The Australian Rare Earths (ASX: AR3) share price was on form again in early trade on Friday.
The rare earths producer's shares were up a further 9% to a record high of 60 cents before pulling back.
When the Australian Rare Earths share price reached that level, it meant it had doubled in value since completing its IPO on Thursday.
The Australian Rare Earths IPO
Australian Rare Earths listed on the Australian share market on Thursday after raising $12 million at $0.30 cents via an oversubscribed IPO. The company notes that well-known institutions and sophisticated investors across Australia and internationally took part in the IPO.
This gave Australian Rare Earths a market capitalisation of $33 million at listing and $66 million at today's peak.
The Koppamurra Project
The funds raised through the IPO will be used to support key work activities at the company's flagship Koppamurra Project, located in South Australia and Victoria.
The Koppamurra Project is Australia's largest prospective ionic clay hosted rare earth element (REE) deposit. Management notes that it has already had significant exploration success at Koppamurra through the discovery of the Red Tail and Yellow Tail deposits. This culminated in the declaration of a maiden JORC 2021 Inferred Mineral Resource of 39.9Mt @ 725ppm TREO.
Positively, the success of its first drilling campaign was obtained from drilling of less than 5% of the granted Project area. Furthermore, the grade is comparable with projects and operations found in southern China, the current major source of heavy rare earths globally.
Non-Executive Chairman, Professor Dudley Kingsnorth, said: "The AR3 team are proud to commence trading on the ASX as we continue to progress our exciting, flagship Koppamurra project."
"Koppamurra is Australia's only prospective ionic clay hosted REE deposit and one of only two exchange listed opportunities globally. The Company is focused on executing our growth strategy to ensure AR3 is in a position to become a strategic, independent and sustainable source of HREEs, which will play a critical role in the transition to green economies globally," he added.
