Resouro’s $3M Capital Boost: Can It Deliver on Rare Earths Ambitions?

Capital Raise Completion

Resouro Strategic Metals Inc. has successfully closed the final tranche of its non-brokered private placement, issuing 10 million units at CAD$0.20 each and raising an additional CAD$2 million. This brings the total capital raised under the placement to CAD$3 million from 15 million units issued. Each unit includes one common share and half a warrant, exercisable at CAD$0.30 over three years, providing investors with potential upside participation.

Strategic Investor Joins

A notable highlight of this capital raising is the participation of Jose Luis Manzano, a prominent Argentine entrepreneur with extensive experience across mining, energy, and infrastructure sectors. His involvement through Integra Capital not only brings financial support but also valuable industry connections, particularly in South America’s mining landscape. Manzano’s track record includes investments in silver, zinc, lithium, and rare earth elements, aligning well with Resouro’s strategic focus.

Advancing the Tiros Project

The funds raised will be directed primarily towards advancing engineering and metallurgical programs critical to the Preliminary Economic Assessment (PEA) of the Tiros Titanium-Rare Earths Project in Minas Gerais, Brazil. This project boasts a significant 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. The PEA is a key milestone that will help define the project's economic viability and attract further investment.

Shareholder Confidence and Capital Structure

Resouro’s Executive Chairman and CEO, Christopher Eager, emphasized the strong support from both new and existing shareholders, some of whom increased their stakes during the placement. The issuance of shares under ASX Listing Rules 7.1 and 7.1A reflects the company’s disciplined approach to capital management. Post-placement, the company’s fully diluted securities stand at approximately 131 million, positioning Resouro to execute its next phase of technical and economic studies with a solid financial footing.

Looking Ahead

With this capital injection and strategic partnership, Resouro is well-positioned to advance the Tiros project through critical development stages. The company’s focus on rare earth elements and titanium aligns with growing global demand for these materials, essential in technology and clean energy sectors. Investors will be watching closely for upcoming technical results and the PEA outcomes, which will provide clearer insights into the project’s potential and Resouro’s growth trajectory.