ABx Group (ASX:ABX) is raising $6.05 million through a share placement to fund development activities at the Deep Leads Project in Tasmania and construction of the ALCORE pilot plant.
The company will issue 74.69 million shares at $0.081 per share, representing a 17.3% discount to the last trading price and a 25% discount to the 15-day volume weighted average price.
Alpine Capital is acting as the lead manager to the placement, which will be completed over two tranches.
Tranche one will issue 73.46 million shares, before the remaining 1.23 million shares are issued to ABx’s directors, subject to shareholder approval at a general meeting scheduled for January 2026.
ABx board and management have committed to subscribe for up to $100,000 in this placement.
Funds will be deployed to engineering and metallurgical studies, exploration drilling for a resource increase, and to secure offtake agreements for the Deep Leads Project.
Proceeds will also cover construction and commissioning costs of the ALCORE pilot plant to produce hydrogen and fluoride from aluminium smelter bath waste.
ABx is working to produce its first mixed rare earth carbonate (MREC) product from 50kg of a 100kg bulk sample through its ANTSO partnership earlier this month, as reported by Mining.com.au.
Production of the MREC product is expected to be complete before the end of the month.
Mixed rare earth carbonate is a chemical precipitate containing a mixture of rare earth elements, typically in the form of their carbonates. MREC is an intermediate product – after mining and leaching rare earth ore, companies precipitate the REEs into a carbonate form, which can then be sent to separation/refinery plants.
Rare earth refineries (solvent-extraction plants) commonly accept MREC because it’s a standardised, transportable feedstock from which high-purity rare earth oxides and metals can be produced.
Essentially, the quality of the MREC affects how much refiners are willing to pay. The higher the quality, and lower the impurity of the MREC means companies can command a premium.
Write to Maddison Elliott at Mining.com.au
Images: ABx Group
