The R3D Resources Limited (ASX: R3D) share price might be catching the eye of investors on Thursday.
The former investor relations company's shares appear to be up 250% to 19 cents in late morning trade.
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What's actually happening with the R3D Resources share price?
The R3D Resources share price hit the ASX boards this morning following the successful completion of the reverse takeover of Tartana Resources.
It listed on the ASX boards today after raising $4.25 million at $0.20 per share.
As a result, the R3D Resources share price is actually trading 5% lower today and not 250% higher.
What is Tartana Resources?
Tartana Resources is a company which was established in 2007 with a portfolio of copper-gold exploration and mining assets in the Chillagoe Region in North Queensland.
Management notes that the objective of the acquisition is to grow R3D Resources into a significant copper-zinc producer through exploring and developing these assets.
This is quite the transition for R3D Resources. Until very recently, the company was an Australian-based investor relations company listed on the ASX under the name of R3D Global. It was delisted last year after a long period of underperformance and COVID-19 disruption.
It explained: "R3D's existing businesses have been dramatically curtailed with the advent of the Covid-19 pandemic and continue to retain an uncertain outlook. Accordingly, the Company's directors have determined that it is in the best interests of the Company that it diversifies its operations through the acquisition of Tartana Resources, providing an alternate business opportunity to benefit the Company's shareholders."
Upon listing today, the company's Managing Director, Dr Stephen Bartrop, said: "We look forward to recommencing exploration activities shortly. Our projects are first class, and we thank the existing and new shareholders for their support. We look forward to the journey ahead."
Shareholders will no doubt be hoping the company fares much better as a mining company than it did as an investor relations company.
