THE BOURSE WHISPERER: RareX Limited (ASX: REE) received commitments to raise $3 million via a share placement to institutional, sophisticated and professional investors.
Rare X raised the funds at 10 cents per share, a nice discount to its current share price of 12 cents, resulting in 30 million new fully-paid ordinary shares to be issued.
The raising received strong support from existing institutional and professional investors, with the company’s Directors also chipping in by collectively subscribing for $90,000 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.
The company indicated the proceeds of the placement will be used to fund upcoming drilling programs at the company’s Weld North rare earths project; and to complete a Mineral Resource update, initial scoping studies and further exploration at the Cummins Range rare earths project.
“We are delighted by the strong support for this capital raising, which has introduced a number of new shareholders to the register and will see the company well placed to accelerate our rare earth exploration and development programs,” RareX managing director Jeremy Robinson said in the company’s ASX announcement.
“Investors can look forward to a news-flow-rich period for RareX with the potential to deliver numerous catalysts that could well and truly re-rate the stock.
“We are very much looking forward to testing the Weld North project, which shows some compelling early-stage similarities to Lynas Corporation’s Mt Weld rare earths deposit, which underpins one of the world’s highest-grade rare earth mines.
“Air-core drilling is set to commence at Weld North before the end of the year, providing our first real insight into the source of the large-scale magnetic anomaly and its potential to host a significant new discovery.
“In addition, the funds will also be used to progress our Cummins Range rare earths project, including the delivery of an updated Mineral Resource Estimate and the commencement of initial Scoping Studies.
“Further news-flow on this front is imminent, with outstanding assays from the recently completed drilling expected over the next 2 to 3 weeks.”