ABx Group, a key player in the aluminium and bauxite industry, announced receiving firm commitments for a A$1.5 million single tranche share placement. This significant placement is primarily from professional and sophisticated investors.
With the addition of this placement and the previously secured A$7.5 million from the Federal Government’s Modern Manufacturing Initiative (MMI), the ALCORE pilot plant in NSW has reached its full funding stage. ALCORE is recognized for its pioneering circular economy process, which extracts fluorine from “excess bath,” an aluminium smelter waste product. This waste is then utilized to generate hydrogen fluoride. Furthermore, when this hydrogen fluoride is merged with aluminium hydroxide, the resultant product is aluminium fluoride. This chemical holds great significance, being essential for the aluminium smelting process.
The recent placement agreement dictates that ABx will release 18.75 million fully paid ordinary shares at a rate of A$0.08 each. This showcases a 17.6% discount based on the Company’s 30-day VWAP. An interesting aspect of this placement is that for every two shares that are subscribed, investors are presented with an option. This option holds an exercise price of A$0.12 and will expire on September 6, 2025.
To break down the numbers, 18,750,000 placement shares are set to be issued under the Company’s LR 7.1A capacity. Concurrently, 9,375,000 options will be issued under the Company’s LR 7.1 quota.
The progress made with both ALCORE and the rare earths projects in Tasmania has been commendable. Consequently, the ABx board is currently exploring potential reorganization strategies. The primary aim here is to optimize and unlock further shareholder value.
Mark Cooksey, the ABx Group Managing Director and CEO, expressed his gratitude towards the shareholders. He stated, “This placement underscores the strength and potential of our state-of-the-art ALCORE technology.” He also emphasized that, thanks to the MMI grant combined with this placement, “The ALCORE pilot plant facility is now fully funded. We eagerly anticipate operating this pilot plant in 2024.”
Sequoia Corporate Finance Pty Ltd has been named as the Lead Manager for the Placement by ABx.