Ionic Rare Earths Ltd. (ASX: IXR, OTC: IXRRF), a key player in the rare earths sector, has secured A$5.5 million in funding through a share placement. The funding will be utilized to enhance the company’s innovations in magnet recycling technologies and advance its Makuutu ionic adsorption rare earths project in Uganda. The funds will primarily be allocated to the improvement of Ionic Technologies’ Magnet Recycling Demonstration Plant in Belfast, UK, which is currently producing separated magnet rare earth oxides (REOs). Additionally, the feasibility study for a full-scale plant, projected to be completed by mid-2024, will also benefit from this placement. Tim Harrison, Managing Director, stated, “We have witnessed significant interest from numerous magnet manufacturers, alloy makers, and OEMs seeking to leverage our world-class magnet rare-earth recycling technology for access to a reliable, sustainable, and traceable supply of rare earths.” “The demand at our operational demonstration plant in Belfast is currently at full capacity for the next 18 months, with potential partner trials progressing as planned,” Harrison added. “Moreover, our upstream project, the Makuutu Rare Earths Project, is also making progress, with several offtake negotiations with partners who will evaluate our MREC produced at the Makuutu demonstration plant. We are on the cusp of a substantial increase in shareholder value and sincerely appreciate the support of existing shareholders in funding this placement.” The placement was well-received by existing shareholders, demonstrating strong confidence in IonicRE’s strategic initiatives and technological advancements. The issue price represents a 25.3% discount to the volume-weighted average price of IonicRE shares over the past 10 trading days, with shares expected to be issued by May 1. Through its Makuutu demonstration plant, IonicRE is advancing several offtake negotiations, which are crucial as the company prepares for a substantial increase in shareholder value. The placement includes an entitlement of three free attaching unlisted options for every four shares issued, with an exercise price of A$0.02 per option. The placement was managed by Canaccord Genuity (Australia) Limited and MST Financial Services Pty Limited, who served as joint lead managers.
Ionic Rare Earths Secures A$5.5 Million for Magnet Recycling and Uganda Rare Earths Project
