Tactical Resources Corp Targets Nasdaq Listing Through Merger

Investing.com — Rare earth elements miner Tactical Resources Corp (TSXV:RARE) has announced a regulatory filing regarding its planned listing on the Nasdaq stock market through a merger with a blank-check firm.

In a statement on Tuesday, Vancouver-based Tactical Resources called the filing with the Securities and Exchange Commission an "important step" in their proposed flotation via a tie-up with the special purpose acquisition vehicle Plum Acquisition III Corp (NASDAQ:PLMJ).

Tactical Resources, a mineral explorer founded in 2018, focuses on US-made rare earth elements essential for semiconductors, electric vehicles, advanced robotics, and the defense sector. The company believes the merger will bolster its capacity to produce critical materials for these technologies.

Specifically, Tactical Resources indicated that proceeds from the merger would finance the expansion of operations at its flagship Peak Project mine near El Paso, Texas. The company claims exclusive access to the site and the option to acquire the project area in the future, asserting that the Peak Project will position it as a significant rare earth elements producer in the U.S.

The proposed merger with Plum implies a pro forma enterprise value of $589 million, as stated by Tactical Resources in August.

Countries, including the US and Australia, are looking to increase rare earth material production to counter China's dominance in the sector, which controls about 70% of the global output, according to Tactical Resources.

"Supported by the funds we intend to raise in connection with the Business Combination, alongside the expected exposure to key investors, we anticipate being well positioned to address a critical need in the rare earth element supply chain in the West," said CEO Ranjeet Sundher in a statement.