Harena Resources (HREE) has completed its previously announced bookbuild and raised gross proceeds of approximately £1.05 million at 1.5p.
The company also intends to raise up to £150,000 through a direct subscription with certain institutional and professional investors.
In conjunction with the fundraise, Ivan Murphy and Paul Richards have been appointed as non-executive chairman and non-executive director respectively.
Murphy has over 25 years' experience in sourcing, structuring, and raising public and private equity for various companies in the natural resources sector. He has held a number of key roles including acting as Director at GazpromBank Invest MENA, partner at Fairfax Investment Bank, managing director of Aberdeen Asset Management (Ireland) Limited, and executive chairman of Tantalus Rare Earths AG. the previous owner of the Ampasindava project. He was also a founder director of Cove Energy, which was acquired for US$1.5 billion.
Richards is a qualified solicitor and experienced investment banker with over 35 years of experience, having worked on many IPOs and private fundraisings across various sectors including natural resources. He was an executive director of Tantalus Rare Earths AG and has a detailed knowledge of Ampasindava.
Cameron Pearce and Sam Quinn have stepped down from the board as non-executive directors.
Following the appointment of Allenby Capital as financial adviser and joint broker, Allenby Capital will today publish its initiation research note on Harena.
"Demand for rare earth elements has never been stronger given the race for energy and mineral security,” said Allan Mulligan, executive technical director of Harena.
“Harena has an extraordinary opportunity to help meet this demand, against the backdrop of an increasingly favourable price environment. Completion of the placing as well as the appointments of Ivan and Paul to the board will position the company well to further accelerate the development of the company's Ampasindava ionic clay rare earth project in Madagascar. The Ampasindava project is the only pure ionic clay magnet metal rare earth elements project on the London Stock Exchange, with over 600,000 tonnes of rare earth oxides in-situ.”
Ivan Murphy, non-Executive chairman of Harena, said: "I am delighted to get another opportunity to work on the Ampasindava project. Harena is a free dig, rapid remediation, magnet metals, ionic clay heavy rare earth project. Our multibillion-dollar proven resource can become a global supply solution within a relatively short time horizon. Paul Richards and I bring a detailed understanding of the Ampasindava project through our long history with it, and we look forward to adding to Allan's technical expertise to create significant value for all stakeholders."
View from Vox
Ampasindava continues to look very well positioned in a global context, free from Chinese influence and able to supply rare earths at scale into Western markets. News on the bankable study is due shortly, after which the company will begin to put together its project finance package. There is much to anticipate.