Brazilian Rare Earths Limited (ASX: BRE) today announced significant developments concerning the proposed demerger of Alurion Resources Limited (ASX: ALU), a newly formed company set to control the Amargosa Bauxite–Gallium Project in Bahia, Brazil. BRE, a company focused on advancing its rare earth and critical minerals portfolio, stated it has issued its Notice of Meeting and a short-form prospectus, termed the Demerger Documents. Concurrently, Alurion has lodged its prospectus with ASIC for an initial public offering (IPO), aiming to raise between A$30 million and A$50 million at A$1.05 per Alurion share.
The demerger and IPO are strategically designed to establish Alurion as a dedicated bauxite and critical minerals development company with its own independent board, management team, and capital structure. This move will allow BRE to sharpen its focus on its primary rare earth and critical minerals assets. 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. Additionally, these shareholders are invited to participate in the Priority and Top-up Offers as part of Alurion’s IPO.
The Alurion IPO, which seeks to issue between 28,571,429 and 47,619,048 shares, includes a Pro-Rata Priority Offer for eligible BRE shareholders, with the offer period running from June 15 to June 29, 2026. A Shortfall Offer, comprising a Top-Up Offer and Broker Firm and Institutional Offers, will follow for any unsubscribed shares. BRE’s General Meeting is scheduled for July 10, 2026, where shareholders will vote on the Demerger Resolution. Subject to approval, the in-specie distribution of Alurion shares is expected on July 23, 2026, with Alurion anticipated to be admitted to the Official List of ASX on July 29, 2026.
