Canadian-based mineral exploration and development company Resouro has completed its A$3.24m capital raise led by Regal Funds Management ahead of its ASX dual listing. Resouro is focused on the discovery and advancement of economic mineral projects in Brazil and owns 33% stake (with the option to buy 90%) in the Tiros Titanium and Rare Earths Project.
The private placement offering of 10,107,403 common shares in the capital of the Company was at a price of $0.28 per common share for aggregate gross proceeds of C$2,830,000 (~A$3.24 million). The private placement offering represents an 87% premium to Resouro’s previous capital raising at $0.15 per common share in June 2023. The common shares issued in connection with the Offering are subject to a statutory hold period of four months.
What does the funding mean for Resouro?
Resouro Chief Executive Officer and major shareholder Chris Eager said the firm was thrilled to welcome Regal as a cornerstone shareholder to the register, which it joins with prominent institutional and family office resources focused investors, alongside existing shareholders.
“We are extremely pleased to welcome additional investment from three high caliber mining investment funds into Resouro. This is a great endorsement of the Tiros project and the work our team is doing on the ground in Brazil to drive shareholder value,” Eager said.
“The additional capital raised will be put to good use to boost the proposed drill and metallurgical test-work program to progress the Tiros Rare Earths and Titanium Project. We look forward to continually updating the market as results materialise. We thank all our investors for their continued support for Resouro,” Chris Eager further commented.
Resouro intends to use net proceeds from the Offering to advance exploration at the Tiros Titanium-REE Project and Novo Mundo Gold Project in Brazil, for general working capital and to pursue a secondary listing on the Australian Securities Exchange by the end of 2023, subject to market conditions and being able to satisfy the appropriate ASX listing criteria.
What next for Resouro?
Chris Eager said the ASX dual listing would complement Resouro’s current TSX-V (Canadian) and FSE (German) listings and allow the company to better service the large Australian investor base currently supporting Resouro. “Through the past two capital raisings we have found that investors in Australia have demonstrated a deep understanding of the rare earths market, and the large scale and quality of Resouro’s Tiros Project,” Chris Eager said.
“After completion of the latest capital raising, Resouro now has a very strong share register including specialist mining funds and prominent mining investors in Australia,” Eager added.
“In addition, we believe that the ASX has an active retail investor base with a strong following in the small resources sector. To this end, we believe a listing on the ASX would greatly assist in building shareholder value through increased market exposure and trading liquidity. Resouro will continue to update the market in respect of its secondary listing,” Eager said.
The Company engaged law firm Thomson Geer, lead manager Taylor Collison and Australian Company Director Justin Clyne as representatives to assist Resouro with the ASX application.
