Resouro Strategic Metals Inc. (ASX:RAU) (CVE:RSM) Binding Agreement Signed For Acquisition Of Mineral Rights

(MENAFN- ABN Newswire)

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:
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