- American Rare Earths (ARR) will progress two projects in North America after completing a single tranche placement which raised $14 million at 29 cents per share
- The company’s flagship La Paz project in Arizona has a JORC compliant resource of 170 million tonnes and an exploration target of just under one billion tonnes
- ARR is planning further drilling at La Paz as well as at its Halleck Creek project in Wyoming where it aims to deliver a maiden JORC resource
- American Rare Earths shares are down 6.12 per cent at 23 cents just before market close
American Rare Earths (ARR) will progress two projects in North America after completing a single tranche placement raising $14 million.
The placement included the issue of roughly 48.3 million shares to investors at an issue price of 29 cents.
The company’s flagship La Paz project is northwest of Phoenix in Arizona and already has a JORC compliant resource of 170 million tonnes, but an exploration target of just under one billion tonnes.
The company is planning further drilling at La Paz and is also working on its Halleck Creek project in Wyoming.
American Rare Earths Managing Director Chris Gibbs said the raise was supported by new and existing institutional, professional and sophisticated investors.
“The use of funds for this capital raise is really around fast tracking the Halleck Creek project and moving that forward,” Mr Gibbs said.
“With the Halleck Creek project too, we have significantly increased the landholding as a result of field exploration work and staked a whole series of additional claims.
“We’re super excited, we can’t wait to get these drills on the ground and the plan is to come out with a significant JORC resource in the first part of 2023,” he said.
Fidelity International holds a 9.9 per cent stake in the company.
The last capital raising in December was priced at 14.8 cents and raised over $6 million.
American Rare Earths shares were trading 6.12 per cent in the red at 23 cents just before market close.