholders Agreement among Appia, Beko Invest Ltd. ("Beko") and Antonio Vitor Junior ("Antonio") dated July 20, 2023 (the "Quotaholders Agreement"), which governs the ongoing exploration and development of the Property, Appia has expended in excess of US$1 million as required by the Quotaholders Agreement to earn its initial 10% interest in Appia Brasil. Appia will be issuing the second tranche of 500,000 shares to Beko on or before June 19^th, 2024. Beko will be granted a 1% net smelter returns royalty (the "1% NSR") in the Property. Appia will have a right of first refusal to acquire the 1% NSR. The 500,000 shares to be issued will be subject to a four month and one day hold period from the date of issuance.

Appia can maintain its 70% interest in Appia Brasil by issuing an aggregate of a further 1.5 million common shares of Appia to Beko and spending a further approximately US$9 million on the Property over a period of a further four (4) years after which Appia will have earned a 60% interest in Appia Brasil. If Appia earns its 60% interest, it will then be obligated, within 90 days of earning its 60% interest, to issue a further US$1,250,000 of common shares of Appia to Beko to earn a further 10% interest in Appia Brasil. The number of shares to be issued to earn the further 10% shall be that number of common shares of Appia equal to the number arrived at by dividing US$1,250,000 by the greater of the average closing price of the common shares as quoted on the Canadian Securities Exchange (the "CSE") for the 30 trading days immediately preceding the announcement by Appia of its intention to earn the additional 10% interest and the discounted market price of the common shares of Appia based on the last closing price immediately preceding the announcement.

Once Appia has earned its 70% interest in Appia Brasil, Appia and Antonio will enter into a joint venture with respect to the further exploration and development of the Property (the "Joint Venture") with Appia holding a 70% interest and Antonio holding a 30% interest in Appia Brasil in accordance with the terms of the Quotaholders Agreement. Reference is made to the December 4, 2023 press release for further particulars relating to the Joint Venture.

About Appia Rare Earths & Uranium Corp. (Appia)

Appia is a publicly traded Canadian company in the rare earth element and uranium sectors. The Company holds the right to acquire up to a 70% interest in the PCH Ionic Adsorption Clay Project (See June 9^th, 2023 Press Release - Click HERE) which is 40,963.18 ha. in size and located within the Goiás State of Brazil. (See January 11^th, 2024 Press Release - Click HERE) The Company is also focusing on delineating high-grade critical rare earth elements and gallium on the Alces Lake property, and exploring for high-grade uranium in the prolific Athabasca Basin on its Otherside, Loranger, North Wollaston, and Eastside properties. The Company holds the surface rights to exploration for 94,982.39 hectares (234,706.59 acres) in Saskatchewan. The Company also has a 100% interest in 13,008 hectares (32,143 acres), with rare earth elements and uranium deposits over five mineralized zones in the Elliot Lake Camp, Ontario.

Appia has 136.3 million common shares outstanding, 145 million shares fully diluted.

Cautionary note regarding forward-looking statements: This News Release contains forward-looking statements which are typically preceded by, followed by or including the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-Looking statements are not a guarantee of future performance as they involve risks, uncertainties and assumptions. We do not intend and do not assume any obligation to update these forward-looking statements and shareholders are cautioned not to put undue reliance on such statements.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

For more information, visit www.appiareu.com.

As part of our ongoing effort to keep investors, interested parties and stakeholders updated, we have several communication portals. If you have any questions online (X, Facebook, LinkedIn) please feel free to send direct messages.

To book a one-on-one 30-minute Zoom video call, please click here.

Contact:

Tom Drivas, CEO and Director 
(c) (416) 876-3957 
(e) tdrivas@appiareu.com 

Stephen Burega, President
(c) (647) 515-3734
(e) sburega@appiareu.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/212641

FAQ

What recent achievement did Appia announce regarding the PCH Project?

Appia announced it has earned an initial 10% ownership interest in Appia Brasil Rare Earths Mineracao Ltda, which holds the PCH Project in Goiás State, Brazil.

How much did Appia spend to earn its 10% interest in the PCH Project?

Appia spent over $1 million USD to earn its initial 10% interest in the PCH Project.

When will Appia issue shares to Beko as part of the Quotaholders Agreement?

Appia plans to issue 500,000 shares to Beko on or before June 19, 2024.

What is required for Appia to maintain a 70% interest in Appia Brasil?

Appia must issue an additional 1.5 million shares and spend $9 million USD over the next four years to maintain a 70% interest.

What additional obligation does Appia have after reaching a 60% interest in Appia Brasil?

Appia must issue $1.25 million USD in shares to gain an additional 10% interest after achieving 60% ownership.

What is the stock symbol of Appia Rare Earths & Uranium Corp.?

The stock symbol of Appia Rare Earths & Uranium Corp. is APAAF.