What's Happening?
RAB Capital, a long-standing institutional investor, has announced an investment of £450,000 into Harena Resources. This investment will increase RAB's shareholding in Harena from 4.17% to approximately 9.02%. The funds will be used to advance the Ampasindava ionic clay rare earth project in Madagascar. The issuance of new shares is contingent upon the renewal of the directors' authority at the upcoming AGM and compliance with prospectus rules. The shares are expected to be listed on the LSE following the new prospectus rules, anticipated to take effect in January 2026.
Why It's Important?
This investment signifies a strong endorsement of Harena's strategy and its rare earth project, which is of global strategic importance. The Ampasindava project is particularly noteworthy due to its deposits of heavy rare earths, crucial for the production of neodymium magnets used in the expanding robotics sector. The increased financial backing from RAB Capital provides Harena with the necessary resources to continue developing this project, potentially attracting interest from countries like the U.S. seeking alternative sources of critical metals outside of China.
What's Next?
Harena plans to use the investment to further its project development, with the issuance of shares pending regulatory approvals. The company aims to update shareholders on project developments as they progress. The strategic importance of the project may lead to increased interest from international stakeholders looking to secure rare earth supplies.
