Resouro is expanding its Brazilian critical minerals hunt. Pic via Getty Images
Resouro adds ground to huge Tiros critical minerals project
Mining
share
- Resouro Strategic Metals signs binding agreement to acquire 100% ownership and title over three mineral rights next to its Tiros rare earths and titanium project.
- The agreement has been signed via Resouro’s subsidiary Tiros Minerais Estratégicos Mineração and the titles cover a total 4,744 hectares contiguous with the Sao Gotardo block of the Tiros Project.
- The new areas add to the project’s existing 45,000-plus hectares and give Resouro more coverage over geologically prospective portions of Brazil’s Capacete Formation.
Special Report: One of the world’s largest rare earths and titanium projects is about to get even bigger now that Resouro Strategic Metals has agreed to acquire additional mineral licences adjacent to its Tiros project.
Via its subsidiary Tiros Minerais Estratégicos Mineração, Resouro (ASX:RAU, TSXV:RSM) has entered into a binding agreement to buy 100% ownership and title over three mineral rights totalling 4,744 hectares south of and contiguous with the Sao Gotardo block of its Tiros project.
With a maiden mineral resource estimate of 1.7 billion tonnes, Tiros is the largest JORC combined REE and titanium deposit of its type known in the world, with the JORC Resource from only 7% of the current tenements.
The new areas expand the project’s existing 45,000-plus hectares and give Resouro more coverage over geologically prospective portions of a mineral-rich region within Brazil’s Minas Gerais state.
Commenting on the agreement, President, CEO, Director and Founder, Chris Eager said: “With this acquisition, we are consolidating our presence in the highly prospective Capacete Formation and securing assets for future development.
“This highly strategic acquisition gives us a greater footprint in the area and the contiguous nature of the assets adjacent to Resouro’s Sao Gotardo block could prove highly beneficial in the event of a future discovery.”
Strong rerate potential
Resouro has been on a roll of good news, with the binding agreement coming less than a month after Pitt Street Research released a detailed report noting Resouro is significantly undervalued compared with peers in the Brazilian rare earths sector.
Even before this week’s news the research house said it would be reasonable to put Resouro’s market cap at $100m, up from current $35m.
The report came a week after metallurgical test work results released on a representative 50kg sample of Tiros ore indicated Resouro metallurgy partner Altilium had the potential to achieve the highest rare earth extractions known in the industry.
One of the results achieved 96.2% of the hotly demanded magnetic rare earth elements – the highest rare earth extraction rate known to date.
This article was developed in collaboration with Resouro Strategic Metals, 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.
