Exploration company RareX (ASX: REE) has secured a $2.75 million investment by prominent resources identity Simon Lee via a placement comprising 25 million new and fully paid ordinary shares at $0.11 each.
The placement will strengthen RareX’s cash and liquid position to approximately $11.25 million, with the new funding to be used to progress its growth strategy in the global rare earths sector.
Specifically, it will be put towards a drilling program at the wholly-owned Cummins Range project in Western Australia’s Kimberley region, the completion of an updated mineral resource estimate, initial scoping studies, and for general working capital purposes.
Managing director Jeremy Robinson said the strategic investment would benefit RareX as it moves into the Asian market.
“Securing an investment from someone of Mr Lee’s reputation and calibre in the international mining industry is a glowing endorsement of our growth ambitions in the booming rare earths sector,” he said.
“We see his investment [as] a good strategic fit as we move to set up a rare earths trading company, which will most likely be based in Singapore.”
Earlier this month, RareX signed a deal with Shenghe Resources Holdings Co to use the trading company for the sourcing of rare earths concentrates globally (except from within China) for processing at Shenghe’s existing and proposed refining assets within China and around the world.
Based in Singapore, Mr Lee’s track record in the Australian resources industry includes the establishment of minerals companies Great Victoria Gold NL, Samantha Gold NL and Equigold NL.
He has held a number of executive positions including as board member of the Australian Trade Commission (AUSTRADE) and president of the Western Australian Chinese Chamber of Commerce Inc.
In 1993, Mr Lee received the Advance Australia award for his contribution to commerce and industry and the following year, was appointed an officer of the Order of Australia.
He is currently a non-executive director of Emerald Resources (ASX: EMR).
Settlement of the placement is expected this week, and Mr Lee’s new shares will rank equally with RareX’s existing shares on issue.