Ionic Rare Earths Secures $3 Million Through Convertible Notes Capital Raise

Highlights

• Ionic Rare Earths Limited (ASX: IXR) secures firm commitments to raise $3.0 million through convertible notes, subject to shareholder approval.
• Funds will support working capital needs and development activities across the UK, USA, Brazil, and the Makuutu project.
• Convertible notes convert at $0.009 per share or a 20% discount to VWAP, with options issued in lieu of interest and a final maturity date of June 15, 2027.

Key Funding Initiative to Drive Global Project Development

Ionic Rare Earths Limited (ASX: IXR), a critical minerals exploration and development company, has successfully secured firm commitments to raise $3.0 million before costs via the issuance of convertible notes, subject to shareholder approval. This capital raising initiative is a strategic move to fund working capital requirements and accelerate progress across its priority projects in the UK, USA, Brazil, and Uganda’s Makuutu Rare Earths Project.

Convertible Notes Structure and Terms

The fundraising will be conducted through the issue of unsecured, unlisted convertible notes to sophisticated and professional investors. These notes will convert into ordinary shares either upon the investor's decision or automatically on 15 June 2027. The conversion price is set at the lower of 0.9 cents per share or a 20% discount to the 15-day volume-weighted average price (VWAP) prior to conversion. For conversions before 22 September 2025, a fixed price of 0.9 cents per share will apply.

In lieu of interest, investors will receive 166.7 million options, exercisable at 1.1 cents each, expiring on 15 December 2027. These terms, as outlined in the company’s annexures, provide investors with attractive upside potential while aligning with IonicRE’s long-term growth vision.

Conditional on Shareholder Approval

The capital raise remains contingent upon approval at an Extraordinary General Meeting scheduled for July 2025. In the interim, IonicRE can opt to access the funds as a loan, repayable with 7% interest if shareholder consent is not granted. Ignite Equity Pty Ltd is acting as the lead manager for the offering and will be issued 15 million options, alongside a 6% fee (plus GST) on funds raised. At the time of writing, Ionic Rare Earths Limited is actively positioning itself as a major player in the global supply of sustainable magnet and heavy rare earths, critical to the green energy transition.

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