American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF) has raised $13.5 million via a strongly supported institutional placement, providing a significant runway to execute on project development milestones to advance its flagship Halleck Creek Rare Earths Project in Wyoming, USA.
The funding will support the company in developing environmentally friendly and cost-effective extraction and processing methods to meet the rapidly increasing demand for resources essential to the clean energy transition and US national security.
Strongly supported by new and existing institutional, professional and sophisticated investors, both domestically and offshore, the company has received firm commitments for a placement of 45 million new fully paid ordinary shares at an issue price of A$0.30 to raise the A$13.5 million.
Proceeds from the placement, together with existing cash, will be used to fund the continued development of the Halleck Creek project. Specifically, this will include mineral resource and extensional drilling, pre-feasibility study (PFS), metallurgical test work and process development, heritage/permitting/environmental activities, and for general working capital purposes.
Overwhelming support received
American Rare Earths CEO Donald Swartz said: “I am thrilled to announce the successful completion of our institutional placement, which has raised A$13.5 million.
“The overwhelming support from both existing shareholders and new institutional investors underscores the confidence in our vision and the potential of our projects, in particular the Halleck Creek Rare Earth Project.
“This placement provides us with the capital to advance our flagship project, Halleck Creek, towards delivering a secure supply of critical minerals to the North American supply chain. We are committed to executing on our project development milestones and are grateful for the support that enables us to further our mission.
“With a focus on environmentally friendly and cost-effective extraction methods, we are well set to meet the escalating demand for resources essential to the clean energy transition and US national security. This milestone marks a pivotal moment in our journey, and we are excited for the opportunities that lie ahead as we continue to drive value for our shareholders and stakeholders alike.”