RareX (ASX: REE) will top up its cash reserves via a “strongly supported” $3 million placement, with proceeds to be used to advance its Western Australian rare earth element projects.
The company has received firm commitments from institutional, professional and sophisticated investors to raise the $3 million via the issue of 30 million shares at $0.10 each.
RareX directors are also participating in the placement by collectively subscribing for $90,000-worth of shares.
Canaccord Genuity (Australia) acted as the sole lead manager and bookrunner.
RareX managing director Jeremy Robinson said the company was “delighted” by the “strong support” it had received for the capital raising, which will see the company well-placed to accelerate its REE exploration and development plans.
“Investors can look forward to a news-flow-rich period for RareX with the potential to deliver numerous catalysts that could well and truly re-rate the stock.”
Advancing Weld North REE project
The placement proceeds will be used to fund an upcoming drilling program at the Weld North rare earths project.
Upcoming drilling at Weld North will target a circular magnetic anomaly, which is 84km north of Lynas Corporation’s (ASX: LYC) Mt Weld carbonatite hosted REE deposit.
The program will comprise aircore drilling to test below cover and gauge whether the anomaly is caused by a similar carbonatite intrusion to Mt Weld or a granitic intrusion.
Mr Robinson said this drilling will begin before the end of the year and provide the company with its “first real insight” into the source of the large-scale anomaly and its potential to host a “significant new discovery”.
Progressing Cummins Range to scoping study
Over at Cummins Range, RareX recently completed 6,143m of drilling, with assays pending from 38 holes and expected within the next three weeks.
The project is 130km southwest of Halls Creek in the east Kimberly region.
RareX noted Cummins Range is one of two known REE deposits bearing carbonatites in Australia, with Mt Weld being the other one.
Cummins Range has a resource of 13Mt at 1.13% total rare earth oxides with 22.1% neodymium-praseodymium.
Mr Robinson said capital raising funds will be used to deliver an updated resource for Cummins Range and begin scoping study work.