Resouro Strategic Metals Inc (TSX-V:RMS, OTC:RSGOF, ASX:RAU). today listed on the ASX, with shares 25% higher on debut.
Resouro raised A$8 million (before costs) through the issue of 16,000,000 CDIs at A$0.50 per CDI, with each CDI equating to one share in the company.
This results in a market capitalisation of A$46.1 million.
“We are delighted with the outstanding response to Resouro’s ASX listing. The board sees Resouro’s listing on the ASX as a great opportunity to capture the true value of the company’s assets and is highly complementary to the current listing on the TSXV,” Resouro CEO Chris Eager said.
“On behalf of the board and senior management, I would like to thank all investors for their strong interest in the company. I would also like to personally welcome new shareholders to the company and thank existing shareholders for their continued support throughout the Offer process.”
Focus on critical minerals
Resouro is focused on discovering and developing critical mineral resources.
We spoke with Eager last month about the ASX listing and its focus on developing economic mineral projects in Brazil.
The company holds a 90% ownership interest in the Tiros Project, a rare earth elements (REE) and titanium project located in Minas Gerais State, Brazil. Tiros spans around 450 square kilometres and benefits from nearby world-class infrastructure, including roads, rail, ports, power, water and a skilled labour force.
The funds raised from the IPO will be used to progress exploration activities, including a targeted drill program aimed at defining a JORC-compliant mineral resource. Additionally, the company plans to conduct chemical and metallurgical testwork to determine scoping level requirements.
Depending on the outcomes of these activities, Resouro will start preliminary economic evaluations and undertake preliminary technical studies.
Tiros Titanium and Rare Earths Project.
“Resouro’s leading project, Tiros, is an exciting asset located in a Tier-1 mining jurisdiction,” Eager said.
“Brazil, hosts some of the world’s largest rare earth elements reserves, making it a potential major supplier globally. We look forward to accelerating our drilling program to enhance our understanding of the magnitude and grade potential of the Tiros project.
“Tiros is being advanced at a time when demand for rare earth elements continues to grow in response to the electrification and decarbonisation of the global economy, which we believe will continue as countries seek to achieve their net-zero carbon emission targets.”
Read more on Proactive Investors AU
