Ionicre Completes $30M Placement

Ionic Rare Earths Limited (ASX: IXR) (“IonicRE” or “the Company”) is pleased to announce it has received firm commitments to raise $30 million by way of a share placement at $0.074 (“Placement”) in a significantly oversubscribed issue. The Placement was strongly supported by both key existing shareholders and new global institutional investors from Europe, North America, Asia and Australia.

• Placement to raise $30.0 million to new global Institutions and existing Investors
• Funds raised will support:
  • Finalisation of the updated Mineral Resource Estimate for the Makuutu Rare Earth Project due this quarter
  • Completion of the Makuutu Feasibility Study and application for mining licence
  • Accelerating development work for the newly acquired Seren Technology Rare Earth separation and refining and magnet recycling businesses
  • Entry into the Rare Earth supply chain in the United States and Europe

Canaccord Genuity (Australia) Limited acted as Global Bookrunner and Lead Manager to the Placement. Sprott Capital Partners LP acted as Co-Manager to the Placement.

IonicRE Managing Director Tim Harrison commented that the strong response reflected the potential of the Company as a unique magnet and heavy rare earth development opportunity with the potential to become an end to end vertically integrated rare earth and magnet supply chain.

“This is a very positive milestone for IonicRE and our plans to develop the Makuutu Rare Earths Project and to take Seren Technology forward. The extremely strong support we received from institutional and existing shareholders allows us to now commit to accelerating development timeframes for the both the Makuutu Rare Earths Project and the newly acquired heavy rare earth separation and magnet recycling businesses of Seren Technologies. The global interest in the capital raising is a testament to the potential of the Company and we are excited to secure this support from institutional investors at this defining moment of the company’s development.”

“We are seeing a significant step change in interest for the magnet rare earth and heavy rare earth content from Makuutu. With a greater end user understanding on supply risk for key magnet rare earths, we believe that the Company’s integrated business will become an increasingly important strategic asset as demand for a secure, sustainable supply of magnet and heavy rare earths increases and geopolitical tensions remain high.”

Click here for the full ASX Release

This article includes content from Ionic Rare Earths Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.