Resource Base Limited Announces $975,000 Capital Raising to Fund Lithium and REE Projects
Resource Base Limited (ASX: RBX) has announced a successful capital raise of $975,000 through a two-tranche share placement to new and existing institutional and sophisticated investors. This placement will be used to further develop the company’s lithium exploration projects in James Bay and its clay-hosted REE (Rare Earth Element) project in Victoria, as well as support working capital and assess new complementary project opportunities.
The placement price of $0.03 per share represents a 14.3% discount on the company’s last traded price of $0.035 on 15 October 2024 and a 2.1% discount to the 15-day volume-weighted average price (VWAP). This significant placement marks a crucial step in Resource Base’s strategy to expand its asset base and drive value for shareholders.
Strong Investor Backing for Lithium and REE Project Development
Resource Base’s capital raise was met with strong demand from new and existing institutional and sophisticated shareholders, along with participation from Australian high net worth and family office investors. The placement was split into two tranches:
- Tranche 1: 20,600,000 new shares issued to raise $618,000, with shares allocated to professional and sophisticated investors under Listing Rule 7.1.
- Tranche 2: 11,900,000 new shares to raise an additional $357,000, subject to shareholder approval at the company’s upcoming AGM. Directors Mr. Palmer and Mr. Feilich will participate in this tranche.
Settlement for Tranche 1 is expected by 24 October 2024, while Tranche 2 will be contingent on shareholder approval, with final settlement expected on or before 29 November 2024.
Capital Raise to Support Lithium and REE Projects
The proceeds from this capital raise will play a pivotal role in advancing Resource Base’s lithium projects within the highly prospective James Bay region, an area that has attracted attention due to significant discoveries by major industry players. Additionally, the funds will support the ongoing development of the Mitre Hill clay-hosted REE project in Victoria, which boasts a JORC Inferred Mineral Resource estimate of 21 Mt @ 767 ppm TREO (Total Rare Earth Oxides).
Resource Base’s strategic projects are well-positioned within key growth sectors, and this capital raise enables the company to continue exploring high-potential assets while also identifying new opportunities for expansion.
Lead Manager and Placement Details
Taylor Collison acted as the Lead Manager for the placement, securing bids from a strong pool of investors. The firm will receive a cash fee of 6% of the funds raised, along with 2,000,000 options with an exercise price of $0.10, expiring in three years.
The placement underscores the market’s confidence in Resource Base’s growth potential, as the company continues to position itself as a key player in the lithium and rare earth elements sectors.
Outlook and Future Plans
Resource Base remains committed to delivering shareholder value through the strategic development of its lithium and REE projects. The upcoming AGM and further exploration activities are expected to provide additional insights into the company’s growth trajectory. The capital raised will be integral to achieving these objectives, ensuring continued progress in exploration and project development.
With this capital injection, Resource Base is well-positioned to advance its projects and explore new opportunities within the burgeoning lithium and rare earth elements sectors.
For more information, please visit the company's official website.
