ABx’s $6M Placement Hinges on Shareholder Approval Amid Growth Plans
ABx Group has successfully raised over $6 million through a share placement to fund rapid development of its Deep Leads rare earth project and ALCORE pilot plant in Tasmania.
- Raised $6.05 million via share placement at $0.081 per share
- Funds to advance Deep Leads rare earths project and ALCORE pilot plant
- Placement supported by institutional investors and board members
- Issuance of 74.7 million new shares with attaching options pending shareholder approval
- Pilot plant to produce hydrogen fluoride from aluminium smelter by-product
Capital Raise to Fuel Strategic Growth
ABx Group Limited (ASX, ABX) has announced a successful capital raising of approximately $6.05 million through a share placement aimed at accelerating its key projects in Tasmania. The placement, priced at $0.081 per share, attracted strong support from a mix of new Australian and international institutional investors, as well as high-net-worth individuals. Board and management also committed $100,000, subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM) in January 2026.
Advancing Rare Earths and Clean Chemical Production
The funds will primarily be directed towards advancing the Deep Leads rare earth project, an ionic absorption clay resource notable for its high concentrations of critical heavy rare earth elements dysprosium and terbium. These elements are vital for high-tech and clean energy applications, positioning ABx to tap into growing demand amid global supply chain shifts.
In parallel, ABx will construct and commission the ALCORE pilot plant in Bell Bay, Tasmania, designed to produce hydrogen fluoride from an aluminium smelter by-product. This innovative approach not only adds value to industrial waste but also aligns with the company’s commitment to sustainable and cleaner chemical production.
Placement Structure and Investor Incentives
The placement involves issuing 74.7 million new fully paid ordinary shares, representing a significant capital injection at a discount to recent trading prices. Subject to shareholder approval, investors will receive attaching options exercisable at $0.10 per share, expiring in November 2027. Alpine Capital Pty Ltd acted as Lead Manager, earning a 6% fee and options as part of their mandate.
Tranche 1 of the placement will proceed under existing ASX placement capacities, while Tranche 2, including shares issued to directors and the attaching options, awaits shareholder approval. This two-tranche approach balances expediency with governance oversight.
Progress and Outlook
ABx has already commenced production of its first mixed rare earth carbonate (MREC) product through ANSTO, using a bulk sample from Deep Leads. Early results indicate a promising high proportion of dysprosium and terbium, which will be shared with potential customers and offtake partners to secure commercial agreements.
Managing Director Mark Cooksey highlighted the significance of the capital raise, emphasizing the strong investor confidence and the company’s readiness to accelerate development milestones. The dual focus on rare earths and fluorine chemicals positions ABx at the intersection of critical materials supply and sustainable industrial chemistry.
Bottom Line?
With fresh capital secured, ABx is poised to advance its rare earth and clean chemical projects, but shareholder approval and market response remain key next steps.
Questions in the middle?
- Will shareholder approval for the attaching options and director participation be secured at the January EGM?
- How soon can ABx translate pilot plant commissioning into commercial production and revenue?
- What progress is expected on offtake agreements for the Deep Leads rare earths product?
