How Will Ionic Rare Earths Limited Use the Funds from the $2 Million Placement?
Ionic Rare Earths Limited
2 4

How Will Ionic Rare Earths Limited Use the Funds from the $2 Million Placement?

Ionic Rare Earths Limited: Fueling the Future with a $2 Million Placement

In a bold step to further its innovative projects in rare earth exploration and technology, Ionic Rare Earths Limited (ASX: IXR), also known as IonicRE, announces a significant capital raise. The Melbourne-based company, poised to become a key player in the net-zero carbon technologies market, has secured approximately $2 million through a share placement.

Placement Details: A Vote of Confidence

The appointment of Mr. Brett Lynch as Executive Chairman on January 24, 2024, marks a pivotal moment for IonicRE. Under the terms of his engagement, Mr. Lynch, a director of the company, has committed to a substantial $1. 5 million placement.

Story Continues.. after this ad because we need some dollarydoos

This investment, which translates into the issue of 83. 3 million shares at $0. 018 each, is contingent upon shareholder approval at a General Meeting.

Sophisticated Investors: Strengthening the Financial Backbone

IonicRE has also garnered significant interest from sophisticated investors, raising an additional $500,000. This is facilitated through the issue of approximately 27. 8 million shares, priced at $0. 018 each, reflecting the last sales price on January 23, 2024. This tranche of the placement will utilize the company's existing placement capacity, with issuance expected around January 31, 2024.

Use of Funds: Paving the Way for Advancements

The funds raised are earmarked for advancing the Makuutu Rare Earths Project in Uganda, which IonicRE is set to own 94% of by H1 2024. This project, already supported by tier-one infrastructure, promises to be a scalable and sustainable supplier of magnet and heavy rare earths oxides (REO).

Ionic Technologies: A Technological Edge

In addition, the investment will boost the activities of Ionic Technologies International Limited, a fully-owned UK subsidiary. Ionic Technologies has developed processes for the separation and recovery of rare earth elements (REE) from mining ore concentrates and recycled permanent magnets. This includes the commercialization of near-complete extraction technologies for end-of-life magnets and waste to high-value REO products.

The Makuutu Project: A Rare Earths Powerhouse

With the positive Stage 1 Definitive Feasibility Study (DFS) announced in March 2023, the Makuutu project is on a fast track to becoming a significant player in the REO market. The 35-year life initial project is set to produce a 71% rich magnet and heavy rare earth carbonate product basket.

Ionic Technologies: Revolutionizing REE Extraction

Acquired in 2022, Ionic Technologies is already making waves with its rare earth element extraction processes. The Demonstration Plant, launched in June 2023, signifies a first-mover advantage in the industrial extraction of REEs from recycling.

A Three-Pillar Strategy: Completing the Circular Economy

IonicRE's ambitious strategy encompasses the development of its own magnet and heavy rare earth refinery. This plan aims to separate the unique Makuutu basket into a full spectrum of REOs plus scandium, thus completing the circular economy of sustainable and traceable magnet and heavy rare earth products.

IonicRE's Bold Vision for the Future

Ionic Rare Earths Limited, with its recent $2 million placement, is reinforcing its commitment to become a leader in sustainable and traceable magnet and heavy rare earth products. This strategic financial move, coupled with innovative technology and exploration projects, places IonicRE at the forefront of the industries critical to electric vehicles, offshore wind turbines, communication, and key defense initiatives. As a participant of the UN Global Compact, the company continues to adhere to principles of responsible business, carving a path towards a sustainable future in rare earths.

Promote your business on our growing investor platform: Advertise With Us

Like

Reply 206 Share