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Vancouver-based rare earths developer Tactical Resources (TSXV: RARE) is set to go public on the Nasdaq stock market through a merger with Plum Acquisition Corp. III (NASDAQ: PLMJ), a US-listed blank-check firm.
Tactical is currently developing the Peak project located southeast of El Paso, Texas, with the aim of becoming the next rare earth elements (REE) producer on American soil. Its flagship project contains the exclusive rights to acquire REE-enriched tailings and stockpiled materials extracted from the Sierra Blanca quarry.
Since its inception in 2018, Tactical has been focusing on the 17 minerals that are essential for defense technology, electric vehicles and semiconductors.
The miner views Peak as one of only a few hard-rock direct-leach-extractable projects in the world, with initial quarry operating permits already in place. The quarry is currently operational and produces ballast material for the Union Pacific railway.
“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 CEO Ranjeet Sundher said in a news release.
Upon completion of the merger with Plum, expected in the fourth quarter of 2024, the combined company would have a pro forma enterprise value of $589 million, assuming Tactical is delivered on a cash-free, debt-free basis. It will trade under the symbol TREO.
Plum, a special purpose acquisition company (SPAC), had previously pursued a merger in 2021 through its predecessor, but that deal and subsequent listing did not materialize.
Tactical said it 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. China, the main US rival, currently produces nearly 70% of the world’s REEs, it noted.
“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,” Sundher added.
“We want to disrupt the supply chain,” Kuljit Basi, president of Tactical Resources, said in an interview with Bloomberg. “In the longer term, we’re certainly looking to work with the US government to help build that refining capacity in America.”
Shares of Tactical Resources exploded on Friday, trading at C$0.58 apiece for a 132% gain for the session. Its market capitalization is C$20.7 million ($15.3 million).
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