- American Rare Earths (ARR) announces a binding commitment to Fidelity International to raise $6.1 million
- The placement will offer around 41.1 million shares at 14.8 cents per share, representing a 4.5 per cent discount to the last trading price
- Funds raised will be used for the La Paz project in Arizona including, completing metallurgical test work and preliminary economic assessment (PEA)
- Capital will also be applied to identify a JORC resource for the Halleck Creek project in Wyoming
- American Rare Earths shares are up 3.2 per cent at 16 cents at 11:00 am AEDT
American Rare Earths (ARR) announces a binding commitment to Fidelity International to raise $6.1 million.
The placement will offer around 41.1 million shares at 14.8 cents per share, representing a 4.5 per cent discount to the last trading price of 1.5 cents.
Shares allocated to Fidelity will settle on December 9, whilst participation from the managing director for placement of over two million shares at the same price will be subject to shareholder approval.
The funds raised will be used for the La Paz project in Arizona, including, completing metallurgical test work and drilling the new ore body in the SW area.
As well as resource expansion drilling and preparing the preliminary economic assessment (PEA).
Additionally, funds will be applied to completing the maiden drill program to identify a JORC resource and commence metallurgical test work for the Halleck Creek project in Wyoming.
Taylor Collison acted as the placement agent with a 6 per cent fee on funds raised as well as 1 million options at 20 cents, expiring in two years.
American Rare Earths managing director and CEO, Chris Gibbs, said Fidelity is a great addition.
“Our vision is to build the next major Rare Earth and Critical Minerals Company and play a key role securing supply for the United States of America,” he said.
“We are delighted to have the confidence of a highquality, long term institutional investor such as Fidelity to support our growth plans. Fidelity is a wellknown investment partner in our industry and such a large initial stake demonstrates their commitment that we have the right team and world class assets to deliver results.”
American Rare Earths shares are up 3.2 per cent at 16 cents at 11:00 am AEDT.