Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) is aiming to raise A$7 million via a renounceable rights issue and a placement to primarily support the Belrapid magnet recycling project, the Brazilian Viridion joint venture, and the expansion of activities into the United States.
The rights issue is priced at 1.6 cents per share, a 6% discount to both the last close and 30-day volume-weighted average price (VWAP), and includes one option for every share subscribed, exercisable at 2.5 cents and expiring September 30, 2028.
The company has also secured A$1.125 million in commitments from institutional investors and executives through a placement on the same terms, with directors and management contributing around A$635,000.
In a firm reveal of support for the company and its ambitions, directors will subscribe for around $135,000 under the rights issue, while executives will contribute around A$500,000 under the placement.
Details of the rights issue
Ionic Rare Earths is offering shareholders a 1 for 15 renounceable rights issue to raise up to A$6 million before costs. For every share subscribed, eligible shareholders will receive one new option with an exercise price of 2.5 cents, expiring in September 2028.
Shareholders can also apply for additional shares and options beyond their entitlement. Rights will be tradeable from September 18 until October 2, 2025.
The offer closes on October 9, 2025, with results to be announced on October 15.
Placement commitments
Alongside the rights issue, IXR has raised A$1.125 million from institutional, sophisticated and professional investors, as well as executives.
Approximately 70.3 million shares and the same number of options will be issued under the company’s existing placement capacity.
The placement is priced at 1.6 cents per share, representing a 6% discount to the 15-day VWAP.
Options will have the same terms as those under the rights issue and placement shares and options will be issued at the same time as those under the rights issue.
Use of funds
The money raised will be allocated to several strategic priorities, including advancing early works and financing for the Belrapid magnet recycling project, developing the Viridion joint venture in Brazil, and expanding corporate and supply chain development activities in the United States.
Funds will also support minor ongoing costs at the company’s Makuutu Heavy Rare Earth Project in Uganda and provide additional working capital.
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