ABx to raise $1.8 million by way of a convertible note

ABx Group Limited is pleased to announce that it has received binding commitments for placement (the "Placement") of Convertible Notes ("Notes") to be issued by the Company to professional and sophisticated investors, each with a face value of $1.00. The Placement will raise $1.8 million through the issuance of approx—1.8 million Notes in two separate tranches. The raising was heavily supported by the Company's existing shareholders.

Highlights:

• The issue of the Notes will occur over two tranches, with tranche two subject to shareholder approval.
• Directors will participate in the Placement for $230,000.
• Funds raised will be used for the continued development of the Deep Leads Rare Earth Project, ALCORE pilot plant construction, working capital, and Placement costs.
• Subject to obtaining shareholder approval at an EGM to be held in early February 2025, each noteholder will receive 12 free attaching unlisted options ("Options") per Note held. The Options will have an exercise price of $0.08 and an expiry date of 36 months from the date of issue.
• Sequoia Corporate Finance Pty Ltd and GBA Capital Pty Ltd are joint lead managers with respect to the Placement.

Non-Executive Chair, Joycelyn Morton, commented, "We are pleased to have secured firm commitments to raise approximately $1.8 million through the Convertible Note Placement."

"The funds raised will be strategically allocated to advance the continued development of the Deep Leads Project, our 100 per cent-owned rare earth deposit in Northern Tasmania. Additionally, these funds will support the construction of a continuous pilot plant for our 83 per cent-owned fluorine recycling subsidiary, ALCORE."

Image credit: ABx Group website

Note: This press release, issued by  ABx Group, is published as received without edits from AL Circle.