Astron's capital raising initiative

Astron Corporation (ASX:ATR) has announced a 1 for 12 non-renounceable entitlement offer to raise approximately $10 million at an offer price of $0.66 per CDI. The offer closes on 19 November 2024 and is part of a broader capital initiative, including a recent institutional placement that raised $3 million.

Astron's strategic overview

Astron Corporation is executing a strategy to raise a total of $13 million, including a $3 million institutional placement that was oversubscribed. This funding is intended to advance the Donald Rare Earth and Mineral Sands Project in Victoria, Australia, and support pre-engineering and feasibility studies. The company's strategic initiatives include preparing for commercial production, exploring owned licenses, and potentially redomiciling its parent entity from Hong Kong to Australia. The board and major shareholders are backing the offer, demonstrating strong internal support. The initiative is being conducted under section 708AA of the Corporations Act, with a focus on the Donald Project's long-term potential and aligning with strategic goals through partnerships and off-take agreements.

Executive commentary from Astron

The directors and major shareholders have committed to taking up their full entitlements, covering about 73% of the offer.