- Ionic Rare Earths (IXR) receives firm commitments to raise $30 million via a share placement
- The company will issue 405.4 million new Ionic shares to shareholder and institutional investors at 7.4 cents each
- Ionic will use the money to finalise the mineral resource estimate for the Makuutu rare earths project in Uganda and complete a Makuutu feasibility study
- The funds will also be used to accelerate development of the Seren Technology rare earths separation business and enter the rare earths supply chain in the US and Europe
- IXR shares down 3.66 per cent to 7.9 cents
Ionic Rare Earths (IXR) has received firm commitments from shareholders and institutional investors to raise $30 million via a share placement.
The company intends issuing 405.4 million new Ionic shares under the placement at a price of 7.4 cents each, representing a 10 per cent discount to the 10-day volume-weighted average price (VWAP) and a 12.7 per cent premium to the 30-day VWAP.
The shares were expected to settle on Tuesday, April 19 and be issued the next day.
Ionic said it would use the equity placement funds to update the mineral resource estimate (MRE) for its Makuutu rare earths project in Uganda, complete a Makuutu feasibility study and apply for a mining licence.
The updated MRE was due to be finalised during the current quarter.
The company said the placement proceeds would also go towards accelerating development work on the Seren Technology rare earths separation business and entering the rare earths supply chain in the US and Europe.
Managing Director Tim Harrison said the strong support reflected the potential of Ionic as a unique magnet and heavy rare earths development opportunity.
“This is a very positive milestone for Ionic and our plans to develop the Makuutu rare earths project and to take Seren Technology forward,” he said.
“We are seeing a significant step change in interest for the magnet rare earth and heavy rare earth content from Makuutu.
“With a greater end-user understanding on supply risk for key magnet rare earths, we believe that the company’s integrated business will become an increasingly important
strategic asset as demand for a secure, sustainable supply of magnet and heavy rare earths increases and geopolitical tensions remain high.”
IXR shares were down 3.66 per cent to 7.9 cents at 12:01 pm AEST.