Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF)has secured firm commitments to raise A$3 million (before costs) via a convertible note issue, subject to shareholder approval. The funds will be used to advance the company’s rare earth projects in the United Kingdom, United States, Brazil and Uganda’s flagship Makuutu project, and for general working capital.
The convertible notes are set to convert into shares at a defined future date or at the discretion of the holder, with accompanying options offered in lieu of interest. Shareholder approval will be sought at an extraordinary general meeting (EGM) scheduled for July 2025.
Convertible notes structure and conversion terms
The notes are convertible into ordinary shares either at the discretion of the holder or automatically on June 15, 2027, if not converted earlier. The conversion price will be the lower of A$0.009 per share or a 20% discount to the 15-day volume weighted average price (VWAP) on the ASX prior to conversion. However, if converted before September 22, 2025, the fixed price of A$0.009 per share applies. These notes are non-redeemable, with full terms detailed in Annexure A.
Options issued in lieu of interest
Rather than issuing interest payments, IonicRE will grant investors a total of 166,666,667 unlisted options. These are exercisable at A$0.011 and expire on December 15, 2027. This structure aligns with the Company’s capital preservation strategy while incentivising investor participation.
IonicRE has the discretion to draw down the funds as a loan before approval is granted, however any interim funds must be repaid with 7% interest, backdated to the date of receipt if approval isn’t given.
Ionic Rare Earths ships first recycled oxides to Brazil in key supply chain milestone
IXR achieved a couple of milestones this week.
A key milestone in its rare earth recycling strategy, came with the first shipment of recycled rare earth oxides dispatched to magnet manufacturing partners in Brazil. The oxides, extracted from end-of-life magnets sourced from wind turbines and MRI machines, were processed at the company’s Belfast demonstration facility via its Viridion joint venture.
Managing director Tim Harrison sat down with Proactive this week to discuss the latest developments.
The recycling technology aligns with Brazil’s A$100 million policy to boost domestic rare earth value addition.
Additionally, Ionic’s Memorandum of Understanding with UK-based EMR aims to secure feedstock and support UK energy security goals.
Harrison confirmed the company is progressing towards commercialisation and finalising a UK grant to scale its recycling operations.