Vancouver-based mineral exploration and development company. Tactical Resources Shares of Plum Acquisition III Corp (TSXV:) rose Friday on news that it plans to list on the Nasdaq through a merger with a special purpose acquisition company, Plum Acquisition III Corp (NASDAQ:).
Shares of Tactical Resources Corp. surged 120% on the TSX Venture Exchange in afternoon trading Friday.
The proposed merger and listing is expected to be completed in the fourth quarter of 2024, subject to customary closing conditions, including regulatory, judicial and shareholder approvals, the company said in a statement.
The enterprise value of the proposed entity would be $589 million, assuming Tactical Resources is delivered on a cash-free, debt-free basis.
The Peak Project, a flagship asset of Tactical, is a rare earth elements-focused project strategically located southeast of El Paso, Texas, which owns the rights to acquire the enriched rare earth elements tailings and stockpiled material extracted from the Sierra Blanca quarry.
The project’s favorable location in a mining-friendly region provides extensive infrastructure, including easy access to highways, power, water and rail lines. The company believes the project will enable it to become a significant producer of rare earth elements in the country.
The project is certainly one of the few direct-to-extract rare earth mineral mining projects in the world to have been granted initial quarry operating permits. The project also has an exclusive option to purchase SBQ’s mining lease and associated infrastructure for the Peak Project.
“Today marks an important day and an exciting milestone for Tactical Resources,” said Ranjit Sunder, CEO of Tactical Resources. “We believe this business combination with Plum will enable us to advance our growth strategy and form strategic alliances that enhance shareholder value.”
Sunder noted that Tactical Resources intends to use the capital raised to transform domestic and international rare earth supply chains and reduce America’s dependence on critical mineral resources abroad.
North America is in dire need of alternative sources of rare earth elements as China continues to dominate the global market, supplying nearly 70% of the world’s rare earth elements.
With a geographic focus in the United States, Tactical Resources is focused on supplying a range of rare earth elements to the U.S. market to support the development of cutting-edge technologies with applications in semiconductors, electric vehicles, advanced robotics, and most importantly, national defense.
The company already has an operational mine in Texas with rare earth element-rich tailings, demonstrating test results and potential future success.
“While others may focus on manufacturing individual end products such as magnets, our focus is on the most critical raw materials needed to feed the overall rare earth ecosystem. Given the advanced infrastructure close to our project, what sets us apart is that we believe we will not need the billions of dollars and decades of time typically required in the mining industry to bring our project into production. We believe this commercial integration will help position Tactical Resources to become a significant producer of rare earth elements in the United States,” said Sunder.
“At Plum, we are committed to partnering with companies with strong business profiles and experienced management teams, and Tactical Resources stood out to us because of its strong history of success by its management team and a very important mission to advance national security,” said Kanishka Roy, CEO of Plum.
“With the United States increasingly dependent on Chinese sources of rare earth elements, we believe Tactical Resources is poised to play a critical role in the critical semiconductor supply chain, clean energy future, and national defense industry,” Roy added.