PERTH (miningweekly.com) – Junior RareX will raise A$10-million through an institutional placement to fund resource growth at its Cummins Range rare earths project, in Western Australia.
The company on Thursday announced that it would place 111.1-million shares at a price of 9c each, to institutional, sophisticated and professional investors. The shares would be issued under the company’s existing placement capacity, and would not require shareholder approval.
The placement price represents a 10% discount to RareX’s last closing price, and an 18.1% discount its 15-day volume weighted average price.
Funds raised in the placement will be used to fund a major new programme of drilling at Cummins Range rare earths project, with 30 000 m budgeted for 2022 to expand and upgrade the current mineral resource.
Funds will also be used on further drilling to evaluate the recent high-grade phosphate discovery adjacent to Cummins Range, study work and permitting activities at Cummins Range, business development activities and general working capital.