The funds will fast-track the development of high-grade rare earth projects in Brazil.
These proceeds will accelerate progress on high-grade rare earth initiatives in Brazil and support the establishment of an integrated separation refinery in Camaçari, Bahia.
The company noted that the pricing offers a 6.4% reduction from the latest closing value of A$5, while aligning exactly with the five-day volume-weighted average price. BRE stated: “The issue price reflects a discount of 6.4% compared to the most recent closing price of $5 and nil discount to the five-day volume weighted average price.”
The fresh shares will carry equivalent rights and privileges to those already in circulation.
Petra Capital and Canaccord Genuity acted as joint lead managers for the placement, with Petra Capital also serving as the sole bookrunner.
This financing initiative builds on recent advancements in BRE's operational framework. Earlier this month, the company established strategic partnerships with Carester, an expert in rare earth processing.
Under these arrangements, BRE will supply heavy rare earth feedstocks, while Carester provides engineering and technical expertise for the planned integrated rare earth separation refinery located at the Camaçari Petrochemical Complex in Bahia.
BRE emphasized that these collaborations establish a solid base for elevating Brazil's role as a leading center for rare earth processing and output.
The partnerships target the production of valuable materials, including neodymium and praseodymium oxide, heavy rare earth concentrate, separated dysprosium and terbium oxides, and uranium.
Complementing these efforts, BRE has concluded a binding 10-year offtake agreement with Carester for heavy rare earth elements. This arrangement is set to facilitate the efficient separation of dysprosium and terbium oxides at Carester's Caremag facility in France, enhancing the value chain for these critical resources.
The long-term supply commitment ensures stable market access and supports BRE's focus on sustainable resource development.
Looking back, BRE raised A$80 million last year to support exploration and advancement at its primary sites, laying groundwork for current expansions.
This latest capital influx positions BRE to advance its refinery project more rapidly, integrating upstream mining with downstream processing capabilities. The Camaçari facility, situated in Bahia's established petrochemical hub, benefits from existing infrastructure and logistical advantages, optimizing efficiency in rare earth refinement.
By prioritizing high-grade deposits, BRE aims to contribute to global supply chains for essential minerals used in technologies such as electric vehicles, wind turbines, and electronics. The strategic ties with Carester not only provide technical know-how but also open avenues for international collaboration, fostering innovation in mineral separation techniques.
Overall, these developments highlight BRE's proactive approach to building a robust rare earth ecosystem in Brazil. With secured funding and reliable partnerships, the company is well-equipped to meet rising demand for these strategic materials, promoting economic growth through responsible resource utilization.
