- New kid on the block Heavy Rare Earths (HRE) commences trading today as an ASX-listed rare earths explorer
- The company raised $6 million in its IPO which issued 30 million new shares at 20 cents each to institutional and retail investors
- Heavy Rare Earths has two projects: Cowalinya in WA and the Duke project in the Northern Territory
- The funds will be used to explore and develop its rare earths projects, with up to 10,000 metres of drilling to begin at Cowalinya in the coming weeks
- After opening at 20 cents per share, HRE is trading steady at 23 cents as of 1:51 pm AEST and the company has a $13.65 million market cap
Heavy Rare Earths (HRE) has debuted on the ASX today as its newest Australian rare earths explorer.
The company raised $6 million in its initial public offering (IPO) which included 30 million shares offered to institutional and retail investors at 20 cents each.
Heavy Rare Earths plans to use the money raised to develop its portfolio of rare earths projects amid strong global interest in critical minerals projects.
Heavy Rare Earths’ projects include the Cowalinya clay-hosted rare earths project which comprises one granted tenement, covering 230 square kilometres in Western Australia.
Its other project is the Duke rare earth project which lies within the Northern Territory’s Tennant Creek region. The company applied for two exploration tenements at the project which are both yet to be approved.
Executive Director Richard Brescianini said the company is pleased with the support for the IPO and looks forward to drilling at the Cowalinya project in WA.
“We have assembled a portfolio of high-quality rare earth projects in WA and the NT and thanks to our IPO investors, we now are able to focus our efforts to grow the Cowalinya resource base and work towards establishing an efficient metallurgical recovery process,” he said.
As stated in its investor presentation released today, the ASX newcomer plans to drill 330 holes for up to 10,000 metres at Cowalinya starting in September.
Drilling will aim to explore for rare earth resources to the west and southeast of the Cowalinya South Resource which stands at 22 million tonnes at 620 parts per million total rare earth oxides.
The drill results will then help to increase resource confidence.
Heavy Rare Earths also plans to conduct exploration at the Duke project once the tenements are granted. Initial work will include prospecting and surface geochemistry.
“We have an exciting year ahead in building on what has been achieved to date,” Mr Brescianini said.
In its first day of trade, HRE shares were trading steady at 23 cents at 1:51 pm AEST, after opening at 20 cents per share. The company has a $13.65 million market cap.