RareX Secures $2.7M Placement at 19% Discount to Fund Exploration
RareX Limited has successfully raised A$2.7 million through a share placement, attracting strong institutional support to advance its rare earths exploration projects in Australia and Kenya.
- A$2.7 million raised via share placement at A$0.022 per share
- One-for-two free-attaching options exercisable at A$0.035 included
- Funds earmarked for exploration and corporate activities at Cummins Range and Mrima Hill
- Strong demand from existing and new institutional investors
- Board to participate with A$75,000 subscription subject to shareholder approval
Strong Capital Raise Signals Confidence
RareX Limited (ASX: REE) has announced a successful capital raise of A$2.7 million through a share placement, underscoring robust investor confidence in its rare earths portfolio. The placement, priced at A$0.022 per share, attracted firm commitments from both existing shareholders and new institutional investors, with demand significantly exceeding the available shares.
Accompanying the placement is a one-for-two free-attaching option exercisable at A$0.035, set to expire in 36 months. The company plans to seek shareholder approval to list these options, which could provide additional capital upside if exercised.
Funding Exploration and Strategic Development
The freshly raised funds will be directed towards advancing RareX's key projects, including the procurement process for the Mrima Hill project in Kenya, conducted in partnership with Iluka Resources. Additionally, the company will progress exploration activities at Cummins Range in Australia, focusing on gallium definition, heritage agreements, and monetisation studies.
Exploration drilling programs are also slated to commence mid-year at Mt Mansbridge and Khaleesi projects, targeting high-value rare earth elements and niobium anomalies. These initiatives aim to de-risk and enhance the value proposition of RareX’s portfolio.
Board Participation and Upcoming Approvals
Demonstrating alignment with shareholders, RareX’s Board has committed to subscribing for A$75,000 worth of shares on the same terms as the placement, pending shareholder approval at an Extraordinary General Meeting scheduled for July 2025. This move signals confidence from management in the company’s strategic direction.
Settlement of the placement is expected on 21 May 2025, with new shares to rank equally with existing shares. The company is now well-positioned to execute its near-term catalysts, including government approvals in Kenya and completion of heritage agreements in Australia.
Market Implications and Outlook
RareX’s ability to secure strong institutional backing at a 19% discount to the recent volume-weighted average price reflects market recognition of the quality and scale of its rare earth assets. As global demand for critical minerals intensifies, RareX’s progress in both exploration and corporate milestones will be closely watched by investors seeking exposure to this strategic sector.
Bottom Line?
With fresh capital and strong backing, RareX is poised to accelerate its rare earths ambitions—but key approvals and exploration results will be pivotal next steps.
Questions in the middle?
- Will shareholder approval be granted for the attaching options and Board participation?
- How will government procurement milestones in Kenya impact the Mrima Hill project timeline?
- What initial results will the upcoming drilling programs at Mt Mansbridge and Khaleesi reveal?
