- Rare earths explorer RareX (REE) receives firm commitments to raise $10 million via a share placement
- A total of 111.1 million new fully-paid ordinary shares will be issued to institutional, sophisticated and professional investors at nine cents
- Subject to shareholder approval, company directors have agreed to subscribe for up to $650,000, taking the total capital raising to $10.65 million
- RareX will use the money to fund a major drilling program, study work and permitting activities at Cummins Range Rare Earth Project
- Shares in RareX were up 5 per cent to 10.5 cents by the end of the trading day
Rare earths explorer RareX (REE) has received firm commitments to raise $10 million via a share placement.
The company entered a trading halt on March 1 but did not disclose how much it intended to raise or what it would use the funds for once received.
A total of 111.1 million new fully-paid ordinary shares will be issued to institutional, sophisticated and professional investors at nine cents.
This price represents a 10 per cent discount to RareX’s last trading price of 10 cents on February 28 and an 18.1 per cent discount to the 15-day volume-weighted average price of 10.9 cents.
Subject to shareholder approval, company directors have agreed to subscribe for up to $650,000, taking the total capital raising to $10.65 million.
RareX will use the money to fund a major drilling program at the Cummins Range Rare Earths Project, study work and permitting activities at Cummins Range and business development activities.
“We are now fully funded to pursue an extremely exciting drilling program to grow the resource to the next level as set out in our recently released exploration target,” Managing Director Jeremy Robinson stated.
“If we are successful, Cummins Range would rank as a top-3 rare earths project in Australia and one of the largest and most significant new rare earths development assets globally.
“The rare earths sector is about to go through another phase of significant growth, and we are very well placed to benefit with ownership of a large, high-grade asset in a Tier-1 jurisdiction.”
Shares in RareX were up 5 per cent to 10.5 cents by the end of the trading day.