Investors back critical minerals explorer RareX via $2.7m placement

Strong participation from existing and incoming investors saw the placement heavily oversubscribed as RareX works to advance Cummins Range and Mrima Hill.

RareX is now funded for various exploratory and corporate work streams. Pic: Getty Images

Special Report: A $2.7m capital raise has underscored strong institutional confidence in the quality and scale of RareX’s growing rare earths and critical minerals portfolio.

• RareX raises $2.7m via placement 
• Funds will be spent on exploration activities at Cummins Range in WA and Mrima Hill in Kenya
• The board have agreed to subscribe for A$75,000 on the same terms as the placement

The placement, involving the issue of 122.7m new shares at 2.2c per share, saw strong support from existing shareholders and new investors, with demand significantly exceeding shares available under the offer. 

It also included a one for two free-attaching option exercisable at 3.5c, set to expire 36-months from the issue. 

The board have agreed to subscribe for A$75,000 on the same terms as the placement, subject to shareholder approval, which will be sought at an extraordinary general meeting intended to be held in July 2025.

This means RareX (ASX:REE) is now funded for various exploratory and corporate work streams to advance and de-risk both its Cummins Range project in WA and Mrima Hill in Kenya, where it and ASX 100 mineral sands player Iluka Resources (ASX:ILU) have formed a consortium to pitch for one of the world’s top undeveloped rare earths sites. 

Cummins Range and Mrima Hill 

REE took top spot for the biggest monthly stock gain in March with the revelation Cummins Range hostest Australia’s highest grade gallium results in re-assayed drill core from the Kimberley project.

Following a deep dive reassessment of the deposit ahead of the drilling season, the company identified historical drill holes containing values up to 6826g/t gallium with intercepts including 99m at 106g/t gallium, 0.77% TREO and 160g/t scandium from 1m. 

Only 25% of the historical drilling has been assayed for gallium so far, with none of RareX’s drilling assayed for gallium to date. 

In May, REE announced a consortium with Iluka Resources (ASX:ILU) to secure and develop the Mrima Hill project in Kenya as the first step in the building of a non-Chinese rare earths supply chain. 

Mrima Hill ranks as one of the top five undeveloped rare earth deposits in the world, while Iluka’s under-construction rare earths processing facility at Eneabba, near Geraldton on WA’s Mid West coast, backed by 1.65B of Australian government funding, could process RareX’s ore from Mrima Hill in a very efficient way.

RareX (ASX:REE) and its partner Iluka have proposed a joint venture with the National Mining Corporation of Kenya (NAMICO), and have seen a positive response from Kenya’s High Commissioner to Australia Dr Wilson Kogo.

Watch: An update on the REE initiatives

What’s next? 

REE chairman Jeremy Robinson said the company is extremely pleased with the level of support from existing and new shareholders as it works to advance efforts in Kenya as well as its projects in Australia. 

CEO and Managing Director James Durrant told Stockhead his focus is delivering progress that justifies long-term confidence, he went on to express his gratitude to all shareholders for their contributions recently and longer term, and intends to demonstrate progress with tangible delivery.

Funds raised during the placement will be spent on specific activities including advancing the procurement process for Mrima Hill, heritage agreements and monetisation studies at Cummins Range, and exploration drilling. 

This article was developed in collaboration with RareX, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.