Brazil-focused critical minerals explorer Axel REE (ASX:AXL) yesterday (23 July 2024) made its debut on the Australian Securities Exchange (ASX), raising $13.3 million in an initial public offering (IPO).
Bell Potter Securities acted as lead manager to the listing.
Under the IPO, the company issued 66.41 million shares at $0.20 each. Upon completion, Axel REE will have 174.45 million shares on issue with a market capitalisation of $34.9 million.
Axel REE is focused on discovering and developing critical minerals resources, primarily rare earths in Brazil. The company’s assets lie in the Minas Gerais state and are all located in the same region as some ionic absorption clay-hosted rare earths discoveries in recent years.
Axel REE will primarily use the proceeds from the IPO to fast-track exploration and development of the Caladão Project to a maiden resource and advance the Caldas Project with systematic drilling campaigns. The funds will also be used for exploration activities at the Itiquira and Corrente projects and general working capital.
Axel REE: Brazilian explorer debuts on ASX
Non-executive Chairman Paul Dickson says despite the volatile period in the global markets, interest in the company’s IPO has been “exceptional” and there was a strong mix of institutional, sophisticated, and retail investors.
“The rare earths sector in Brazil is growing rapidly following significant discoveries of high-grade ionic adsorption clay-hosted mineralisation in recent years,” Dickson.
“Axel has an opportunity to become the next major player in the Brazilian rare earths exploration sector with plans to advance two major clay-hosted rare earths projects whilst completing preliminary work on a further two rare earths projects showing significant upside potential.
“With a clear exploration strategy in place and a highly experienced board behind it, we are fully funded to commence extensive drilling programs and we look forward to delivering strong results for our supportive shareholders.”
Brazilian explorer Axel REE debuts on the ASX with a portfolio of projects covering more than 1,000km2 in Brazil.
According to HLB Mann Judd, the challenging economic environment continues to weigh heavily on the market for IPOs in 2024, with higher interest rates and persistent inflation restricting listing activity.
H1 2024 follows a lacklustre year for listings in 2023.
“Despite the low activity, the good news is that the capital raised was much higher than the first half of 2023, and almost the same as the full year of 2023 due to the presence of two larger listings during the period,” HLB Mann Judd notes in its IPO Watch Australia Mid-Year Report.
Write to Aaliyah Rogan at Mining.com.au
Images: Axel REE
