ABx Group (ASX:ABX) is conducting a share purchase plan (SPP) to raise up to $500,000 at the same price as the placement completed in September 2023 to advance its Deep Leads/Rubble Mound Project in Tasmania.
The offer price will be $0.08, a premium of 2.4% to the 30-day volume weighted average price (VWAP) to 24 November ($0.0781).
ABx, which has a market capitalisation of $17.44 million, says shareholders can purchase shares totalling up to $30,000.
Pursuant to a prospectus to be issued by ABx, shareholders will also be able to apply for one free-attaching option for every 2 shares applied for under the SPP offer.
ABx directors that hold shares have indicated that they will be participating in the SPP at the maximum level permissible.
The full details will be included in the SPP offer documents which will be sent to eligible shareholders on 4 December 2023.
The funds raised will be applied to advance its rare earths project, namely Deep Leads/Rubble Mounds, as well as general working capital.
Its rare earths resource in Tasmania is a true ionic absorption clay deposit. Desorption tests conducted by the Australian Nuclear Science and Technology Organisation (ANSTO) found that the ABx deposit has the ‘highest’ extractions under relatively neutral conditions reported from any clay-hosted rare earth deposit in Australia.
ABx Group is a high-tech Australian company focused on ionic adsorption clay rare earths, hydrofluoride and aluminium fluoride.
Write to Aaliyah Rogan at Mining.com.au
Images: ABx Group