RareX raises $2m to de-risk rare earths initiatives across portfolio

RareX has raised $2 million through a placement at 2.2c per share to fund exploration across its Mt Mansbridge, Cummins Range and Mrima Hill critical minerals projects.

RareX is encouraged by the strong investor support received for the capital raise. Pic: Getty Images

Special Report: RareX has raised $2m from new and existing institutional, sophisticated and professional investors via a strongly supported placement at 2.2c per share to carry out exploration across the Mt Mansbridge, Cummins Range and Mrima Hill projects. 

• RareX raises $2m from new and existing investors 
• The capital raise was carried out at a 12% premium to the 15-day VWAP
• Funds will support work streams across Mt Mansbridge, Cummins Range and Mrima Hill 

Strong institutional backing, at a 12% premium to the 15-day VWAP, has highlighted the scale and quality of RareX’s (ASX:REE) emerging rare earths portfolio, with demand exceeding shares available under the offer.

Around 90.9m shares will be issued with the placement including a one-for-two free attaching option exercisable at 3.5c per share and expiring 36 months from the issue. 

It is proposed that the options will be listed subject to satisfying ASX requirements and shareholder approval in late August. 

Funds to support rare earths exploration 

RareX plans to use the funds to carry out various work across its Mt Mansbridge, Cummins Range and Mrima Hill assets. 

At Mt Mansbridge in WA’s Kimberley region, money will be put towards exploration drilling, focusing on near-mine anomalies.

A 70m heavy rare earths-bearing vein was recently discovered down the road from the 11.7Mt Browns Range project. 

Over at Cummins Range near Halls Creek in WA, RareX will home in on gallium definition, heritage studies and monetisation studies while it looks to progress the procurement process at Mrima Hill. 

RareX has teamed up with mineral sands heavyweight Iluka Resources (ASX:ILU) and entered a consortium agreement to secure approval for the globally significant Mrima Hill asset in Kenya. 

Mrima Hill is ranked among the top five undeveloped rare earth deposits in the world and is also prospective for phosphate, niobium and manganese. 

“Highly effective” 

REE CEO and managing director James Durrant said this was a demand driven and highly effective capital raise at VWAP premiums at an opportune time. 

Canaccord Genuity and Evolution Capital acted as joint lead managers to the placement. 

The placement price represents a 5.3% premium to the 10-day volume weighted average price of 2.1c. 

REE will seek shareholder approval for the issue of the attaching options and new shares under the tranche 2 placement at an upcoming meeting in late August. 

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.

Originally published as RareX raises $2m to de-risk rare earths initiatives across portfolio