PERTH (miningweekly.com) – ASX-listed Meteoric Resources has announced a A$25-million capital raising to fund exploration at Caldeira rare earth project, in Brazil.

The company on Tuesday said it had received firm commitments for the placement of 200-million new shares, at a price of 12.5c each, representing a 13.8% discount to its last closing price and a 5.9% premium to its 15-day volume weighted average share price.

“The response to this capital raising has been fantastic and truly demonstrates the market’s growing understanding of the High Grade Ionic Adsorption Clay Caldeira rare earth project. We are thrilled to have raised A$25-million, which sees Meteoric fully funded to carry out our extensive work programmes planned for Caldeira throughout 2023,” said newly appointed executive chairperson Andrew Tunks.

“This will be a milestone year for Meteoric, with the release of the Caldeira mineral resource estimate anticipated shortly and our ongoing and planned extensive Caldeira work programmes which will include resource infill and expansion drilling, geophysics, metallurgy, regional exploration across new areas located within Caldeira, the commencement of our preliminary economic assessment and baseline environmental studies.

“Subsequently, as we gear up for a massive year ahead, we have made board level changes to ensure the right team is in place to spearhead our targeted Brazilian approach. Brazil-based Dr Marcelo De Carvahlo steps up from a nonexecutive role to be executive director - chief geologist and I will fulfil the executive chairperson position. Alongside our incoming CEO Nicholas Holthouse, we believe we now have a fantastic leadership in place to progress this immensely exciting rare earth project.”

The capital raise comes just days after Meteoric terminated the sale of its Juruena gold project to Keystone Resources, after that company failed to make the remaining $17.5-million payment for the project, at the end of March.

Meteoric will retain a $2.5-million on-refundable payment from Keystone, which was received in October of last year, as part of the initial agreement.