Australian Strategic Materials Gains Momentum At Dubbo With A$15M Raise

Australian Strategic Materials Ltd (ASX: ASM) has received firm commitments to raise A$15 million via an institutional placement at A$1.16 per share.

The placement saw strong interest from new and existing domestic and international institutional investors.

In addition, ASM has launched an entitlement offer for shareholders to raise up to A$5.2 million at the same price as the placement.

Funds raised will help ASM progress its Dubbo rare earths and critical minerals project in New South Wales towards final investment decision (FID).

Anticipated key dates for the entitlement offer.

Progressing key path activities

ASM Managing Director & CEO Rowena Smith said: “The funds raised under the Offer will go towards demonstrating ASM has the required co-commitments to enable government funding that will be used to progress key critical path activities to take final investment decision for ASM’s Dubbo Project.

“The market’s response has been very encouraging, and we are looking to capitalise on this momentum to accelerate progression towards FID.”

Large resource of rare earths

The Dubbo Project is a large resource of rare earths, zirconium, niobium and hafnium having a life of several decades.

ASM intends to develop the Dubbo Project to produce metal oxides in the form of chemicals, powders and metals.

Last month, ASM appointed global engineering company Bechtel Mining and Metals to conduct Front-End Engineering Design (FEED) services.

Bechtel will progress the design of both the process plant and non-process infrastructure facilities at Dubbo to support ASM start the execution phase.

In parallel, ASM will complete the work required to meet the project environmental impact statement and development consent commitments.

+A$1 billion funding support

ASM has already secured non-binding funding commitments from the Export-Import Bank of the United States (US EXIM) subject to obtaining all approvals.

US EXIM will provide debt funding of up to US$600 million (A$923M) for the construction and execution phase of the project.

This follows Export Finance Australia’s previous conditional finance support of A$200 million in debt funding for the Dubbo Project.




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