(Bloomberg) -- Tactical Resources Corp., a mining company focused on rare earth elements, has agreed to go public on the Nasdaq stock market through a merger with a blank-check firm, according to people familiar with the matter.
After the transaction with Plum Acquisition Corp III, the combined company will have a pro forma enterprise value of US$589 million, said the people, who asked not to be identified because the information wasn’t public yet. Once the deal with the special purpose acquisition company, or SPAC, is completed, Tactical Resources will trade on the Nasdaq under the symbol TREO, they said.
Founded in 2018, Vancouver-based Tactical Resources explores and develops rare earth elements — a group of 17 metals essential for defense technology, electric vehicles and semiconductors, among other uses. China’s dominance of the global supply for rare earth elements has emerged as a geopolitical risk, spurring countries including the U.S. and Australia to develop alternative sources.
Tactical Resources will use proceeds from the deal to finance construction of a processing facility at the Peak Project, a rare earth minerals mine near El Paso, Texas. Tactical Resources has exclusive access to the mine and plans to acquire the project area in the future.
Plum Acquisition’s predecessor, Alpha Partners Technology Merger Corp., raised almost $283 million in an initial public offering in 2021. In December, Alpha Partners announced it would liquidate after not completing a merger deal. Later that month, it reversed that decision after being approached by groups seeking to acquire the interests of the sponsor, according to a statement at the time.
Tactical Resources is currently listed on the TSX Venture Exchange under the ticker RARE.
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