Australian Strategic Materials (ASM) has received firm commitments for an institutional placement to raise about $30 million, with demand significantly exceeding shares available.
The company will also offer eligible existing ASM shareholders the opportunity to participate in a non-underwritten share purchase plan to target a further $10m.
Funds raised from the capital raising, together with existing cash and sources of liquidity, will be used to accelerate development of ASM’s Korean Metals Plant (KMP) and its Dubbo project.
ASM chief executive officer Rowena Smith welcomed the strong support from new and existing investors.
“With the Korean Metals Plant producing commercial quality metals and the Dubbo Project ready for development, ASM is well positioned to secure project financing and execute our mine to metals strategy,” she said.
“The commercial environment for rare earths, critical minerals and high-tech metals goes from strength to strength, and with Dubbo’s strong business case, we are looking forward to the opportunity to be a valuable contributor to the global energy transition.”
The capital raising is being supported by the company’s board with all directors confirming they will participate.
Company chair lan Gandel and non-executive director Kerry Gleeson have committed to subscribe for $4 million and $450,000 respectively in the placement.