• Resouro Strategic Metals intends to list on the ASX in the coming months
  • Once listed, Resouro will also be rubbing shoulders with the Gina Rinehart-backed Brazilian Rare Earths which is currently up 13% on its pre-Christmas IPO price

 

Special Report: The ASX is set to welcome a new Brazil-focused rare earths play in not too distant future with Resouro Strategic Metals seeking to follow in the footsteps of Meteoric Resources and the Gina Rinehart-backed Brazilian Rare Earths.

Shares in Meteoric Resources (ASX:MEI) have more than doubled to 19.5c in the past year, while Brazilian Rare Earths (ASX:BRE) continues to perform strongly since its ASX debut on 21 December, currently trading above its listing price of $1.47/sh.

With its very latest very high-grade results now released on the Toronto Stock Exchange, Resouro Strategic Metals intends to seek admission on the ASX in the coming months.

As it prepares its run at the ASX, Resouro has been gaining impressive support while advancing its large-scale Tiros project in Brazil. It’s also enjoyed a 207% boost to its share price from C$0.14 to C$0.43 on the Toronto Stock Exchange over the past 12 months.

Helping Resouro stand out among the pack of explorers beating a path to South America’s critical mineral riches is its Tiros project.

Latest drilling results from the 477km2 project include 12m @ 8,150ppm total rare earth oxides (TREO) with 1,575ppm high-value magnet rare earths neodymium and praseodymium (NdPr) and 20% titanium oxide (TiO2) from surface.

Another highlight from the auger and aircore campaign was 38m @ 6,444ppm TREO with 1,524ppm NdPr and 17.5% TiO2 from only 40m.

Overall, grade distribution for TREO, NdPr and TiO2 are all skewed towards very high, with 83% of the latest samples having a TREO grade above 3,000ppm, 84% with an NdPr grade of over 500ppm, and 85% at over 10% TiO2.

And the latest assays are just the first of a significant number of drill samples currently in the laboratory for assay.

 

On road to development

Resouro CEO and president Chris Eager said: “We are extremely pleased with the assay results from the recent drilling campaign at Tiros, which demonstrated high grades (TREO, NdPr and TiO2) and thicknesses.

“Drilling to date has consistently demonstrated thick intercepts of high-grade TREO and TiO2. The latest results continue to indicate Tiros could potentially be a globally significant REE and TiO2 project.”         

Resouro has focused its drilling efforts on the Tiros Block which covers 44km2 in the centre of the Tiros project, making up only 9.5% of the total project. Its northern tenements (Tiros North) are also producing excellent results.

The drilling was also completed to provide data for due diligence related to the acquisition of the project.

Resouro more than doubled its footprint on the highly prospective ground in Brazil’s powerhouse mining state of Minas Gerais last October.

Now, as it moves to the next stage of development at Tiros, Resouro has appointed a senior geologist and a community relations co-ordinator to foster positive relationships with local communities.

 

Fired up for an ASX listing

Meanwhile, the float pitch from leading broking house Taylor Collison is expected to point to another ASX-listed rare earths play, MEI and its rapid-fire growth into a mid-tier player.

Resouro is also hoping to benefit from the large arbitrage between the TSX and ASX after its Australian listing – like Patriot Battery Metals (ASX:PMT) which went from 5c/sh to over $17/sh after it listed on the ASX last December.

However, for those looking for a rare opportunity to buy into Resouro ahead of its intended listing on the ASX, there are many licensed brokers in Australia that have direct trading access to the TSXV.

Those include CommSec, Westpac Trading, IG, Saxo Markets, and CMC Markets. The process of opening an account is quite easy and investors can usually start trading within a day.

 

Solid support

While market attention was focused on BRE late last year, Resouro caught the eye of savvy Australian investors including the multi-billion dollar Flannery Family Office and Terra Capital’s Jeremy Bond.

They backed Resouro’s $3.2 million equity fundraising on the TSX Venture Exchange, joining cornerstone investor Regal Funds Management on the register.

And that was before the release of Resouro’s latest assays, all of which bodes well for a strong entrance for its potential listing on the ASX this year.

 

This article was developed in collaboration with Resouro, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Read MoreRare Earths

You might be interested in