Resouro Advances with Private Placement to Fund 1.4 Billion Tonne Tiros Resource
Resouro Strategic Metals is on track to close its non-brokered private placement within the week, aiming to fund critical engineering work for its Tiros Titanium-Rare Earths Project in Brazil.
- Private placement expected to close imminently pending regulatory approvals
- Funds targeted to advance engineering and Preliminary Economic Assessment at Tiros
- Placement conducted under ASX Listing Rules with no related party participation
- Securities subject to four-month resale restriction
- Tiros project holds significant titanium dioxide and rare earth oxides resources
Private Placement Update
Resouro Strategic Metals Inc. has announced it is nearing the close of its non-brokered private placement, with subscription agreements received and regulatory approvals underway. The company anticipates completing the raise within the next week, subject to final approval from the TSX Venture Exchange and other regulatory bodies. This capital raise is being conducted under the company’s placement capacity pursuant to ASX Listing Rules 7.1 and 7.1A, and notably excludes participation from related parties or their associates.
Purpose of the Raise
The net proceeds from the placement are earmarked primarily to advance the engineering program essential for the Preliminary Economic Assessment (PEA) of Resouro’s flagship Tiros Titanium-Rare Earths Project located in Minas Gerais, Brazil. This step is critical in moving the project closer to development and potential production. Additionally, funds will support general working capital needs, ensuring operational flexibility as the company progresses its exploration and development activities.
Project and Resource Highlights
The Tiros project is a substantial mineral asset comprising 28 concessions over 497 square kilometers in one of Brazil’s most infrastructure-friendly states. Resouro’s latest Mineral Resource Estimate reports 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. These figures underscore the project's potential to become a significant supplier of critical minerals, which are increasingly vital for clean energy technologies and advanced manufacturing.
Regulatory and Market Considerations
While the placement is progressing smoothly, it remains contingent on regulatory approvals, including from the TSX Venture Exchange. The securities issued will carry a four-month resale restriction, aligning with applicable securities legislation. Importantly, the offering is not registered under the U.S. Securities Act and cannot be sold within the United States or to U.S. persons, limiting its investor base geographically but maintaining compliance with international regulations.
Looking Ahead
Resouro’s management, led by CEO Christopher Eager, is focused on leveraging this capital injection to advance the Tiros project through its next development milestones. The company’s strategic positioning in the rare earths and titanium sector, combined with a robust resource base, places it well to capitalize on growing demand for these critical materials. However, as with all mining ventures, the path forward will require navigating technical, regulatory, and market challenges.
Bottom Line?
Resouro’s imminent capital raise marks a pivotal step toward unlocking the value of its Tiros project amid rising demand for critical minerals.
Questions in the middle?
- What is the total amount expected to be raised in the private placement?
- How soon after closing will the Preliminary Economic Assessment be completed?
- What are the key regulatory hurdles remaining before the placement can close?
