Strategic Advances in Rare Earth Development Indicate Promising Future
Not for distribution to United States newswire services or for release, publication, distribution or dissemination, directly or indirectly, in whole or in part, in or into the United States.
VANCOUVER, BC (March 21, 2024) —Tactical Resources Corp. (TSXV: RARE) (OTC: USREF) (“Tactical Resources” or the “Company”), a mineral exploration and development company focused on the rare earth elements that drive the critical technologies of the future, today announced an important update on its Phase 1 Technical Work Program at the Peak Project Property, situated 68 miles southeast of El Paso, Texas.
Key Highlights
- Bench-scale bottle roll leach testing completed, with data analysis and reporting currently underway, demonstrating Tactical Resources’ commitment to advancing the Peak Project.
- Ongoing progress in remaining programs, promising further detailed insights and breakthroughs.
- Solidified stance as a key player in strengthening the U.S. Rare Earth supply chain, aligning with national strategic objectives.
Ranjeet Sundher, CEO of Tactical Resources, commented, “The completion and analysis of the bench-scale leach testing mark a significant milestone for Tactical Resources. Our focus on the Peak Project contributes to our growth and works towards Tactical’ s commitment to play a vital role in reducing the nation’s dependence on foreign critical mineral suppliers. As we proceed with our Phase 1 work, we are continuing to explore new development opportunities and forging strategic partnerships to enhance shareholder value and establish a strong domestic Rare Earth supply chain.”
Phase 1 Technical Work Program Overview
The Phase 1 Property Work Program is a multi-faceted technical study designed to establish a robust foundation for the Peak Project’s development:
- Sample Characterization: Creating an initial GeoMetallurgical database for ongoing and future studies.
- Bench-scale Leach Testing: Analyzing leaching processes and maximizing extraction potential at fine particle sizes.
- Bulk-scale Leach Testing: Assessing leaching methods and extraction potential at coarser particle sizes.
- Permeability Testing: Exploring hydraulic conductivity characteristics of potential feed blends.
- Desktop Benchmarking and Scoping Study: Evaluating key value drivers and potential economic viability of the project.
Amid global shifts in the energy sector and heightened focus on securing domestic sources for critical minerals, Tactical Resources’ efforts at the Peak Project are timely and pivotal. The International Energy Agency’s report highlights the pressing need for increased Rare Earth supply to support the global energy transition, and Tactical Resources is positioned to be at the forefront of this change.
Tactical Resources’ progression of the Phase 1 work program is significant stride in its commitment to bolstering the domestic Rare Earth supply chain. This initiative aligns with growing concerns, as expressed by U.S. Energy Secretary Jennifer Granholm, about the United States’ reliance on foreign critical minerals suppliers, particularly China.
In response to the International Energy Agency’s (IEA) warning that current supply levels are insufficient to meet the demands of the energy sector transformation (as detailed in their report at https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions/executive-summary), Tactical Resources is actively enhancing its efforts through its flagship Peak Project. This project is poised to play a pivotal role in establishing a robust, independent supply of Rare Earth elements within the United States.
The Company also announces that it proposes to enter into a convertible loan agreement (the “Note”) with an arm’s length private lender in the aggregate principal amount of $200,000 (the “Principal Loan Amount”). The Company is also pleased to announce that it has granted an aggregate of 2,395,000 stock options (the “Options”) and 1,525,000 restricted share units (the “RSUs”) pursuant to the Company’s Omnibus Incentive Plan dated for reference, August 28, 2023.
Convertible Loan Agreement
The Note bears interest at a rate of 10.0% per annum and matures 24 months from the date of issuance (the “Maturity Date”). Subject to TSX Venture Exchange (the “TSX-V”) approval, the Principal Loan Amount and any accrued interest thereon, is convertible into units of the Company (the “Units”) at a conversion price equal to the last closing market price of the common shares in the capital of the Company (the “Common Shares”) on the TSX-V prior to the date of such conversion. Each Unit shall be comprised of one Common Share and one Common Share purchase warrant (a “Warrant”). Each Warrant is exercisable into an additional Common Share (a “Warrant Share”) at a price of $0.15 per Warrant Share, for a period expiring on the date that is three (3) years from the date of issuance.
The Note and the certificate evidencing the Warrants will contain blocker language restricting the conversion of the Note and the exercise of the Warrants, respectively, in the event such conversion or exercise results in the securityholder holding 10.0% or more of the outstanding voting securities of the Company.
The Company may prepay the Note and any accrued interest thereon, at any time without penalty. The Note and all securities issuable thereunder, including the Common Shares, Warrants and Warrant Shares, shall be subject to a statutory hold period of four (4) months and one (1) day from the date of issuance in accordance with applicable securities laws. Closing is subject to TSX-V approval.
Option and RSU Grants
The Options vest immediately upon grant and are exercisable into Common Shares at a price of $0.10 per Common Share for a 24-month term, expiring on March 20, 2026. The RSUs vest on March 20, 2025 and have a restriction period ending on March 20, 2027. The Options and the RSUs were granted to certain directors, officers and consultants of the Company.
The grant of Options and RSUs is subject to the approval of the TSX Venture Exchange and applicable securities law hold periods.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.
Commitment to Growth and Value
Tactical Resources is not only advancing its flagship project but also actively pursuing potential project development options. The company is committed to growing shareholder value and contributing significantly to the burgeoning sector of critical minerals.
On Behalf of The Board of Directors
~Ranjeet Sundher~
Ranjeet Sundher
Chief Executive Officer & Director
Tactical Resources Corp.
www.tacticalresources.com
About the Peak Project
The Peak project is located 68 miles southeast of El Paso Texas and two miles southeast of the Round Top Rare Earth Element (REE) project owned by Texas Minerals Resources Corporation/USA Rare Earth (20/80% ownership split). Tactical Resources is party to an agreement with the Sierra Blanca Quarry (SBQ) that allows, for a fee, access to and a right of first purchase option to tailings material naturally enriched with REEs on the Sierra Blanca property, in addition to acquisition optionality of the broader all-encompassing SBQ mining lease including the quarry operations.
About Tactical Resources Corp. (TSXV: RARE) (OTC: USREF)
Tactical Resources is a mineral exploration and development company focused on rare earth elements based in Vancouver, British Columbia and the Peak Project in western Texas. The Company is also actively involved in the development of innovative metallurgical processing techniques to further unlock REE development potential. Find out more at: www.tacticalresources.com
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION
Tactical Resources Corp.
Investor Relations
Email: investors@tacticalresources.com
Telephone: +1 (778) 588-5483
Matt Chatterton, Director
Tel: +1 (778) 613-2068
Email: info@tacticalresources.com
Media Inquiries media@tacticalresources.com
FORWARD LOOKING STATEMENTS
This release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion, growth of the Company’s businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.
Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “planning”, “planned”, “expects” or “looking forward”, “does not expect”, “continues”, “scheduled”, “estimates”, “forecasts”, “intends”, “potential”, “anticipates”, “does not anticipate”, or “belief”, or describes a “goal”, or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements are based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of rare earth metals; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company’s publicly filed documents. Although Tactical Resources has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward- looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements.
