Resouro Strategic Metals (TSX-V:RSM) closed its first day as an ASX-listed company up 34% last Friday 14 June.
The Vancouver-based explorer lit up the boards at 10:30am AEST under the ticker ‘RAU’ and shares immediately advanced 30%, before gaining further to an intra-day high of $0.69 — a 38% premium over the IPO price of $0.50.
Shares closed the day at $0.67 with around 1.1 million shares changing hands.
Resouro is now listed on the ASX, TSX Venture Exchange (TSX-V:RSM) and the Frankfurt Stock Exchange (FSE:BU9), as well as the Over-the-Counter market in the US (OTC:RSGOGF).
CEO Chris Eager, who is the company’s largest shareholder, told Mining.com.au ahead of the listing that Resouro decided to diversify its listings to Australia because of the lack of liquidity and the level of arbitrage on the TSX Venture Exchange.
On the TSX Venture Exchange, Resouro is currently trading around C$0.56 ($0.84).
The Australian IPO raised $8 million and closed oversubscribed.
Regal Funds Management, Terra Capital and the Flannery Family Office, plus a couple of other family offices, hold about 43% of the share register.
Resouro’s main focus is its 90%-owned Tiros Rare Earths and Titanium Project in the Minas Gerais region of Brazil, where it is currently working to deliver a maiden JORC-compliant resource.
The IPO fully funds Resouro through to completion of a preliminary economic assessment.
The cash raised will be used to deliver an initial resource, undertake chemical and metallurgical testwork and, subject to results, complete preliminary economic and technical studies.
Write to Angela East at Mining.com.au
Images: Resouro Strategic Metals
