Investing.com – Shares of Tactical Resources dropped in early trading on Thursday, as the rare earth elements miner made its debut on the Nasdaq Capital Market after going public through a blank-check acquisition.
In exclusive comments, CEO Ranjeet Sundher said the tie-up with special purpose acquisition vehicle Plum Acquisition III Corp gives the company access to “the market where our project, potential partners and natural investor base are located.”
Vancouver-based Tactical Resources has been looking to build a U.S.-focused rare earths platform anchored by its Peak Project in Texas. The project is described by Tactical Resources as one of the only hard rock, direct-to-leach rare earth opportunities in the U.S. The company’s development strategy includes advancing permitting for a modular processing facility, continuing metallurgical development, and evaluating opportunities to expand its portfolio.
Sundher said Tactical Resources is working “toward becoming part of a domestic mine-to-magnet supply chain.”
“Our objective is not simply to demonstrate that rare earths are present at Peak — it is to show a credible pathway from the material already sitting at the site into a usable rare-earth product,” Sundher said.
The comments come as the U.S. and other major global economies have push to promote the production of rare earths, the critical minerals used in everything from solar panels and high-tech weapons to electric vehicles and mobile phones.
Rare earths played a central role in recent trade negotiations between the U.S. and China. In June, Beijing expanded export restrictions on miners and processors of these materials in the U.S., as a response to a move by Washington to label some Chinese firms as aiding China’s military.
U.S. officials have been particularly adamant that G7 nations, which account for some 60% of global demand for critical minerals, need to urgently reduce their exposure to China’s supplies. China has carved out a central role in worldwide supply chains, with Group of Seven advanced economies — apart from Japan — either heavily or exclusively reliant on the country for rare earths. China refines between 47% and 87% of copper, lithium, cobalt, graphite and rare earths, according to International Energy Agency data cited by Reuters.
Sundher said Washington’s direction on rare earths has been “remarkably consistent,” viewing the minerals as “an economic and national-security issue, not simply a mining issue.”
“The broader policy objective is increasingly clear: the U.S. needs a resilient mine-to-magnet supply chain that reduces dependence on China,” Sundher said.
“What I think is particularly important is that the focus is moving beyond simply identifying domestic resources. The government ultimately needs projects that can demonstrate a realistic pathway to processing, separation and usable material. That is exactly why we have been so focused on advancing the metallurgy at Peak.”
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