Critical Minerals Firm Taps High-Grade Iron Opportunity for Early Revenues in Brazil

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Atlas Lithium Corp. (ATLX:NASDAQ), a company focused on lithium development in Brazil, announced that its 30%-owned subsidiary, Atlas Critical Minerals Corp. (JUPGF:OTCQB), is expected to begin generating revenue from its Iron Quadrangle Project in the fourth quarter of 2025. This milestone is part of Atlas's broader diversification strategy and reflects progress within its critical minerals portfolio.

The Iron Quadrangle Project is located in Brazil's Minas Gerais state, a historically significant mining district. Instead of building a standalone facility, Atlas Critical Minerals entered into a strategic arrangement with a local independent iron ore company that already operates a processing plant. Under this partnership model, Atlas Critical Minerals will deliver run-of-mine iron ore to the facility, where it will be upgraded into sinter feed, a high-quality iron ore product used in steelmaking. The company will receive payments for the raw material as well as a share of revenue from the processed product.

Atlas Critical Minerals acquired the mineral rights to the Iron Quadrangle Project in 2020. After conducting geological work and a drilling campaign that covered about 10% of the area, the company published its first technical report in 2022 under the U.S. SEC's Regulation S-K, Item 1300. By May 2024, it had secured a 10-year operational license from the State of Minas Gerais and, in May 2025, it obtained a mining concession from Brazil's Ministry of Mines and Energy.

Atlas Critical Minerals' portfolio now includes approximately 55,057 acres of iron ore mineral rights in Brazil. Its broader land package across all mineral types totals more than 218,000 hectares. In addition to iron ore, the company is advancing projects focused on rare earth elements, titanium, graphite, and uranium.

Iron Ore's Balancing Act in a Shifting Market

According to an August 26 feature from Azo Mining, iron ore prices have hovered between US$96 and US$110 per ton since late 2024. Despite economic headwinds and falling steel output in China, improved investor sentiment and easing trade tensions between major economies contributed to a modest recovery in iron ore futures. Azo Mining noted that "spot iron ore prices recently rebounded to around US$102–US$102.05 per ton" and highlighted speculation around China's seasonal construction demand and government stimulus as partial drivers of this stability.

Environmental regulations and the global shift toward decarbonization further influenced market dynamics. Discovery Alert stated that "ores with 65%+ iron content are projected to command widening premiums over the 62% benchmark," potentially reaching US$15 to US$20 per ton by 2028. Demand for value-added products like direct reduction-grade pellets was also expected to remain strong, with price premiums ranging from US$45 to US$60 per ton.

Analysts Back Atlas Lithium's Low-Cost Path to Production with Upbeat Valuations

In a July 14 research note, Heiko Ihle of H.C. Wainwright maintained Atlas Lithium as one of the firm's "Top Picks for 2025," setting a price target of US$18 per share. The report cited a potential return of 349% from the US$4.01 share price at the time. Ihle emphasized the company's low operating costs of US$489 per ton of lithium concentrate and its US$80 million in strategic offtake and investment agreements with key industry participants. These arrangements were cited as support for the company's planned Phase 1 production of 150,000 tons per year and potential Phase 2 expansion to 300,000 tons annually.

"This project complements the firm's Neves project, as we expect the near-term cash flow to support Atlas' long-term strategy of becoming a leading player in global energy transition," Ihle wrote, referring to the company's parallel development of Atlas Critical Minerals. He also noted that Atlas's low-cost structure positioned it to deliver strong long-term returns while providing geopolitical diversification.

On August 5, Jake Sekelsky of Alliance Global Partners also reaffirmed a Buy rating following the release of Atlas Lithium's definitive feasibility study (DFS) for the Neves project. Although the firm revised its lithium price assumptions, it maintained a US$20 price target, reflecting a projected 254% return from the US$5.65 share price at the time.

Sekelsky described the DFS as "an inflection point on the road to lithium production" and highlighted the low direct capital expenditure requirement of US$58 million, as well as favorable project economics. The DFS outlined a net present value of approximately US$540 million and an internal rate of return of 145% using an SC5.5 lithium concentrate price of US$1,700 per ton. Even at a lower SC5.5 price of US$1,200 per ton, the project carried an NPV of US$260 million — more than twice Atlas's enterprise value at the time.

According to the note, Atlas had already invested US$30 million into project development, with a US$40 million prepayment facility expected to fund the bulk of the remaining capital requirements. Sekelsky concluded that "the limited capex remaining coupled with Neves' status as a shovel-ready project place Atlas in pole position to become the next lithium producer in Brazil's lithium valley." He added that the project's modular processing facility design offered flexibility for future expansion and that additional funding opportunities were likely, given the strength of the DFS

Turning Rock into Revenue: Strategic Pathways Forward

The Iron Quadrangle operation is one of multiple active revenue-generating or near-term revenue projects in Atlas Critical Minerals' pipeline. The company also operates a quartzite business with reported margins of up to 35% and has disclosed that near-term cash flow from both operations is expected to help fund exploration activities across its critical minerals portfolio. 

With multiple projects advancing in parallel, Atlas Critical Minerals has drawn attention for its early-stage production model. According to the company's August 2025 investor presentation, it controls the largest portfolio of critical mineral rights in Brazil and has designed its operations to generate cash flow without heavy upfront capital requirements. Its management team includes professionals with experience managing large-scale mining projects and navigating Brazil's regulatory and permitting landscape.

Atlas Lithium's partial ownership of Atlas Critical Minerals gives it exposure to a broad set of commodities outside lithium, potentially smoothing revenue fluctuations from any single market. The parent company is concurrently advancing the Neves Lithium Project, where it has completed a Definitive Feasibility Study showing an after-tax net present value of US$539 million and an internal rate of return of 145%. The lithium project has received the necessary permits, and a dense media separation plant has already been delivered to Brazil.

Ownership and Share Structure

According to Atlas Lithium, its management and insiders own about 27% of the company's shares. Strategic partners, including Mitsui & Co., hold another roughly 11%. Institutional investors own about 10%. The rest, about 54%, is in retail.

Refinitiv reports that Atlas has 19.58M outstanding shares and 11.43M free float traded shares. Its market cap is US$117.3M. Its 52-week range is US$3.54–US$12.48 per share.

In terms of Atlas Critical Minerals, according to the company, about 30% of Atlas Critical Minerals is owned by insiders and management.

Its market cap is ~US$29 million with 38.9 million shares outstanding. It trades in a 52-week range of US$0.40 and US$1.47.