Resouro Strategic Metals Inc (TSX-V:RMS, FRA:8TX, OTC:RSGOF, ASX:RAU) has completed the first tranche of an upsized private placement, raising $1.86 million as it advances environmental work required for a preliminary feasibility study (PFS) at its flagship Tiros Titanium and Rare Earth Elements Project in Brazil.
The company increased the non-brokered placement to as much as $2.5 million following strong investor demand, up from the previously targeted $2 million. The placement comprises up to 10 million shares at $0.25 per share, compared with the original 8 million-share offer.
Resouro issued 7.44 million shares at $0.25 each in the first closing, generating gross proceeds of $1.86 million.
The remaining shares are expected to be issued shortly, with details of the second and final closing to be released separately.
Net proceeds will primarily support an environmental program at Tiros, which Resouro described as an essential step towards completing a PFS, while part of the funding will be allocated to general working capital.
The placement remains subject to final TSX Venture Exchange approval and is being undertaken using the company’s capacity under ASX Listing Rule 7.1. No related parties or their associates are participating.
Advancing the Tiros Project
Tiros is Resouro’s flagship titanium and rare earth elements project in Minas Gerais, Brazil, and comprises 28 mineral concessions covering 497 square kilometres.
The project is supported by a JORC-compliant Mineral Resource Estimate and a Preliminary Economic Assessment covering a potential starter operation.
The latest funding is expected to help move the environmental work required ahead of the planned PFS, providing Resouro with additional capital as it progresses the project through further development studies.
About Resouro Strategic Metals
Resouro Strategic Metals is a Canadian mineral exploration and development company focused on mineral projects in Brazil.
Alongside Tiros, the company is advancing the Novo Mundo gold project in Mato Grosso state.