Resouro Strategic Metals Inc.:: Binding Agreement Signed for Acquisition of Mineral Rights
Toronto, Canada - Resouro Strategic Metals Inc. (ASX:RAU) (CVE:RSM) (FRA:8TX) (OTCMKTS:RSGOF) is pleased to announce that on September 6, 2024 (September 7, 2024 Australian time) its subsidiary, Tiros Minerais Estrategicos Mineracao Ltda ("TMEL" or the "Buyer"), entered into a Binding Agreement with Marcelo Augusto Martins Neto ("Seller") to acquire 100% ownership and title over three (3) mineral rights contiguous with the Sao Gotardo block of Resouro's Tiros Rare Earths and Titanium Project in the state of Minas Gerais, Brazil ("Tiros Project" or the "Project").Highlights
- Three (3) minerals rights ("Mineral Rights") totaling 4,744 hectares located south of, and contiguous with, the Sao Gotardo block of the Tiros Project.
- The Capacete Formation, associated with the Tiros Project, covers most of the Mineral Rights associated with this Binding Agreement.
Commenting on the Binding Agreement, President, CEO, Director and Founder, Chris Eager said:
"We are pleased to announce that we have successfully acquired key assets within the Capacete Formation, enhancing our strategic position in this promising region. This acquisition is strategically located adjacent to Resouro's Sao Gotardo block of the Tiros Project. The integration of these assets into our portfolio is anticipated to offer significant advantages, particularly in the context of potential future discoveries."
Acquisition Terms
Material Terms of the Binding Agreement include:
- Initial Payment: Within 5 days from the date of confirmed acceptance of this transaction by the TSX Venture Exchange ("TSXV"), or up to 30 days from the purchase confirmation, payment of (1) CAD 50,000 in cash and (2) CAD 50,000 in Resouro shares based on the 20-day volume weighted average price ("VWAP") of Resouro shares which occurred immediately prior to the date of acceptance of the transaction.
- Milestone 1: After the purchase confirmation, the Buyer shall drill at least six (6) holes within the mineral rights perimeter. The drilling campaign should report at least three (3) holes showing a minimum of 20 continuous meters of intercepts with over 2,000 ppm Total Rare Earth Oxides ("TREO") within two years of the purchase confirmation date.
o The payment for Milestone 1 will consist of (1) CAD 50,000 in cash and (2) CAD 50,000 in Resouro shares based on the same 20-day VWAP as that used for the Initial Payment.
o If the drill holes are not completed in the two (2) years from the purchase confirmation date, the Buyer must pay in full the amount stipulated under this Milestone.
- Milestone 2: After the Buyer completes sufficient exploration work to issue a JORC Compliant report with an inferred resource of 100 million tonnes of at least 2,000 ppm TREO within three (3) years from the purchase confirmation date, the Buyer will make the following payment:
o The payment for Milestone 2 will consist of (1) CAD 50,000 in cash and (2) CAD 50,000 in Resouro shares based on the 20-day VWAP of Resouro shares which occurred immediately prior to the date of the milestone 2 deadline.
o If Milestone 2 is not met within the three (3) years from the purchase confirmation date, the Buyer must pay, in full, the amount stipulated under this Milestone.
- Milestone 3: After the Buyer has completed a JORC Mineable Compliant Report, or up to one year after the payment related to Milestone 2 is made, the final payment to complete the acquisition of the mineral rights will be made by the Buyer, as follows:
o The payment for Milestone 3 will consist of (1) CAD 100,000 in cash plus (2) CAD 100,000 in Resouro shares based on the 20-day VWAP of Resouro shares which occurred immediately prior to the date of the milestone 3 deadline.
- Conditions precedent:
o Completion of legal due diligence by the Buyer within 45 days of signature of the Binding Agreement; and
o Presentation by the Seller of:
- The mineral rights acquisition contract; and
- Completion by the Agencia Nacional de Mineracao ("ANM") of the mineral rights transfer to the Seller; and
o Execution by the Buyer and Seller of all customary agreements and contracts associated with transactions of this kind in Brazil.
- Guarantee from the Seller:
o The Seller warrants and guarantees that in the event that any of the mineral rights related to this transaction are impacted by judicial or administrative procedures and/ endorsements, the transaction will be terminated, in full, and the Seller will reimburse the Buyer the full amount of all cash paid and all shares issued by the Buyer.
Resouro will fund the acquisition price from its existing cash reserves.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/19E1389E
About Resouro Strategic Metals Inc.:
Resouro Strategic Metals Inc. (ASX:RAU) (CVE:RSM) (OTCMKTS:RSGOF) (FRA:8TX) is a Canadian-based mineral exploration and development company focused on the discovery and advancement of economic mineral projects in Brazil, including the rare earth elements and titanium Tiros Project and the Novo Mundo and Santa Angela gold projects.
The Tiros Project, located in northern Minas Gerais, Brazil, is an exploration project focused on rare earth elements and titanium covering an area of approximately 450 km2. The Tiros Project comprises 17 exploration permits, and one exploration permit application held by the Company's Brazilian subsidiary; and 6 exploration permits and one exploration permit application that have been validly assigned to the Company's Brazilian subsidiary and are awaiting ANM approval. The Company holds, via its wholly owned Brazilian subsidiary, a 90% interest in the Tiros Project and the remaining 10% interest in the Tiros Project is held by RBM Consultoria Mineral Eireli (RBM), an unrelated third-party vendor.
The Novo Mundo Project is located in the Alta Floresta Gold Province close to the northern border of the state of Mato Grosso, central Brazil. Within the licensed area is the small town of Novo Mundo, which is 30km west from the larger town of Guaranta do Norte. It comprises three exploration permits. The Company also has another interest in an exploration permit, being the Santa Angela Project, which is not considered material to the Company's operations. Interests in the Novo Mundo Project and Santa Angela Project are held via the Company's wholly owned subsidiary.
Source:
Resouro Strategic Metals Inc.
Contact:
Chris Eager, CEO chris.eager@resouro.com +44 7388 0579809 Justin Clyne, Director justin.clyne@resouro.com +61 407 123 143 Melissa Hamilton, Media, melissa.hamilton@mcpartners.com.au +61 417 750 274