ABx Group (ASX:ABX) has secured binding commitments for a $4.1 million capital raising to advance its Deep Leads Rare Earths Project and construction of the ALCORE pilot plant in Tasmania.
The capital raising comprises a $2.1 million placement to professional and sophisticated investors and a fully underwritten $2 million share purchase plan (SPP) for eligible shareholders.
Strategic partner Good Importing International (GII) committed $1 million to the placement, while board and management contributed $100,000, subject to shareholder approval, and intend to commit an additional $60,000 to the SPP.
Under the terms of the placement, ABx will issue approximately 67.7 million new shares at $0.031 per share, representing an 18% discount to the 15-day volume-weighted average price (VWAP) of $0.0378. Participants will receive one attaching option for every two shares, exercisable at $0.046 and expiring three years from issue.
Alpine Capital acted as lead manager for the placement and fully underwrote the SPP.
Placement shares will mostly be issued under existing ASX Listing Rule 7.1 and 7.1A capacity. Meanwhile, shareholder approval for the $100,000 board placement shares and all capital raising options will be sought at an extraordinary general meeting scheduled for 29 October 2026.
The SPP offers eligible Australian and New Zealand shareholders up to $30,000 worth of shares at the lower of the placement price or 95% of the five-day VWAP up to the closing date. SPP participants will also receive one free attaching option for every two shares.
Managing Director Mark Cooksey says the funding provides additional financial capacity to accelerate key development priorities across rare earths and ALCORE.
“We have important work programs underway across both businesses, from advancing Deep Leads and our rare earths commercialisation strategy to progressing ALCORE’s continuous pilot plant at Bell Bay. This funding puts us in a stronger position to maintain that momentum,” Cooksey says.
“We are particularly pleased to have the continued support of GII through its $1 million investment in the placement. GII is already an important strategic partner to ABx through our bauxite assets, and its participation further strengthens that relationship.”
The SPP prospectus is expected to be dispatched on 28 September 2026, with the offer closing on 23 October 2026.
ABx Group is developing heavy rare earths, hydrogen fluoride, and bauxite projects in Australia.
Write to Paula Fabe at Mining.com.au
Main image: ABx Group
