ABx Group (ASX:ABX) has received firm commitments, supporting its $3 million placement to advance the Deep Leads Project in Tasmania.
The company will issue 46.87 million shares at $0.06 per share, representing a 16.9% discount to the last trading price and 24.9% discount to the five-day volume weighted average price (VWAP).
Alpine Capital acted as the lead manager for this placement, returning 6% of the total proceeds raised from a 2% management fee and 4% selling fee, as well as earning 7.81 million options, issued under the placement terms.
The company’s board has deployed $100,000 in binding commitments to support the placement.
ABx will issue 25.16 million shares under the first tranche, before delegating the remaining 1.52 million shares to directors, along with options, following shareholder approval at an upcoming general meeting in October.
Shareholders will elect whether participants should be eligible to receive one free attaching option per every new share allocated, holding an exercise price of $0.10 to expire two years from the issue date.
Placement options will be able to provide the company with an additional $4.69 million for working capital if exercised.
CEO Mark Cooksey says the company is pushing towards strategic project partnerships and near-term production for the Deep Leads Project due to the support from this placement.
“We are delighted with the strong investor support for this placement, enabling ABx to accelerate the development of its outstanding ionic clay rare earths project in Tasmania,” Cooksey says.
ABx intends to use funds raised to bolster the Deep Leads Project, activities include a completed scoping study, exploration drilling at new tenements, and the securing of offtake agreements.
As reported by Mining.com.au, the company recently submitted a 100kg bulk sample of ionic absorption clay rare earth material from the project to the Australian Nuclear Science and Technology Organisation (ANSTO).
ABx is focused on delivering materials required for a cleaner future, including heavy rare earths, fluorine chemicals, and bauxite.
Write to Maddison Elliott at Mining.com.au
Images: ABx Group
