Resouro Strategic Metals’ (ASX:RAU) is trading at 55 cents after listing on the ASX late last week.
Through the IPO process, it raised $8 million for development of its Tiros rare earths project in Brazil, in which Resouro has a 90% stake.
This raising was priced at $0.50 per share.
Resouro is already listed on the TSX.
The Tiros Project is a rare earths and titanium project covering an area of approximately 450 km² in the Minas Gerais State, one of the leading mining jurisdictions in Brazil. Tiros is surrounded by infrastructure including roads, rail, ports, power, water and qualified labour.
The company aims to increase shareholder value by advancing the Tiros project and said funds raised would progress exploration activities including a targeted drill program aimed at delineating a JORC compliant Mineral Resource; chemical and metallurgical test work to determine scoping level requirements; and, preliminary economic evaluation and technical studies.
Resouro CEO Chris Eager said the Board viewed Resouro’s listing on the ASX as an opportunity to capture value of the company’s assets and was highly complementary to the listing on the TSXV.
“Brazil hosts some of the world’s largest rare earth elements reserves, making it a potential major supplier globally,” he said.
“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.”