THE BOURSE WHISPERER: RareX Limited (ASX: REE) has raised $2.3 million on the back of firm commitments from institutional and professional investor support for a share placement.
RareX will issue 46 million shares at 5 cents per share, with company directors chipping in to the tune of collectively subscribing for $200,000 worth of shares.
The shares to be issued to the Directors will be subject to shareholder approval at a meeting to be convened in due course.
RareX indicated the proceeds will further strengthen its balance sheet, placing it in an excellent position to progress the upcoming maiden drilling program at the company’s 100 per cent-owned Cummins Range rare earths project in the Kimberley region of Western Australia.
An upcoming drill program is to be the first drill program carried out at Cummins Range in almost a decade with the last drilling completed by previous ownership in 2011.
Elsewhere, RareX has exposure to an exciting ongoing exploration campaign via its 35 per cent free-carried interest in the Trundle copper-gold porphyry project in New South Wales, alongside Kincora Copper (65%).
The company also has 100 per cent interest in a highly prospective gold project near Orange in NSW known as Orange East, which is located within close proximity to the large McPhillamys gold mine owned by Regis Resources Limited.
Following completion of the Placement, RareX will hold cash and listed investments totalling $6.1 million, including its 9.65 per cent stake in TSX.V-listed Kincora Copper.
“We are delighted with the strong support received from investors as part of this capital raise, which reflects the quality of our assets and the exciting outlook for the company,” RareX chairman John Young said in the company’s announcement to the Australian Securities Exchange.
“RareX shareholders will have exposure to two quite different, but equally exciting, exploration campaigns over the coming weeks and months.
“Drilling is on track to commence next month at Cummins Range targeting extensions of our high-quality existing Resource as well as new satellite discoveries.
“Meanwhile, we are in the midst of a potentially game-changing drill program at the Trundle project in New South Wales, where the Kincora team have intersected significant porphyry mineralisation in the first two diamond drill holes.
“The third hole is in progress and we are eagerly awaiting further results, and assays, from this maiden drill program.”