RareX Secures $2M at Premium to Boost Rare Earths Projects

Capital Raise Highlights Investor Confidence

RareX Limited (ASX, REE) has announced a successful capital raise of A$2 million through a share placement priced at A$0.022 per share, representing a notable 12% premium to the 15-day volume weighted average price. The placement attracted strong interest from both existing and new institutional investors, underscoring confidence in RareX’s expanding portfolio of rare earth and associated critical mineral projects.

Strategic Funding for Key Rare Earth Projects

The funds raised will be directed towards advancing exploration and development activities at several of RareX’s flagship projects. These include drilling and further exploration at Mt Mansbridge, which targets heavy rare earth elements, and progressing licensing and commercial studies at the Cummins Range carbonatite project, notable for its rare earths, gallium, scandium, and phosphate resources. Additionally, RareX will continue its consortium-led efforts with Iluka Resources to secure the Mrima Hill project in Kenya, which holds rare earth and niobium potential.

Placement Structure and Next Steps

The placement involves the issuance of approximately 90.9 million new shares, with 80 million shares issued under existing placement capacity and the remaining 10.9 million shares subject to shareholder approval at a general meeting scheduled for late August 2025. Alongside the shares, investors will receive attaching options exercisable at A$0.035, also pending shareholder approval. The tranche 1 settlement is expected imminently, with tranche 2 and option issuance contingent on shareholder consent.

Market Implications and Outlook

RareX’s CEO and Managing Director, James Durrant, highlighted the timing and pricing of the raise as highly effective, reducing capital pressures and enabling the company to pursue its strategic objectives in the competitive rare earths sector. The premium pricing and oversubscription reflect strong market appetite for RareX’s assets, which are positioned within a critical minerals landscape increasingly vital to global supply chains, particularly for technologies reliant on rare earth elements.

With exploration programs underway and partnerships in place, RareX is poised to deliver further value as it advances these projects through drilling, licensing, and commercialisation phases. The upcoming shareholder meeting will be a key event to watch, as approval of the second tranche and options will unlock the full capital raise potential.