Australian company RareX Limited has secured over Ksh168 million (A$2 million) from global investors. Some of the funds are earmarked for advancing a rare earth and niobium project at Mrima Hill in Kenya.
In a public disclosure to the Australian Securities Exchange (ASX), the mining company confirmed that it received firm commitments from institutional and professional investors to support its mineral exploration ventures across Australia and Kenya.
Further, the company noted that the capital raise will be executed through the issuance of approximately 90.9 million new fully paid ordinary shares at A$0.022 (about Ksh2.04) per share.
The funds were raised through a placement of approximately 90.9 million fully paid ordinary shares at AUD 0.022 per share.
“The Placement saw strong support from existing shareholders and new investors, with demand significantly exceeding shares available under the offer,” the company announced.
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How the Shares will be Issued
RareX confirmed that 80 million of the new shares will be issued under the company’s existing placement capacity (Tranche 1).
However, the remaining 10.9 million shares (Tranche 2) are subject to shareholder approval in a general meeting scheduled for late August 2025.
Investors will also receive free-attaching options exercisable at AUD 0.035 per share, expiring 36 months from the date of issue.
RareX CEO and Managing Director James Durrant highlighted the strategic importance of the funds, explaining that the placement would reduce pressure to raise capital in future rounds.
“This was a demand driven and highly effective capital raise at VWAP premiums at an opportune time,” Durrant stated.
He added that the funds would support key mineral exploration projects, including heavy rare earths at Mt Mansbridge, phosphate carbonate prospects at Cummins Range, and an ongoing licensing strategy for gallium and scandium.
For Kenya, Durrant emphasized the company’s commitment to advancing its interest in the country.
“The funds will help prosecute the initiative in consortium with Iluka Resources to procure the Mrima Hill rare earth and niobium project in Kenya,” he said.
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About the RareX Limited Project in Kenya
Mrima Hill, located in Kwale County, is considered one of the most undeveloped rare earth and niobium deposits in Africa.
Rare earth elements and niobium are important to the manufacture of green technologies such as electric vehicle batteries, wind turbines, and high-performance electronics.
The Australian firm is expected to use the proceeds to continue exploration and potentially expand its footprint in Kenya’s mineral sector.
In an earlier statement released on April 22, 2025, RareX revealed that it had teamed up with Iluka Resources to develop the Mrima Hill rare earth, niobium, phosphate, and manganese project.
The two companies formed a consortium to apply for rights to Mrima Hill through a proposed joint venture with Kenya’s National Mining Corporation (NAMICO).
If successful, the venture will enable the creation of a special purpose vehicle (SPV), with RareX leading the charge on technical exploration, environmental protection, and community engagement.
The project site is 15 kilometers from the Indian Ocean and less than 100 kilometers from Mombasa and is considered one of the most untapped rare earth deposits globally.
Also, it is strategically located near key infrastructure, including highways and geothermal energy grids, making it highly viable for long-term development.
RareX has committed to covering all consortium costs up to the point a Mining Licence is granted. This includes the current fundraising, which will directly support feasibility studies, local engagement, and licensing processes.
If the proposal is accepted, Iluka will be granted a 25% stake in the SPV, with RareX retaining at least a 20% economic interest during the prospecting phase.
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