Ionic Rare Earths Limited (ASX: IXR) has received firm commitments to raise A$5.9M by way of a placement of approximately 280.9M shares, at a price of A$0.021 per share.
IonicRE managing director, Tim Harrison, commented, “The strong response to the raise reflected the potential of the company as a unique magnet and heavy rare earth development opportunity with the potential to become an end to end vertically integrated rare earth and magnet supply chain participant.”
The placement represents a 18.9% discount to the volume weighted average price over the past 10 trading days.
“The recent updates on the company’s progress of the demonstration plants at Makuutu and the Ionic Technologies’ Belfast recycling facility together with continuing advanced discussions to increase its interests in the Makuutu Rare Earth Projects from its current 60% interest augur well for positive news flow in the coming months.”
In addition to the placement, the company will offer eligible existing shareholders with a registered address in Australia or New Zealand who were holders of Shares at 7:00pm (AEST) on 17 November 2023 the opportunity to apply for new shares via a non-underwritten securities purchase plan (SPP), without incurring brokerage fees.
The company may raise up to A$2M under the SPP at the same price as the placement. Eligible shareholders will have the opportunity to apply for up to A$30,000 worth of shares. The shares issued under the SPP will rank equally with the company’s existing shares.
IonicRE will use the funds raised to provide working capital, advance the demonstration plant activities at both the magnet recycling facility in Belfast and the Makuutu Rare Earths Project in Uganda.
To find out more, please visit www.ionicre.com.au
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