Highlights

• Resouro Strategic Metals signed a non-binding MOU with Rare Earth Technologies Inc to evaluate RETI's proprietary extraction process at the Tiros Titanium-Rare Earths Project in Brazil.
• Critical details missing include:
  • Capex requirements
  • Technology readiness level
  • Recovery rates
  • Whether RETI's process enables localized separation
• This is considered early-stage signaling and not a definitive advancement.
• Resouro has a C$19.5M market cap and a Hold rating, remaining a high-risk micro-cap play.
• The project could help diversify Western rare earth supply if pilot testing proves successful.

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Resouro Strategic Metals (opens in a new tab) (TSE: RSM) has entered a non-binding Memorandum of Understanding with Rare Earth Technologies Inc (opens in a new tab). (RETI) to evaluate and potentially deploy RETI’s proprietary rare earth extraction process at Resouro’s Tiros Titanium–Rare Earths Project (opens in a new tab) in Minas Gerais, Brazil.

According to the TipRanks release, the partnership begins with lab-scale and pilot testing of RETI’s technology. If the metallurgy performs, the two companies may move toward full-scale rare earth processing facilities, positioning Resouro as a future supplier to global markets.

That is the headline. But the real Rare Earth Exchanges question is this: What, exactly, is RETI’s technology—and can it scale? The release offers no description of the chemistry, reagents, cost profile, or recovery rates. For a project hosted in titanium-rich, clay-dominant mineralization, extraction performance is everything.

Parsing What’s Real—And What’s Still Vapor

The Confirmed Facts

• The MOU is non-binding, meaning neither party is committed.
• The Tiros project spans 497 km² and holds significant titanium dioxide and rare earth oxide resources.
• Resouro is a C$19.5M micro-cap—far smaller than peers moving toward commercial production.
• Technical sentiment on the stock is officially labeled “Hold.”

What's Missing

For investors, several critical details remain unanswered:

1. Capex requirements for any future processing facility.
2. Technology readiness level of RETI’s extraction flowsheet.
3. Recovery rates and impurity control, especially for HREEs.
4. Whether RETI’s process allows for localized separation, or merely upstream beneficiation.
5. Whether Resouro can secure offtakes in a crowded Brazilian field.

The absence of operational or metallurgical data means the announcement should be treated as early-stage signaling, not a definitive advancement.

Stock View: Micro-Cap, High Torque, High Risk

Resouro trades like a speculative exploration vehicle. With C$20M market cap and moderate trading volume (138k shares/day), even small news can generate sharp price swings. Fundamentally, the company remains pre-revenue, with no demonstrated processing capability and a project years from Feasibility. Technically, the stock sits in neutral territory. A Hold stance is rational until pilot testing yields real numbers.

Why This Matters for the West

Brazil is emerging as a credible non-China source of rare earth feedstock. If RESOUR–RETI can prove out a scalable extraction technique for the Tiros deposit, it may create another supply node feeding Western OEMs—and reduce China’s grip on mixed rare earth carbonate and HREE streams.

But today’s announcement is promise, not proof.

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