Canada-based, Brazil-focused Resouro Strategic Minerals on Friday started trading on the ASX in Sydney, following an A$8-million initial public offering (IPO).
Resouro raised the cash by issuing 16-million CDIs at A$0.50 each, with a ratio of one CDI for one share, resulting in a post-IPO market capitalisation of A$46.1-million.
By late afternoon, Resouro traded at A$0.67 a share.
“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,” said CEO Chris Eager.
The company’s main asset is its 90% ownership in the Tiros rare earth element (REE) and titanium project in Minas Gerais, Brazil.
Eager said Tiros was being advanced at a time when demand for REE continued to grow in response to the electrification and decarbonisation of the global economy.
“Tiros is an exciting asset located in a Tier-1 mining jurisdiction.
Brazil, hosts some of the world’s largest REE reserves, making it a potential major supplier globally. We look forward to accelerating our drilling programme to enhance our understanding of the magnitude and grade potential of the Tiros project,” he said.