Australian Rare Earths Limited has raised approximately $6 million through a strategic share placement to advance its Koppamurra Rare Earths Project, underpinning its role in diversifying global rare earth supply chains.
- Raised $6 million via share placement at $0.185 per share
- Funds to support pre-feasibility study, pilot plant operation, and mining lease application
- Placement includes free-attaching options pending shareholder approval
- Recent technical breakthrough achieving 98.6% pure Mixed Rare Earth Oxide
- Strategic partnership with ANSTO for pilot-scale processing facility
Strategic Capital Raise
Australian Rare Earths Limited (ASX, AR3) has successfully secured approximately $6 million through a share placement to institutional and professional investors. The placement, priced at $0.185 per share; a discount of nearly 12% to the last closing price; will see the issue of around 32.6 million new shares. This capital injection is designed to provide the company with a robust financial runway to advance its flagship Koppamurra Rare Earths Project in South Australia and Victoria.
Advancing Key Milestones
The funds raised will be directed towards critical next steps including the completion of a pre-feasibility study, operation of a pilot plant at the Australian Nuclear Science and Technology Organisation’s (ANSTO) new Sydney facility, and the submission of a mining lease application. These activities are pivotal in moving the Koppamurra project closer to commercialisation, reinforcing AR3’s commitment to establishing a diversified and secure supply of rare earth elements outside of China.
Technical Breakthroughs and Partnerships
In January 2026, AR3 announced a significant technical breakthrough, successfully producing a 98.6% pure Mixed Rare Earth Oxide (MREO) via a low-risk oxalate precipitation process. This achievement not only validates the project’s processing pathway but also enhances its attractiveness to investors and strategic partners. Furthermore, AR3’s selection as ANSTO’s first customer for its pilot-scale rare earth processing facility underscores the company’s leading position in the sector and provides a valuable platform for scaling up operations.
Financial and Strategic Implications
The placement also includes one free-attaching option for every two shares issued, exercisable at a 50% premium to the placement price, subject to shareholder approval. This structure offers potential upside for investors while aligning interests towards long-term value creation. Alongside existing cash reserves and a $3.25 million government grant tied to milestone achievements, AR3’s strengthened balance sheet positions it well to navigate the regulatory landscape and continue exploration activities across its broader portfolio, including uranium prospects in South Australia and rare earth projects in North Queensland.
Looking Ahead
Managing Director and CEO Travis Beinke highlighted the strong investor confidence reflected in the placement and emphasised the company’s readiness to execute on its near-term objectives. As global demand for heavy rare earths intensifies amid the clean energy transition, AR3’s progress at Koppamurra and its strategic partnerships could prove instrumental in delivering a new, diversified supply chain for these critical materials.
Bottom Line?
With fresh capital and technical momentum, Australian Rare Earths is poised to accelerate its journey toward becoming a key player in the rare earths market.
Questions in the middle?
- Will shareholder approval be granted for the free-attaching options at the upcoming EGM?
- How soon can AR3 expect regulatory approvals for the Koppamurra mining lease application?
- What are the timelines and scale-up plans for the pilot plant operations at ANSTO’s facility?