ABx Group Limited has secured firm commitments to raise $3 million through a placement to sophisticated and professional investors, with the fresh funding to accelerate the advancement of its rare earths project in Tasmania.
The ASX-listed company (ASX: ABX) said the placement was strongly supported, with participation from several institutional investors as well as binding commitments from its board and management.
The placement is expected to bolster ABx’s efforts in progressing the Deep Leads rare earth project, which the company describes as one of its cornerstone assets.
Proceeds from the capital raising will be allocated to a number of development milestones.
These include completing scoping studies for the rare earths initiative, expanding exploration drilling to further define the resource base, and progressing negotiations towards potential offtake agreements.
In addition, ABx said the funding will provide working capital and meet costs associated with the offer.
Managing Director and Chief Executive Officer Mark Cooksey welcomed the outcome of the raising, highlighting the strong endorsement from both new and existing backers.
“We are delighted with the strong investor support for this placement, enabling ABx to accelerate the development of its outstanding ionic clay rare earths project in Tasmania,” Cooksey said.
“We appreciate the confidence of our placement participants, our directors and our shareholders as we advance towards strategic project partnerships and near-term production.”
The Deep Leads project, situated in northern Tasmania, is the company’s flagship rare earths development and has been central to ABx’s strategic push into critical minerals.
The project has attracted attention due to its potential role in supplying rare earth elements, which are considered essential to new technologies including renewable energy systems, electric vehicles and advanced electronics.
ABx has previously identified ionic clay-hosted rare earth mineralisation across its tenements, which, if commercially developed, could provide a domestic source of these critical commodities.
Ionic clay deposits have gained prominence globally for their typically lower-cost extraction profile compared to hard rock rare earth deposits.
The company said momentum generated by the new capital raising will support engagement with potential partners as it looks to establish strategic alignments and define a pathway to production.
With the expanded funding base, ABx is also positioned to accelerate exploration beyond Deep Leads, with potential for further discoveries across its wider Tasmanian portfolio.
The placement underlines ongoing investor interest in emerging rare earth opportunities within Australia, particularly those seeking to build secure supply chains for critical minerals.
At the same time, direct participation from ABx’s board and management has been pitched as a vote of confidence in the company’s long-term strategy.