Australian Rare Earths Limited (ASX:AR3) Completes $3.6M Rights Issue
Funds Raised and Share Allocation
Australian Rare Earths Limited (ASX:AR3) has successfully raised $3.6 million through its non-renounceable rights issue. Of this, $3.35 million (93%) was raised from existing shareholders, while the remaining $254,000 was secured from professional and sophisticated investors.
Project Developments
The capital injection will accelerate AR3’s uranium exploration at the Overland Project and advance testwork and pre-feasibility studies at the Koppamurra Rare Earth Project. The Koppamurra project has also received a $5 million grant under the Australian Government’s Critical Minerals Development Program.
Executive Comments
AR3 Chairman, Angus Barker, stated, “The Board’s desire to prioritise our existing shareholders and provide them the first opportunity to consider investing additional funds for the Company’s development via a rights issue has been clearly validated. The take up rate was exceptional amidst general market turmoil. We sincerely thank our shareholders for their strong show of support.
I am also delighted to welcome to our register the two new, high-quality shareholders who have taken up the small shortfall.
This favourable environment, coupled with the inherent time-to-market edge and relatively lower capex advantages of our ionic clay-hosted deposit at Koppamurra, together with early drilling success at our Overland Uranium Project, positions AR3 to capitalise on the growing demand for diverse, resilient and sustainable energy transition minerals. The strong support for A R 3’s rights issue is clear recognition of the Company’s potential.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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