Resouro Strategic Metals Inc. (ASX: RAU) – Gaining Global Attention Through Metallurgical Innovation and Strategic Partnerships - REE and Titanium Opportunities.
- Noel Ong
- 5 days ago
- 8 min read
Announcement
From Prospectus to Progress: 🆕 IPO Review
ASX Code: RAU
Listing Date: 14 June 2024
IPO Offer Price: $0.50
Current Share Price (as at 27th of June 2025): $0.155
Market Capitalisation (as of 27th of June 2025): ~$15.54 million
Industry Group: Materials
A New Entrant in Strategic Minerals, Already Making Waves - REE and Titanium Story.
Resouro Strategic Metals Inc. (ASX: RAU) is a recently listed company, having debuted on the ASX on 14 June 2024. While many early-stage mineral exploration companies spend their first year positioning and reshaping project narratives, Resouro seem to be generating technical momentum and government-level recognition.
At the centre of the Company’s trajectory is the Tiros Titanium and Rare Earth Elements Project, located in Minas Gerais, Brazil—a jurisdiction well regarded for its mining pedigree and infrastructure (Figure 1). What sets Tiros apart is not just the scale of its mineral resource but also the Company’s commitment to metallurgical innovation and environmental responsibility.
Figure 1: Location of Tiros Project: Minas Gerais, Brazil. Resouro’s mineral rights holdings at Tiros North, Tiros Central, São Gotardo and Campos Altos. (source: RAU)
🔷 Strategic Milestones Since Listing
Since coming to market, Resouro has built on its pre-listing foundations. A few key developments over the past year include:
1. Selection for Brazil’s BNDES & FINEP Joint Support Plan
On 15 June 2025, Resouro was selected by BNDES (Brazil’s National Bank for Economic and Social Development) and Finep (Financiadora de Estudos e Projetos) as one of 56 projects in Brazil’s critical minerals advancement strategy. This program, backed by BRL 5 billion (~US$900 million), provides tailored support for strategic minerals initiatives. The endorsement not only validates Tiros' potential but also opens the door to funding mechanisms for demonstration plant development and pilot metallurgical testing.
Commenting on Resouro’s selection to participate in the Joint Support Plan,
Executive Chair (Chile), Mr. Chris Eager, commented:
“With this support, we can advance our metallurgical testing, finalize an optimal flowsheet for the extraction of titanium and rare earth elements from Tiros and proceed with the development of a demonstration plant. This milestone allows us to maintain momentum in our technical work without unnecessary delays, paving the way for the successful development of Tiros as a leading project in the supply of critical minerals essential for the green energy transition, while also contributing to long-term economic development in Brazil.”
2. Pioneering Metallurgical Processing – FSAL Technology
A core part of Resouro’s value proposition lies in the Fusion Sulphuric Acid Leach (FSAL) process, developed in collaboration with YM Serviços. This sustainable approach transforms over 90% of feed mass into saleable products (Figure 2)—including titanium, iron, alumina, and rare earths—while eliminating the need for tailings dams, a major risk mitigant especially in Brazil’s context post-Mariana disaster.
The FSAL process involves:
Applying controlled heat to the mineralized feed to enhance its physical and mineralogical properties;
Comminution to an effective grind size for acid digestion;
Filtering and removing silica;
pH adjustments to precipitate products of titanium, iron and alumina; and
Rare earth precipitation from the Rare Earths Oxide (“REO”) pregnant acid solution
Figure 2: Tiros FSAL Met Proof-of-concept Test Work (source: RAU)
Resouro’s Chief Executive Officer, Alistair Stephens, commented:
"The technical results we are seeing from the Fusion Sulphuric Acid Leach process are exceptionally encouraging. This innovative approach maximises recoveries of titanium, iron, alumina, and rare earths while addressing one of the most critical challenges in mining today—the management of mineral processing waste. The FSAL process significantly enhances the metallurgical performance of the Tiros mineralisation, upgrades titanium to a higher-value product, and has the potential to eliminate conventional tailings generation. This development underscores Resouro’s technical leadership and our commitment to advancing the Tiros Project with efficiency, integrity, and environmental stewardship. "
3. MagBras and Environmental Impact Assessments
The Company has aligned with Brazil’s MagBras Initiative to integrate the Tiros Project into a downstream rare earth permanent magnet production chain. Resouro’s involvement in a network of 26 strategic partners—spanning mining groups, offtakers, and end-users in the magnet and electric motor industries—is a smart and deliberate move.
This isn’t just about aligning with market players; it’s about embedding themselves into the heart of the rare earth value chain. By doing so, Resouro is laying the groundwork to become more than just a supplier—they're positioning to be a serious contributor to the vertical integration of this critical supply chain. This is the kind of strategic engagement that often defines future leaders in emerging markets.
Environmental Impact Assessments are underway, led by Sete Soluções e Tecnologia Ambiental, further demonstrating the Company’s early ESG commitments.
4. World-Class Resource Backing the Strategy (Figure 3)
Total Measured & Indicated Resource:
1.4 billion tonnes @ 12% TiO₂ and 4,000 ppm TREO
Includes 165 million tonnes of contained titanium dioxide (TiO₂)
Includes 5.5 million tonnes of total rare earth oxides (TREO)
Includes 1.5 million tonnes of magnet rare earth oxides (MREO)
Figure 3: Tiros MRE upgrade – more than half of Brazil’s known titanium resources in one deposit (source: RAU)
High-Grade Zone:
103Mt @ 23% TiO₂ and 9,100 ppm TREO (Figure 4)
Among the highest-grade undeveloped REE-titanium deposits globally.
Figure 4: Technical MRE* detail worth noting of one of the world’s largest undeveloped TiO2 and REE deposits. Note: *Refer ASX announcement 9 April 2025: Tiros Measured and Indicated Resource increased by 37% to 1.4 billion tonnes at 12% TiO 8 2 and 4,000 ppm TREO (source: RAU)
Geographical Advantage:
Located in Minas Gerais, Brazil — a globally respected mining jurisdiction (Figure 5)
Over 28 tenements covering 497 km² with <10% explored to date.
Figure 5: Tiros Project Location and Infrastructure Map (source: RAU)
Scalability & Exploration Upside:
Only 8% of total tenement explored, offering strong growth potential.
Homogeneous, flat-lying mineralisation ideal for low-cost extraction.
Critical Magnet Metals Present:
Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy), Terbium (Tb)
Key inputs for EVs, wind turbines, and defence technologies
JORC & NI 43-101 Compliant:
NI 43‑101 Compliance - Resouro’s Tiros Project has a full NI 43‑101 Technical Report (effective 18 July 2024), prepared by Qualified Persons and independently audited following Canadian standards.
Maiden JORC Mineral Resource Estimate - On 18 July 2024, Resouro published its maiden JORC‑compliant Mineral Resource Estimate: 1.7 billion tonnes at 3,900 ppm TREO, 1,100 ppm MREO, and 12 % TiO₂. Resource estimate independently verified and compliant with global reporting standards.
This places Tiros as one of the largest known undeveloped TiO₂ and REE deposits globally, containing 165Mt of titanium dioxide and 5.5Mt of total rare earth oxides, including 1.5Mt of critical magnet metals like Nd, Pr, Dy, and Tb.
🔷Use of IPO Funds – Summary (Actual vs Budget)
According to the December 2024 Quarterly Activities Report, Resouro deployed its IPO funds in line with its outlined strategy, primarily directing capital towards advancing the Tiros Project. Key expenditures included drilling and metallurgical test work, resource definition, ESG assessments, and early-stage feasibility activities.
While the report does not provide a detailed table comparing actual vs. budgeted figures, the narrative confirms that spending has been consistent with the use-of-funds outlined in the IPO prospectus.
Importantly, the Company notes that remaining funds are sufficient to carry out the next phase of development, including pilot plant testing and further stakeholder engagement, indicating disciplined capital management in its early post-listing phase.
🔷Share Price Performance Since Listing
Resouro Strategic Metals (ASX: RAU) made its ASX debut on 14 June 2024 at an IPO price of $0.50. Since then, the share price has gradually eased, recently trading at $0.17 as of June 2025 (Figure 6).
While the trajectory reflects broader market caution toward early-stage resource stocks, it’s worth noting that the Company has been steadily delivering on its milestones—from a major JORC resource upgrade to securing backing under Brazil’s BNDES/FINEP Joint Support Plan.
For those following the strategic minerals narrative, the current share price may represent less of a verdict and more of a disconnect—one that could narrow as Resouro continues to de-risk and unlock value at its globally significant Tiros Project.
Figure 6: RAU’s Share price as of 19 June 2025 (source: ASX)
Samso Concluding Comments
Resouro Strategic Metals Inc. has, within its first 12 months on the ASX, established its flagship project as a globally relevant TiO₂-REE resource, introduced industry-defining metallurgical solutions, and aligned itself with Brazil’s critical minerals investment programs.
It’s still early days, and investors must temper expectations with the usual risks associated with development-stage mining. However, what Resouro is building at Tiros—technically, environmentally, and geopolitically—suggests a company that understands not just where the market is heading but also how to engineer its way there.
Resouro has a few hurdles to overcome, and one of the most important is the question of jurisdiction. The next hurdles will be to tackle the technical aspects, which hopefully will be more straightforward. Personally, I see Resouro as a REE story rather than a Titanium narrative. There is no secret that the REE market is not good currently, and that is reflected in the company's share price. I assume that is the case; otherwise, the sell-off is from issues that are not obvious to the retail market.
From an investor's point of view, there is no rush to take positions in the company. For me, this is a wait-and-see, but with so many other opportunities in the ASX, I would not think that this will be noticed.
The Samso Way – Seek the Research
At Samso, we often talk about the need to focus beyond the headline resource numbers and look into the strategic vision of a company. In Resouro’s case, what’s compelling is how they’ve hit the ground running with meaningful government engagement, ESG-driven metallurgical strategy, and global leadership backing. These are not just updates—they reflect structural progress in both commercial viability and sustainability alignment.
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