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- Ionic Rare Earths (IXR) has begun the week in a trading halt ahead of a capital raising
- The rare earth explorer will remain in the halt until February 17 or when an announcement is made, whichever occurs first
- Earlier in the month, Ionic received assay results from the Makuutu Rare Earths Project in Uganda
- These results were part of a drilling program undertaken in October 2020 that consisted was designed to infill the current mineral resource estimate area
- Grades peaked at 1583 parts per million total rare earth oxide and Ionic is now in the process of updating the mineral resource
- Shares in Ionic last traded at 4.5 cents on February 12
Ionic Rare Earths (IXR) has begun the week in a trading halt ahead of a capital raising.
The rare earth explorer will remain in the halt until February 17 or when an announcement is made, whichever occurs first.
Ionic is yet to disclose how much it intends to raise or what it will use the funds for once received.
Earlier in the month, the company received assay results from the Makuutu Rare Earths Project in Uganda.
These results were part of a drilling program undertaken in October 2020 that consisted of 222 holes designed to infill the current mineral resource estimate (MRE) area.
Best results included 12.2 metres at 1583 parts per million (ppm) total rare earth oxide (TREO) from 3.3 metres, 5.8 metres at 1513 ppm TREO from 3.9 metres, and 5.1 metres at 1334 ppm TREO from 5.4 metres.
Ionic has now begun the mineral resource estimation process which will update the current MRE of 78.6 million tonnes at 840 ppm TREO.
The company last entered a trading halt in June in regards to a $3 million capital raise and CEO appointment.
The $3 million was raised through a $2.5 million placement and a $500,000 share purchase plan.
Under the placement, more than 312 million shares were issued to professional and sophisticated investors at 0.8 cents, representing a 15.7 per cent discount to the five-day volume-weighted average price.
With the share purchase plan, eligible shareholders were able to subscribe for up to $30,000 worth of shares, also priced at 0.8 cents.
Ionic used the funds to undertake drilling programs at Makuutu.
Furthermore, Tim Harrison was appointed CEO, stepping away from his previous role of Project Manager for Makuutu.
Shares in Ionic last traded at 4.5 cents on February 12.
