Heavy Rare Earths Limited's capital raising initiative

Heavy Rare Earths (ASX:HRE) is launching a fully underwritten non-renounceable entitlement offer to raise approximately $1.26 million. Eligible shareholders can subscribe for new shares at $0.03 each, with the offer fully underwritten by Cygnet Capital and Taylor Collison.

Overview and future outlook of Heavy Rare Earths' entitlement offer

Heavy Rare Earths (ASX:HRE) is undertaking a non-renounceable entitlement offer to raise $1.26 million. The offer allows eligible shareholders to acquire 1 new share for every 2 held, at $0.03 per share. The raised funds will support the acquisition of uranium rights in South Australia and fund associated exploration activities. The offer opens on December 5, 2024, and closes on December 16, 2024, with new shares expected to start trading on December 17, 2024. The initiative is part of a broader capital strategy, which includes a separate placement to raise an additional $1.2 million. Shareholders and potential investors are advised to carefully consider the speculative nature of the investment and associated risks.

Executive insights on the entitlement offer

The proceeds will fund exploration and development activities at certain uranium projects and cover the costs of the entitlement offer.