ABx closes $2 million SPP with underwriter covering the shortfall

Shareholder Take-Up Falls Short of the SPP Cap

ABx Group Limited (ASX:ABX) has completed its $2 million Share Purchase Plan after eligible shareholders applied for about $1.1 million of new shares, leaving roughly $900,000 to be placed with investors introduced by underwriter Alpine Capital.

The SPP issued 51,616,531 shares at $0.021 each, representing 95% of ABx’s five-day volume-weighted average price through the 23 October closing date. The outcome completes the underwritten portion of a broader capital raising first announced in September, when the company outlined plans to raise up to $4.1 million through a placement and the SPP. The earlier $2 million underwritten SPP had been structured at the lower of 3.1 cents or 95% of the relevant VWAP.

New Shares and Options Expand the Capital Structure

Including the shortfall placement, ABx issued 95,238,047 new ordinary shares and 47,619,075 free-attaching ABXO options. The company separately issued another 190,476,094 ABXO options to Alpine Capital and its nominees, while also completing a shareholder-approved placement of shares and options to a director.

The announcement does not state the exercise price or expiry date for the options, nor the size and terms of the director placement. Those details matter because the securities could materially affect the company’s potential dilution, although the filing does not provide a resulting fully diluted share count.

Funding Arrives as ALCORE and Deep Leads Advance

ABx said the broader raising was intended to support its Deep Leads rare earths project, the ALCORE hydrogen fluoride pilot plant, working capital and associated costs. The company has recently reported that major ALCORE process equipment is substantially manufactured and that commissioning remains targeted for the second quarter of 2027, subject to construction, safety and approval work. The completed $4.1 million capital raising was also designed to fund those two development tracks.

Managing director and chief executive Dr Mark Cooksey thanked shareholders for their support, saying their commitment remained important to ABx’s growth. The more concrete measure for investors will be how the new capital is allocated across the projects and whether the associated options ultimately become a source of additional funds or primarily a further claim on future equity.