The ASX has welcomed its latest rare earths hopeful, with Resouro Strategic Metals listing today following an $8 million initial public offering (IPO).
The IPO was priced at $0.50 per CHESS Depositary Interests (CDI), with 16 million CDIs issued as part of the initiative.
CDIs give ASX investors the same beneficial interests in foreign companies as holding these shares on a foreign exchange. Resouro investors will receive CDIs on a 1 CDI for 1 share basis.
The IPO has resulted in a $46.1 million market capitalisation for Resouro, which is advancing its Tiros rare earth elements (REE) and titanium project in Brazil, with which it holds a 90 per cent stake.
The Tiros project is located in Minas Gerais, Brazil – a state which has become a rare earths bounty for rare earths aspirants. Other explorers in this region include Meteoric Resources, Equinox Resources and Perpetual Resources.
The Tiros project represents 25 mineral concessions totalling 450 square kilometres of ground.
Resouro will use its IPO proceeds to progress a targeted drill program with the aim to delineate a JORC-compliant mineral resource at Tiros.
The company will also be focused on metallurgical testwork and economic valuation and technical studies to come.
Resouro is backed by chief executive officer Chris Eager, a mining engineer with 35 years’ experience that co-founded Monterrico Metals PLC and was influential in the development of the Rio Blanco copper mine in Peru.
“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 TSX V (Toronto Stock Exchange Venture),” Eager said.
“Resouro’s leading project, Tiros, is an exciting asset located in a Tier 1 mining jurisdiction. Brazil hosts some of the world’s largest rare earth elements reserves, making it a potential major supplier globally.
“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.”
Resouro is now listed on the ASX, TSX V, Frankfurt Stock Exchange and the OTC.
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