Australian Strategic Materials is on track to raise $30 million from investors to via a share placement to advance its Dubbo rare earths project in NSW.
Australian Strategic Materials is on track to raise $30 million from investors to via a share placement to advance its Dubbo rare earths project in NSW.
Bell Potter Securities was lead manager to the placement, which had shares on offer at $1.73, representing a 12.4 per cent discount on ASM’s last closing price.
A follow-up share purchase plan will seek to raise a further $10 million at the same price.
Among the capital raising’s institutional backers were ASM chair and major shareholder Ian Gandel and non-executive director Kerry Gleeson, who have subscribed for $4 million and $50,000 worth of shares, respectively.
Proceeds from the raising will go towards ASM’s rare earths processing plant in Korea and its Dubbo rare earths project in NSW.
ASM chief executive officer Rowena Smith said there had been strong support for the raising.
“With our Korean Metals Plant producing commercial quality metals and our Dubbo Project ready for development, ASM is well positioned to secure project financing and execute our mine to metals strategy,” she said.
“The commercial environment for rare earths, critical minerals and high-tech metals goes from strength to strength, and with Dubbo’s strong business case, we are looking forward to the opportunity to be a valuable contributor to the global energy transition.”
ASM raised more than $100 million in March 2021.
On the market, ASM shares were down 9.11 per cent to trade at $1.80.
