American Rare Earths Limited (ASX:ARR) is the new name for Broken Hill Prospecting Ltd (ASX:BPL) and reflects the company’s focus on its 100%‐owned La Paz Rare Earths Project in Arizona, USA.
The change of name is now complete with the New Zealand Companies Office and Australian Securities and Investments Commission each recording the new name and new ASX listing code will be ARR.
Placement funds
Funds from a recent placement to sophisticated and professional investors, which raised $500,000, will be used to fund the expansion, exploration and economic evaluation of the project.
At the time chairman Creagh O’Connor said: “As BPL announced on March 12, 2020, the transformation of the company to developer with a world-class rare earth project is well underway.
“Rare earth is a key US strategic resource, which through its development is made available to provide its output for US-based processing.
“The potential opportunity to capitalise on growing developments in the REE market is substantial.
“We believe that localising the management and operations of the company in the US is an important step in ensuring the enhancement of value of the project and the company.”
Rights issue
This placement followed a successful rights issue earlier in the year which resulted in the issue of 87.3 million shares raising a total of A$1.3 million.
The US Government’s focus on establishing a domestic rare earth industry is a key driver and powerful incentive for the company to accelerate the growth and development of the La Paz project.
As a key US strategic resource, development of the project will provide output for US-based processing.