Convertible Notes to Raise $3 Million for IonicRE’s Rare Earth Expansion

Capital Raise to Accelerate Rare Earths Development

Ionic Rare Earths Limited (ASX: IXR) has secured firm commitments to raise $3 million through the issuance of convertible notes, a move designed to underpin the company’s expanding portfolio of rare earth projects. The capital raising, subject to shareholder approval at an extraordinary general meeting scheduled for July 2025, reflects IonicRE’s commitment to scaling its operations across key global sites including the UK, USA, Brazil, and Uganda.

The convertible notes offer investors a conversion price set at the lower of 0.9 cents per share or a 20% discount to the volume weighted average price prior to conversion, with an automatic conversion date of June 15, 2027. Notably, the notes are accompanied by options exercisable at 1.1 cents each, expiring in December 2027, providing additional upside potential for investors.

Strategic Use of Funds and Project Highlights

Proceeds from the raise will be directed towards advancing IonicRE’s rare earth extraction and recycling technologies, which are critical to the supply chain of magnet and heavy rare earth elements essential for net-zero carbon technologies. The company’s Makuutu Rare Earths Project in Uganda, where IonicRE is increasing its ownership to 94%, is positioned as a low capital expenditure, scalable supplier of high-value rare earth oxides.

Additionally, IonicRE’s joint venture with Viridis Mining and Minerals Limited in Brazil aims to establish a refinery and magnet recycling facility, further integrating the company’s circular economy approach to rare earths. This strategy aligns with global demand for sustainable and traceable rare earth products used in electric vehicles, offshore wind turbines, and defence applications.

Investor Terms and Governance

The convertible notes are unsecured, non-redeemable, and do not carry voting rights, reflecting a typical structure for such instruments in the mining sector. Ignite Equity Pty Ltd is acting as lead manager and will receive 15 million options on the same terms as the convertible note investors, alongside fees based on 6% of funds raised.

Importantly, the company retains the option to accept funds as a loan pending shareholder approval, with a 7% interest payable if approval is not granted and funds must be repaid. This mechanism provides flexibility while safeguarding investor interests.

Positioning for the Future

Ionic Rare Earths’ capital raising initiative comes at a time when the rare earths market is under intense scrutiny due to geopolitical supply risks and the accelerating demand for clean energy technologies. By securing funding to advance its projects and commercialise proprietary extraction technologies, IonicRE is positioning itself as a key player in the sustainable rare earths supply chain.

Shareholders and market watchers will be keenly observing the outcome of the July EGM, which will determine the immediate trajectory of this capital raising and its impact on the company’s growth ambitions.