Investor Fidelity International has taken a 9.9% stake in ASX-listed American Rare Earths, subscribing for 41.1-million in the junior company, for an investment of A$6.1-million.
The share placement will be conducted at a price of 14.8c a share, representing a 4.5% discount to American Rare Earth’s last closing price prior to the placement, and a 9.6% discount to the five-day volume weighted average share price.
Funds will be used to complete metallurgical test work, fund drilling activities and resource expansion at American Rare Earth’s La Paz project, in Arizona.
“Our vision is to build the next major rare earth and critical minerals company and play a key role securing supply for the US. We are delighted to have the confidence of a high- quality, long term institutional investor such as Fidelity to support our growth plans,” said MD and CEO Chris Gibbs.
“Fidelity is a well- known investment partner in our industry and such a large initial stake demonstrates their commitment that we have the right team and world class assets to deliver results.
“The opportunity to bring Fidelity onto the register means we can accelerate the planned scope of works for both the La Paz and Halleck Creek rare earth element projects.”