PERTH (miningweekly.com) – ASX-listed Australian Rare Earths will raise A$8.1-million in a share placement to domestic and global institutional investors.
The company on Wednesday announced that it had received firm commitments for the placement of 18.5-million shares, priced at 44c each, representing a 6% discount to its 15-day volume weighted average share price.
The placement participants would receive one free attaching unlisted option on a one-for-two basis, exercisable at 57c each, and with a December 2023 expiry date.
The share placement will be undertaken under Australian Rare Earth’s existing placement capacity, and as such would not require shareholder approval.
The company told shareholders that proceeds from the placement would be used to fund further resource definition drilling, metallurgical test work, and stakeholder engagement at its Koppamurra clay-hosted rare earths project, in South Australia, as well as to fund the evaluation of downstream processing.
“The funds enable the company to continue unlocking the potential of the Koppamurra deposit and its associated value proposition,” said MD Don Hya.
“We thank our existing shareholders for the support in this placement and welcome several highly regarded international institutions as new shareholders of Australian Rare Earths. The placement strengthens the register and validates the intrinsic value of Australian Rare Earths’ unique clay-hosted rare earth deposit.”