Resouro Strategic Metals has amended its private placement terms, aiming to raise CAD 3 million to fund engineering work for its Tiros Titanium-Rare Earths Project in Brazil.
- Amended private placement of 15 million units at CAD 0.20 each
- Each unit includes one common share and half a warrant exercisable at CAD 0.30
- Gross proceeds of up to CAD 3 million targeted
- Funds to advance engineering towards Preliminary Economic Assessment for Tiros
- Offering subject to regulatory approvals and expected to close by September end
Resouro Revises Capital Raise Strategy
Resouro Strategic Metals Inc. has announced an amendment to the terms of its previously disclosed non-brokered private placement, now proposing to raise up to CAD 3 million by issuing 15 million units priced at CAD 0.20 each. This adjustment reflects the company's ongoing efforts to secure funding necessary to advance its flagship Tiros Titanium-Rare Earths Project in Brazil.
Structure and Incentives of the Offering
Each unit in the placement comprises one common share and half a warrant, with each full warrant exercisable at CAD 0.30 for a period of three years from issuance. This structure offers investors potential upside participation beyond the initial share price, incentivizing support for the company's development plans. The offering is expected to close in a single tranche by the end of September 2025, pending receipt of all necessary regulatory approvals, including from the TSX Venture Exchange.
Purpose of the Capital Raise
The net proceeds from this placement will primarily fund the engineering program critical to advancing the Preliminary Economic Assessment (PEA) for the Tiros project. This step is essential to de-risking the project and moving it closer to potential development. Additionally, funds will support general working capital needs, ensuring operational continuity as the company progresses its exploration and development activities.
Significance of the Tiros Project
Located in Minas Gerais, Brazil, the Tiros project boasts a substantial mineral resource estimate, including 165 million tonnes of titanium dioxide and 5.5 million tonnes of total rare earth oxides within a measured and indicated resource of 1.4 billion tonnes. This positions Resouro as a notable player in the rare earths and titanium sector, with the project’s infrastructure advantages enhancing its development potential.
Regulatory and Market Considerations
The offering excludes participation by related parties and includes a four-month resale restriction on the securities issued. While the company is confident in closing the placement, it remains subject to regulatory approvals and market conditions. Investors should note that none of the securities are registered under the U.S. Securities Act, limiting their sale within the United States.
Bottom Line?
As Resouro moves to secure critical funding, the market will watch closely how this capital raise shapes the next phase of the Tiros project’s development.
Questions in the middle?
- Will the private placement attract sufficient investor interest to meet the $3 million target?
- How will the potential dilution from warrants impact existing shareholders?
- What are the timelines and key milestones for the Preliminary Economic Assessment following this funding?