Shareholder Approval Key as ABx Seeks to Fund Critical Rare Earths Expansion

• A$3 million raised via share placement at a 17% discount
• Funds targeted for Deep Leads project scoping, drilling, and offtake deals
• 46.9 million new shares issued with attaching options subject to shareholder approval
• Strong institutional, high-net-worth, and board participation
• Promising test results highlight high extraction rates of critical heavy rare earths

Strong Backing for Rare Earths Ambitions

ABx Group Limited (ASX – ABX) has successfully secured firm commitments to raise A$3 million through a share placement aimed at accelerating development of its Deep Leads heavy rare earths project in Tasmania. The placement, priced at A$0.064 per share, represents a notable discount to recent trading prices, reflecting both the urgency and confidence investors have in the company’s growth prospects.

The capital injection will primarily fund the completion of a scoping study, expanded exploration drilling across new tenements, and efforts to secure offtake agreements with prospective customers. These steps are critical as ABx moves closer to commercialising its ionic adsorption clay rare earths resource, which is strategically important given the global demand for heavy rare earth elements like dysprosium and terbium.

Investor Confidence and Shareholder Engagement

The placement attracted participation from a mix of institutional investors, high-net-worth individuals, and importantly, board and management, who have committed $100,000 subject to shareholder approval at an Extraordinary General Meeting scheduled for October 2025. This shareholder meeting will also consider the issuance of free attaching options exercisable at A$0.10, potentially raising an additional $4.7 million if fully exercised.

Alpine Capital Pty Ltd acted as lead manager for the placement, earning a 6% fee and receiving options on similar terms to those offered to placement participants. The placement will be executed in two tranches, with the second tranche involving shares issued to directors and the options subject to shareholder approval, underscoring the company’s commitment to governance and transparency.

Promising Test Results Bolster Project Outlook

ABx has already delivered a 100 kg bulk sample of ionic adsorption clay rare earth material from Deep Leads to ANSTO, Australia’s nuclear science and technology organisation. Preliminary test results indicate extraction rates exceeding 70% for dysprosium and terbium, two of the most critical heavy rare earth elements for advanced technologies. ANSTO is expected to produce a mixed rare earth carbonate sample by Q4 2025, which will be shared with potential customers eagerly awaiting these outcomes.

Managing Director Mark Cooksey expressed optimism about the strong investor support, highlighting the company’s progress towards strategic partnerships and near-term production. The successful placement and encouraging test data position ABx well within the competitive landscape of rare earths supply, a sector increasingly vital for clean energy and high-tech industries.

Looking Ahead

With funds secured and key milestones approaching, ABx’s next steps will focus on advancing the Deep Leads project through detailed studies and customer engagement. The upcoming shareholder meeting will be pivotal in confirming the full capital structure and option arrangements, setting the stage for the company’s next phase of growth.

Bottom Line?

ABx’s capital raise and promising test results mark a decisive step forward, but shareholder approval and market response will shape the project’s trajectory.

Questions in the middle?

• Will shareholders approve the second tranche and attaching options at the October EGM?
• How will potential offtake agreements shape ABx’s commercialisation timeline?
• What impact will the discounted placement price have on share price and investor sentiment?