ABx Group Secures Backing to Drive Rare Earths Ambitions

ABx Group has raised three million dollars in a placement that was strongly supported by institutions, high net worth investors and its own board, positioning the company to advance its Deep Leads rare earths project in Tasmania.

The placement will issue nearly 47 million new shares at 6.4 cents apiece, a 16.9 percent discount to the last traded price. Participants will also receive a free attaching option exercisable at ten cents within two years, which if fully exercised would inject an additional 4.7 million dollars into company coffers. The funds will be deployed into scoping studies, expanded drilling and securing offtake agreements, as well as general working capital.

ABx has already dispatched a 100 kilogram bulk sample of ionic clay rare earth material from Deep Leads to ANSTO, with test work showing strong recoveries of dysprosium and terbium. These two heavy rare earth elements are among the most valuable in the sector, given their essential role in high performance magnets used in electric vehicles, wind turbines and defence applications. ANSTO is now producing a mixed rare earth carbonate sample, expected before the end of the year, which will be sent to potential customers.

Managing director Mark Cooksey said the placement reflected strong confidence in the company’s progress. “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. We appreciate the confidence of our placement participants, our directors and our shareholders as we advance towards strategic project partnerships and near term production,” he said.

The raise follows a series of encouraging announcements from ABx in recent months, including confirmation of high extraction rates from Deep Leads material and the rapid advancement of technical studies. The project is emerging as a potential supplier of rare earths into Western supply chains at a time when security of supply has become a strategic priority.

Beyond rare earths, ABx continues to develop its ALCORE project to produce fluorine chemicals from aluminium smelter waste, and retains near term bauxite production capability. The placement therefore not only funds exploration and test work but also gives the company more financial flexibility across its broader clean energy materials portfolio.

The Deep Leads project sits at the heart of ABx’s growth story, offering the chance to bring a new source of heavy rare earths into the market from a Tier 1 jurisdiction. With cash now in the bank and samples heading to potential customers, ABx is positioning itself to turn exploration momentum into commercial traction.