Tactical Resources Secures $140 Million Financing for Rare Earth Supply

Tactical Resources Corp announces a $140 million financing deal with Yorkville Advisors Global, LP, aimed at boosting the U.S. supply of rare earth elements. The agreement includes $40 million in convertible debt and a $100 million standby equity purchase. This financial boost supports Tactical’s merger with Plum Acquisition Corp. III, facilitating a Nasdaq listing for the new entity, PubCo.

Tactical leverages its substantial tailings inventory at a Texas mine, offering immediate processing potential. This asset reduces the typical decade-long mine development timeline and capital requirements, presenting diverse financing options. The strategy aims to expedite the company's goal of becoming the second large-scale U.S. supplier of rare earths.

The financing includes attractive terms with conversion features aligned to strategic milestones and a flexible approach towards using equity as a secondary option to limit shareholder dilution. Completion of the financing is expected by the end of 2025, subject to standard conditions and the successful business combination.