Enters into MOU with the Government of Minas Gerais and Invest Minas to Facilitate the Development of the Tiros Titanium and Rare Earths Project
Enters into MOU with the Government of Minas Gerais
Sydney, Nov 27, 2024 AEST (ABN Newswire) - Resouro Strategic Metals Inc. (
ASX:RAU) (CVE:RSM) (8TX:FRA) (RSGOF:OTCMKTS) is pleased to announce that its subsidiary, Tiros Minerais Estrategicos Mineracao Ltda. (¨TMEL"), has signed a non-binding Memorandum of Understanding ("MOU") with the Minas Gerais State Economic Development Department ("SEDE") and the Integrated Economic Development Institute ("Invest Minas").
The MOU was signed in the Governor's room at the Industry Federation of Minas Gerais State ("FIEMG"). The State Secretary of Economic Development, Mr. Fernando Passalio, represented the Government of Minas Gerais and Mr. Joao Paulo Braga, represented Invest Minas. Chris Eager, Resouro's Executive Chairman represented the Company, together with CEO, Alistair Stephens, and Executive Director, Philippe Martins.
The purpose of the MOU is to provide the foundations for a partnership for the State of Minas Gerais and Invest Minas to assist with the advancement of Resouro's Tiros Titanium and Rare Earths Project ("Tiros Project" or "Project"). The partnership will enable the Company to collaborate with Invest Minas to fast track the Project's development towards permitting, construction and mining.
Key Terms of the MOU
The MOU sets general commitments and efforts of each of the parties to achieve goals and objectives for the Project's development. The key commitments and efforts of the respective parties to the MOU are:
Invest Minas:
1. Provide support for TMEL during the various stages of development of the Tiros Project, including:
- Facilitating contact with government agencies;
- Assisting in the process of Project approval and licensing;
- Introducing and promoting interactions with suppliers to support the Company's activities;
- Collaborating with the Project to sustain investments in the supply chain for raw materials and materials for permanent magnets and titanium-based composites in Minas Gerais;
- Facilitating bilateral connections and forming partnerships for local value chain investments;
- Considering and facilitating the implementation of supply contracts for companies interested in establishing themselves in the state; and
- Seek partnerships and sector development.
TMEL:
1. Development of the Tiros Project:
- Investing in additional exploratory activities and developing a titanium and rare earth mining operation in Minas Gerais;
- Conducting the necessary economic studies to progress to the construction, development and production phases of the Project;
- Investing in mining and processing facilities; and
- Creating approximately 200 direct jobs during the construction, development, and operational phases.
2. Social and sustainability commitments:
- Preferentially using local suppliers and hiring local talent whenever possible and commercially viable; and
- Identifying local infrastructure needs and supporting investments that contribute to strengthening the sector for strategic raw materials and materials.
3. Partnerships and collaboration:
- Supporting Invest Minas in developing the supply chain for permanent magnets and titanium-based materials; and
- Transferring knowledge and expertise to promote the sector within the state.
4. Planning future operations:
- Operating with appropriate permitting and licenses; and
- Implementing strategies with the aim of achieving an annual ore processing capacity exceeding 5 million tons of rare earths and titanium ore.
Commenting on the signing of the MOU and the establishment of this vital partnership, Resouro's Executive Chairman, Chris Eager, commented:
"The State Government of Minas Gerais has demonstrated great support for the development of the Tiros Project. The signing of this Memorandum of Understanding consolidates Resouro's existing excellent relationship with the people of Minas Gerais, who we see as key stakeholders in the Tiros Project. Through our collaboration with Invest Minas and the State Secretariat for Economic Development, we will gain critical support in navigating regulatory processes, establishing strategic partnerships, and integrating with local suppliers and talent. Formalising this partnership will help accelerate development of the Project, bringing significant investments, job creation, and fostering a robust supply chain for titanium and rare earth materials in Minas Gerais. Together, we are driving sustainable growth and aiming to position the region as a global hub for critical minerals."
The MOU also has the following terms:
- Term in years: The MOU is valid for 3 years.
- Non-binding document: The MOU is non-binding and does not create legal obligations or liabilities between the parties.
- Notice period for termination in writing: Either party may terminate the MOU with a three-month prior written notice to the other party.
- Settlement of disputes: Disputes will be resolved directly between the parties, without the obligation to seek third-party assistance. If unresolved, the applicable governing law will be Brazilian Law.
About Invest Minas
Invest Minas' purpose is to attract investment to the State of Minas Gerais, Brazil. To achieve this goal, it seeks, among other actions, to facilitate cooperation between private companies, investors, and the public administration. One of its main objectives is to increase the level of employment and reduce the regional and social inequalities in the State, for which it is essential to protect existing investments, encourage new ones that streamline and modernize production in the State and form partnerships with the private sector. Invest Minas, with a number of rare earth and lithium companies already within its regions, is focused on not only supporting these companies to develop their rare earth and lithium resources but also to extend this support towards building an integrated lithium battery sector. This extends investment beyond the mine to include downstream activities such as the production of battery materials. Invest Minas' role is to enable future investment and partnerships that support the expansion and growth of the sector.
About Resouro Strategic Metals Inc.
Resouro Strategic Metals Inc. (ASX:RAU) (CVE:RSM) (OTCMKTS:RSGOF) (FRA:8TX) is a Canadian-based mineral exploration and development company focused on the discovery and advancement of economic mineral projects in Brazil, including the rare earth elements and titanium Tiros Project and the Novo Mundo and Santa Angela gold projects.
The Tiros Project, located in northern Minas Gerais, Brazil, is an exploration project focused on rare earth elements and titanium covering an area of approximately 450 km2. The Tiros Project comprises 17 exploration permits, and one exploration permit application held by the Company's Brazilian subsidiary; and 6 exploration permits and one exploration permit application that have been validly assigned to the Company's Brazilian subsidiary and are awaiting ANM approval. The Company holds, via its wholly owned Brazilian subsidiary, a 90% interest in the Tiros Project and the remaining 10% interest in the Tiros Project is held by RBM Consultoria Mineral Eireli (RBM), an unrelated third-party vendor.
The Novo Mundo Project is located in the Alta Floresta Gold Province close to the northern border of the state of Mato Grosso, central Brazil. Within the licensed area is the small town of Novo Mundo, which is 30km west from the larger town of Guaranta do Norte. It comprises three exploration permits. The Company also has another interest in an exploration permit, being the Santa Angela Project, which is not considered material to the Company's operations. Interests in the Novo Mundo Project and Santa Angela Project are held via the Company's wholly owned subsidiary.
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