ABx Group raises $2.9M to fund Tasmania rare earths and pilot plant
What's the deal? ABx GroupDealroom has a profile for this one. Try Dealroom → (ASX: ABX) has secured binding commitments for a post-IPO equity raise of US$2.65M, anchored by strategic partner Good Importing International with a US$647.1K commitment. The money will advance its rare earths development and ALCORE pilot plant construction in Tasmania.
How is it structured? The raise splits into a US$1.36M placement to professional and sophisticated investors and a fully underwritten US$1.29M share purchase plan for shareholders. Alpine Capital is lead manager for the placement and underwriter for the SPP.
The placement issues roughly 67.7 million shares at 3.1 cents each — an 18% discount to the 15-day volume-weighted average price. Board and management have committed US$64.7K, subject to shareholder approval, plus US$38.8K under the SPP.
Why now? ABx closed its June quarter with just US$388.2K in cash as ALCORE pilot plant construction advanced, making this raise material to its near-term funding. It began drilling at its Deep Leads rare earths project in early September.
What's the endgame? The funds will advance Deep Leads and support construction of the ALCORE continuous pilot plant at Bell Bay. ABx is pursuing a three-pronged strategy: heavy rare earths supply into Western markets, hydrogen fluoride production from aluminium smelter by-product, and near-term bauxite.
Good Importing International is already a strategic partner through ABx's Queensland bauxite projects, with agreements this year that delivered an initial US$1.75M payment. The company has produced maiden mixed rare earth carbonate and reports positive customer feedback.
What's next? ABx will hold an extraordinary general meeting on or about October 29, 2026, to seek approval for placement options, SPP securities, and related resolutions. The SPP offer closes October 23, with shares expected to trade from November 2.
"We have important work programs underway across both businesses, from advancing Deep Leads and our rare earths commercialisation strategy to progressing ALCORE's continuous pilot plant at Bell Bay," said managing director and chief executive officer Mark Cooksey.
The signal: With Western markets pushing to secure rare earths supply outside dominant incumbents, ABx's raise keeps a small Australian player in the race — funding both exploration and a differentiated pilot plant on a tight cash runway.
Read more: themarketfloor.news
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