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- Combined firm to have $589 Million pro forma enterprise value
- Tactical Resources operates rare earth metals mine in Texas
Tactical Resources Corp., a mining company focused on rare earth elements, has agreed to go public on the Nasdaq stock market through a merger with a blank-check firm.
After the transaction with Plum Acquisition Corp III, the combined company will have a pro forma enterprise value of $589 million, according to a statement on Friday that confirmed a Bloomberg News report.
Once the deal with the special purpose acquisition company, or SPAC, is completed, Tactical Resources will trade on the Nasdaq under the symbol TREO.
Founded in 2018, Vancouver-based Tactical Resources explores and develops rare earth elements — a group of 17 metals essential for defense technology, electric vehicles and semiconductors, among other uses. China’s dominance of the global supply for rare earth elements has emerged as a geopolitical risk, spurring countries including the US and Australia to develop alternative sources.
China recently introduced a new regulation of the sector that could tighten supplies and elevate prices.
“We want to disrupt the supply chain,” Kuljit Basi, president of Tactical Resources, said in an interview. “In the longer term, we’re certainly looking to work with the US government to help build that refining capacity in America and so on.”
Tactical Resources will use proceeds from the deal to finance construction of a processing facility at the Peak Project, a rare earth minerals mine near El Paso, Texas. Tactical Resources has exclusive access to the mine and plans to acquire the project area in the future.
“We’re looking to fast track production to become the next producer of rare earth elements in America,” Basi said.
Plum Acquisition’s predecessor, Alpha Partners Technology Merger Corp., raised almost $283 million in an initial public offering in 2021. In December, Alpha Partners announced it would liquidate after not completing a merger deal. Later that month, it reversed that decision after being approached by groups seeking to acquire the interests of the sponsor, according to a statement at the time.
Tactical Resources is currently listed on the TSX Venture Exchange under the ticker RARE.
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