Resouro Strategic Metals To Drill For Rare Earth In Brazil Following ASX Debut

Resouro Strategic Metals Inc (ASX:RAU) (CVE:RSM) started trading on the ASX earlier this month after raising A$8 million from investors.

The Canadian-listed Brazilian rare earth play raised the funds via the issue of CHESS Depositary Interests (CDIs) at an issue price of A$0.50 per CDI.

The highly oversubscribed offer received strong support from Australian institutional investors, including Resouro’s existing shareholders.

Tiros Project

Resouro is focused on the discovery and development of critical mineral resources, via its 90% ownership interest in the Tiros Project.

Tiros is a rare earth elements (REE) and titanium project covering an area of ~450 square kilometres in the Minas Gerais State, one of the leading mining jurisdictions in Brazil.

Targeted drill program

Funds raised from the offer will largely be applied towards progressing exploration activities including a targeted drill program.

This is aimed at delineating a JORC-compliant mineral resource.

The company will also undertake chemical and metallurgical test work to determine scoping level requirements.

Broad range of skills

Resouro has an experienced board and management team in place with a broad range of skills in the resource industry.

CEO Chris Eager is a mining engineer with 35 years of experience in the mining industry.

Eager was a co-founder of Monterrico Metals PLC which unlocked significant value in the Peruvian Rio Blanco copper project that was acquired in 2007 at a valuation of ~US$200 million.

He also co-founded Asia Energy PLC and CoalMont Ltd.

Complementary to current listing

Eager said: “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’s leading project, Tiros, is an exciting asset located in a Tier-1 mining jurisdiction.

 “We look forward to accelerating our drilling program to enhance our understanding of the magnitude and grade potential of the Tiros project.”

Rare earth demand

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.

This is expected to continue as countries seek to achieve their net-zero carbon emission targets.

Brazil hosts some of the world’s largest rare earth elements reserves, making it a potential major supplier globally.

 

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