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The Largest Rare Earth Financings of 2023

China, the world’s leading processor of rare earths, recently banned the export of technology to extract and separate rare earth metals, which is another effort by the country to maintain and build its dominance over several strategic metals.

Western countries are trying to launch their own rare earth processing operations, the ban is expected to have the biggest impact on “heavy rare earths,” used in electric vehicle motors, medical devices and weaponry, where China has a de facto monopoly on refining.

While China may have the dominance on the processing of these elements, financing data is showing that Western nations are looking to build their own supply chains on the ground, with the development of new mines. 

In 2023, Costmine Intelligence tracked 23 rare earth mining closed financings that amounted to USD $177,039,378. Here are 10 of the largest. 

#1) Arafura Rare Earths Ltd (ASX: ARU, OTC: ARAFF) –  Funds raised are intended to be used for the completion of an early contractor involvement phase to optimise the Nolans Project and agree a contract for the construction of the hydrometallurgical plant. In addition, the company plans to begin fabrication for main plant construction.

#2) Lindian Resources Ltd. (ASX: LIN) – Funds raised facilitate payment for the 100% acquisition of Rift Valley Resource Developments Limited which owns the globally significant Kangankunde Rare Earth Mining Project in Malawi. The company plans to accelerate efforts to publish a maiden mineral resource estimate. 

#3) Northern Minerals Ltd. (ASX: NTU) (OTC: NOURF) – Proceeds from the financing will be used towards critical minerals development programs, exploration costs, finalising definitive feasibility study costs, early development works, and working capital.

#4) Devex Resources Ltd. (ASX: DEV) – The company plans to “aggressively” pursue exploration activities at its uranium and rare earth properties in Australia’s Northern Territory and Queensland. 

#5) Defense Metals Corp. (TSX-V: DEFN) – The company intends to use the net proceeds to advance the company’s wholly-owned Wicheeda Rare Earth Elements Project including: the completion of the ongoing pre-feasibility study work, and regional exploration activities, and general working capital and corporate expenses.

#6) Commerce Resources Corp. (TSX-V: CCE) – The net proceeds from the sale of the offering will be used for continued work on a new mineral resource estimate, an updated Preliminary Economic Assessment, to seek a listing on the Australian Stock Exchange and for general working capital purposes.

#7) Ucore Rare Metals Inc. (TSX-V: UCU) – The company plans to use the net proceeds of the Offering for completing the commission trials at the company’s RapidSXTM rare earth element commercial demonstration plant in Kingston, Ontario, and working capital purposes.

#8) Altona Rare Earths Plc. (LON: REE) – Funds went towards the completion of Altona’s maiden JORC compliant Mineral Resource Estimate and a scoping study for the company’s flagship asset, the Monte Muambe Rare Earths mining project in northwest Mozambique.

#9) Leading Edge Materials Corp. (TSX-V: LEM) – The company intends to use net proceeds for the company’s projects, located in Sweden and Romania, and for general working capital and corporate purposes.

#10) Krakatoa Resources Ltd. (ASX: KTA) – Funds will go towards costs of the financing, exploration and development of the company’s King Tamba Lithium and Mt. Clere Rare Earth projects, corporate and administrative expenses and working capital.  

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