Tactical Resources, a Canada-based mining company focused on rare earth elements (REEs), is set for a Nasdaq listing through a merger with Plum Acquisition Corp. III, a special purpose acquisition company (SPAC).
This combined business would have a pro forma enterprise value of $589m, provided Tactical Resources is delivered on a “cash free, debt free basis”.
The proposed merger is anticipated to conclude in the fourth quarter of 2024, contingent on clearances from regulators, court, and shareholders.
Currently, Tactical Resources is developing the Peak Project located southeast of El Paso, Texas, US.
This project holds the rights to acquire REE-enriched tailings and materials stockpiled from the Sierra Blanca Quarry.
Additionally, the company has an exclusive option to purchase the mining lease and related infrastructure for the Peak Project from SBQ.
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Tactical Resources CEO Ranjeet Sundher said: “We believe that this business combination with Plum will enable us to advance our growth strategy and form strategic alliances that enhance shareholder value.
“Tactical Resources intends to use the capital raised to transform both domestic and international rare earth element supply chains and lessen America’s reliance on overseas critical mineral resources.
“While others may be focusing on the manufacturing of singular end-products such as magnets, our focus is on the more critical raw ingredients needed to fuel the overarching rare earth elements ecosystem. We believe that this business combination will help position Tactical Resources to become a significant rare earth elements producer in the United States.”
The investment highlights for Tactical Resources include its growing REE mining asset and company presence in the US, significant geopolitical and supply implications that could reduce dependence on China for REEs.
It also includes an operational mine in Texas with proven REE-enriched tailings and strong financial prospects with low initial capital expenditures for production.
