Australian Strategic Materials Cashed Up and Ready for Continued Global Push

Australian Strategic Materials’ (ASX: ASM) plans to create a global rare earth and specialist metals business have received a $13 million boost from a successful institutional placement.

In combination with its heavily oversubscribed share purchase plan (SPP) earlier this month, the company has brought in a total of $24.9m in new funds.

The SPP, which raised nearly four times its initial target of $3m, highlighted the growing global interest in the company.

Broad Institutional Support

ASM received strong support for the placement from new and existing domestic and international institutional investors, along with a cornerstone investment from company chair and major shareholder Ian Gandel.

Mr Gandel subscribed for $1m worth of shares at the issue price of $0.5647, which represents a 21.6% discount to the $0.72 closing price of ASM shares on 23 July 2025, and a 16.6% discount to the A$0.677 10-day volume weighted average price over the same period.

The company estimates its cash balance upon completion of the Placement (before costs) will be approximately A$43.9m.

Accelerated Growth Strategy

Managing director Rowena Smith said the investments were key to Australian Strategic’s growth and long-term success.

“This capital injection provides confidence and momentum as we accelerate our growth strategy: scaling production capability at our Korean Metals Plant (KMP), planning for a potential metals facility in the United States and fast-tracking rare earth oxide production at the Dubbo project,” Ms Smith said.

“As global markets and governments increasingly seek resilient and diversified rare earth supply chains in response to shifting geopolitical dynamics, ASM is positioned to deliver.”

Expanding Portfolio

The new metals facility in the US will produce rare earth metals and alloys, adding to the KMP and the company’s rare earth project in Dubbo, New South Wales.

Australian Strategic recently announced the maiden sale of heavy rare earth metals produced at the Korean plant to a subsidiary of Neo Performance Materials Inc, with whom the company also signed a Memorandum of Understanding with to formalise a broader strategic partnership.

“Recent developments like the partnership announced between MP Materials and the US Department of Defense highlight the rapidly evolving market we are operating in and the value that ASM’s mine to metals strategy can bring,” Ms Smith added.