Brazilian Rare Earths, supported by Gina Rinehart, has successfully raised $120 million through the sale of new shares. The funds are earmarked for the development of a project focused on key materials vital for electric vehicles and defence equipment. Brazilian Rare Earths is involved in the exploration and development of rare earth element deposits, which are crucial for various high-tech applications. The company aims to become a significant player in the global rare earths market.
Shares in Brazilian Rare Earths experienced a surge, climbing as much as 12 per cent on Tuesday. Prior to entering a trading halt on Monday, the company boasted a market value of approximately $1.24 billion. Hancock Prospecting, Rinehart’s privately-held company, holds a 5 per cent stake in Brazilian Rare Earths, demonstrating strong confidence in the company’s prospects.
Rinehart’s involvement extends beyond Brazilian Rare Earths, as she also holds interests in US government-backed MP Materials and Australia’s Lynas Rare Earths. Additionally, she has stakes in several smaller developers within the rare earths sector. This diversified portfolio underscores her commitment to the rare earths industry and its growing importance in the global economy.
As of 1.34pm, Brazilian Rare Earths shares were trading 7.2 per cent higher at $5.36, reflecting positive investor sentiment following the capital raising announcement. The company is strategically positioned to capitalise on the increasing demand for rare earth elements driven by the expanding electric vehicle and defence industries.
