Broken Hill Prospecting Ltd. said Dec. 9 that it will seek to raise an additional A$2.5 million through a renounceable offer to shareholders as it will focus its efforts primarily on its La Paz rare earths project in Arizona.
Proceeds of the fundraising will go toward upgrading the La Paz resources to meet JORC 2012 standards, conducting detailed metallurgical test work programs, completing a scoping study and funding working capital.
In line with its strategy, Broken Hill intends to put in place a separate U.S.-focused management team to ensure the success of its Arizona rare earths project, on top of an ongoing board renewal to increase its knowledge of the U.S. It is also considering a name change to American Rare Earths Ltd.
The prior sale of its stake in the Thackaringa joint venture in Western Australia let the company set a baseline for its corporate expenditure, which allowed future capital raisings to be solely focused on the La Paz project.
Broken Hill will maintain its Australia portfolio in Broken Hill and the Murray Basin. The explorer is seeking partners to help develop its tenement portfolio in the Murray Basin, together with potential off-takers of heavy mineral sands produced at the tenements.
In August, Broken Hill acquired, by staking, the La Paz rare earths project, which initially comprised 107 unpatented lode mining claims covering over 890 hectares and a prospecting permit covering 259 hectares. The explorer doubled the footprint of La Paz after applying for an additional 660 hectares adjacent to the existing tenements in October.