Plum Acquisition Corp. III, a NASDAQ-listed special purpose acquisition company, has announced a definitive agreement to merge with Tactical Resources. The business combination is anticipated to close in Q4 2024, pending customary closing conditions, including regulatory, court, and stockholder approvals.
Tactical Resources’ flagship asset, the Peak Project, includes the rights to acquire rare earth elements (REEs) enriched tailings and stockpiled materials from the Sierra Blanca Quarry. Located southeast of El Paso, Texas, the Peak Project benefits from extensive infrastructure and a mining-friendly jurisdiction. Tactical Resources aims to become a major REE producer in the U.S., leveraging the project’s unique position as one of the few Direct-Leach-Extractable rare earth hard rock projects globally.
The Peak Project already has quarry operating permits and an exclusive option to purchase SBQ’s mining lease and infrastructure. As North America seeks to reduce reliance on Chinese REE sources—critical for semiconductors, electric vehicles, and national defense—Tactical Resources is positioned to meet growing demand.
Investment Highlights:
- Growing Asset and Company: Strategic U.S. focus with a strong position in the REE sector.
- Geopolitical Impact: Reducing dependence on Chinese REEs crucial for technology and defense.
- Operational Mine in Texas: Proven REE-enriched tailings with promising test results.
- Financial Upside: Attractive financial projections with low initial capital requirements.
- Experienced Management: A team with significant industry expertise.
Management Comments:
Ranjeet Sundher, CEO of Tactical Resources, said, “This business combination with Plum is a significant milestone for us. We aim to transform both domestic and international REE supply chains and reduce America’s reliance on overseas sources. Our project’s advanced infrastructure means we can achieve production more efficiently than typical mining projects.”
Kanishka Roy, CEO of Plum, added, “We are excited about this merger. Tactical Resources’ mission aligns with our commitment to national security and reducing reliance on Chinese REE sources. We look forward to collaborating on this important initiative.”
Business Combination Overview:
The proposed merger values Tactical Resources at $589 million, assuming a cash-free, debt-free basis. The transaction will finance Tactical Resources’ growth plans at the Peak Project and future production activities. Plum will re-domicile in British Columbia and amalgamate with a newly formed entity, New Pubco, which will then continue as a wholly-owned subsidiary of New Pubco. Tactical Resources’ existing shareholders will convert their stakes into New Pubco, expected to own approximately 82% of the new entity.
Additional details, including the Business Combination Agreement, will be available in filings with the SEC and SEDAR+. For more information, visit Plum’s investor website at Plum Partners.
Advisors:
- Plum: Cohen & Company Capital Markets (exclusive financial advisor), Hogan Lovells US LLP (legal counsel).
- Tactical Resources: Jett Capital Advisors, LLC (exclusive financial advisor), Allen & Overy Shearman Sterling US LLP (legal counsel).
