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Highlights
- Ionic Rare Earths secures $1.65 million for rare earths and magnet recycling projects.
- Additional $500,000 targeted through a security purchase plan.
- Projects include innovative recycling facilities in Brazil and Belfast.
Ionic Rare Earths (ASX:IXR) has announced a successful capital raising effort, securing $1.65 million through a share placement. This initiative includes issuing over 235 million shares priced at $0.007 each. In addition, the company has launched a security purchase plan (SPP) aiming to raise up to $500,000, offering eligible shareholders an opportunity to invest at the same placement price.
The share placement received strong support from key sophisticated and institutional stakeholders, highlighting robust confidence in the company's recycling-focused strategy. The placement price reflects a discount of 22% to the November 21, 2024, closing price of 0.9 cents per share and a 26.4% discount to the five-day VWAP of 0.95 cents.
The raised funds will advance Ionic Rare Earths' critical projects, particularly the Belfast magnet recycling project and the Viridion rare earth refining and recycling joint venture in Brazil. These initiatives align with the growing focus on sustainable and efficient resource use, making recycling a pivotal strategy in rare earth material management.
Director Support and Placement Benefits
Demonstrating significant trust in the company’s direction, directors of Ionic Rare Earths have committed $202,000 to the share placement. This commitment is subject to shareholder approval, expected to be secured during an extraordinary general meeting in early 2025.
Participants in the placement will also receive one option for every two shares subscribed. The options, totaling over 117 million, come with an exercise price of $0.011 and an expiry date of December 15, 2027.
Security Purchase Plan for Eligible Shareholders
The SPP offers registered shareholders in Australia and New Zealand, as of November 25, 2024, the opportunity to purchase shares without brokerage fees. For every two SPP shares subscribed, participants will also receive an option exercisable at 1.1 cents with the same expiration date of December 15, 2027.
The SPP aims to raise $500,000, with shareholders eligible to apply for up to $30,000 worth of shares. These new shares will rank equally with the company’s existing shares, ensuring seamless integration into the current structure.
Focus on Recycling Innovation
Ionic Rare Earths is advancing two core recycling initiatives. The Belfast project focuses on magnet recycling, while the joint venture in Brazil with Viridis Mining and Minerals (ASX:VMM) is building a rare earth separation and recycling facility. These projects utilize Ionic Technologies' tested separation technology, which has shown promising results at the Belfast Demonstration Plant.
By leveraging these funds, Ionic Rare Earths is positioned to expand its innovative recycling footprint, addressing the rising demand for sustainable resource solutions.
