American Rare Earths has secured firm commitments to raise A$13.5m ($8.85m) through a placement of 45 million new shares priced at A$0.30 each.

Proceeds from the placement will be used to support the company’s Halleck Creek Rare Earths Project in Wyoming, US.

The placement was supported by a mix of new and existing investors, with the placement price set at a 5.1% discount to the ten-day VWAP.

Bell Potter, a financial services company, served as the co-lead manager for the placement.

American Rare Earths CEO Donald Swartz said: “I am thrilled to announce the successful completion of our institutional placement, which has raised A$13.5m.

“The overwhelming support from both existing shareholders and new institutional investors underscores the confidence in our vision and the potential of our projects, in particular the Halleck Creek Rare Earth Project.

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“This placement provides us with the capital to advance our flagship project, Halleck Creek, towards delivering a secure supply of critical minerals to the North American supply chain.”

The funds raised will be allocated to various critical activities at the Halleck Creek project, including mineral resource and extensional drilling, pre-feasibility studies and metallurgical test work.

It will also be used to process development, heritage, permitting, environmental activities, as well as for general working capital needs.

Swartz added: “We are committed to executing on our project development milestones and are grateful for the support that enables us to further our mission.

“With a focus on environmentally friendly and cost-effective extraction methods, we are well set to meet the escalating demand for resources essential to the clean energy transition and US national security.

“This milestone marks a pivotal moment in our journey, and we are excited for the opportunities that lie ahead as we continue to drive value for our shareholders and stakeholders alike.”