Ionic Rare Earths Limited (ASX: IXR) has announced that it has received firm commitments to raise A$5.5M through a placement of approximately 423M shares at A$0.013 per share. The placement was strongly supported by both key existing shareholders.
Managing Director, Tim Harrison, commented, “We have received such a significant amount of interest from various magnet manufacturers, alloy makers and OEM’s who are interested in utilizing our world-class magnet rare-earth recycling technology for access to secure, sustainable, and traceable rare earth supply. Demand at our operational demonstration plant in Belfast is now full for the next 18 months with potential partner trials advancing to plan.”
Participants will receive three free attaching unlisted options for every four shares issued with an exercise price of A$0.02 and a four-year term which will see 317,307,690 unlisted options.
Further, the issue price under the placement represents a 25.3% discount to the volume weighted average price of IonicRE shares over the past 10 trading days.
The company will use the funds raised to advance the commercial partnership negotiations, magnet recycling demonstration plant enhancements, and the completion of the feasibility study at Ionic Technologies, plus activity at the Makuutu demonstration plant tied to offtake negotiations and working capital.
The joint lead managers will be entitled to receive a fee equal to 6% of the placement proceeds, excluding the amount subscribed by Mr. Brett Lynch. Subject to shareholder approval, the company proposes to issue 20M unlisted options to the joint lead managers with an exercise price of A$0.02 and expiring four years after the date the options are issued.
To find out more, please visit www.ionicre.com.au
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