Australia-based mining company Alderan Resources has executed a sale purchase agreement to acquire 100% shares in Parabolic Lithium for A$3.5m ($2.3m).

Parabolic holds the right to acquire a 100% interest in seven lithium exploration projects located in the mineral resource-rich state of Minas Gerais, Brazil.

The projects cover 472 km2 of area and contain 24 exploration licences in seven areas, Curral de Dentro, Minas Novas, Carai, Catuji, Itaipe, Itambacuri and Governador Valadares.

All seven projects are located in the Lithium Valley, located immediately to the south of the Eastern Lithium Belt in the Brazilian state of Minas Gerais.

Recently, Sigma Lithium discovered the 77.034Mt Grota do Cirilo project and Latin Resources its 45.2Mt Salinas project in the Lithium Valley.

Alderan has raised $1.75m through a placement at $0.006 per new share to finance further exploration at the Brazilian mining projects.

Alderan managing director Scott Caithness said: “The acquisition of Parabolic’s large and highly prospective granted tenement package in an established lithium district in Brazil is a very exciting development for Alderan and represents the successful culmination of project generation focused on securing high potential critical metals exploration opportunities.

“Brazil’s Eastern Lithium Belt is one of the world’s premier lithium provinces with operating lithium mines and recent major discoveries made by Sigma Lithium Corporation and Latin Resources Ltd.

“Parabolic has an established in-country team with significant experience in identifying lithium prospective areas and has offered to assist Alderan to fast track its on-ground exploration activities which are planned to commence in Q4, 2023.”

Alderan said that its Curral de Dentro, Minas Novas, Carai, Catuji, Itaipe, Itambacuri and Governador Valadares projects are located in the Lithium Valley region.

The company said that the Minas Gerais state produces 75% of the world’s niobium, and 53% of Brazil’s iron ore and is also a large producer of gold, zinc and phosphate.

In addition, the Brazilian state is home to more than 300 operational mines, said Alderan.

The deposits produce minerals including spodumene, beryl, niobium, tantalum, tin and tourmaline, which have been identified by the Geological Survey of Brazil.