Ark Mines Ltd (ASX:AHK) announced it has successfully secured commitments to raise $1,500,000 through a placement to professional and sophisticated investors. The placement, priced at $0.14 per share, involves the issuance of 10,714,285 new fully paid ordinary shares. These shares will be issued under the company’s existing ASX listing rule 7.1 capacity (5,544,644 shares) and 7.1A capacity (5,169,641 shares), negating the need for shareholder approval. Settlement and allotment are scheduled for May 5, 2025.
The placement was fully subscribed by new shareholders, indicating strong investor confidence in Ark Mines’ strategic direction. Funds raised will be directed towards expediting the exploration and development program at the Sandy Mitchell Rare Earths project. Ark Mines Managing Director, Mr. Ben Emery, expressed enthusiasm for the capital injection, emphasizing the company’s belief in the marketability of their North Queensland Rare Earth placer sand deposit package.
This funding positions Ark Mines favorably to advance the Sandy Mitchell project, potentially unlocking value from its rare earth assets. The company’s Gunnawarra Nickel-Cobalt and Mt Jesse Iron-Copper projects will also benefit from the improved financial position. The successful placement reflects investor appetite for rare earth opportunities, driven by increasing demand for these critical minerals in various technology and renewable energy applications. Ark Mines is actively promoting their project on social media platforms such as Twitter and LinkedIn to increase awareness.