The Australian Strategic Mtrls (Holdings) Ltd (ASX: ASM) share price won’t be going anywhere on Monday after the company requested a trading halt.
The halt was requested on a pending announcement relating to “a material investment into the Company’s Dubbo Project”.
ASM said its shares will remain halted until Wednesday, 21 July or when the announcement is released to the market.
About the Dubbo project
ASM has a unique “mine to manufacturing” business model, leveraging critical materials from its Dubbo project to supply its metallisation plants.
According to ASM, the company intends to develop the Dubbo project to “supply globally significant quantities of zirconium and rare earth metals, as well as contribute to the niobium and emerging hafnium industries”.
In addition, the company highlighted these materials are “in high demand”, with particular use for clean energy and transportation.
The Dubbo project is on the verge of construction, with the company citing “all major approvals and licences in place”.
Recent Dubbo project updates
On 26 March, ASM received firm commitments to raise $65 million at $4.80 per new share.
According to the equity raising presentation, $18 million would be allocated towards the Dubbo project to accelerate its design work.
In the company’s March quarterly activities report, it said “financing for the Dubbo Project will include a strategic partnership underpinned by offtake agreements, construction and engineering, and ultimately, project financing. It is increasingly likely that that strategic partner will be from Korea”.
ASM share price surges in the last two months
It took a while for the ASM share price to get going, tumbling 34% from $6.46 at the start of the year to a low of $4.08 by 13 May.
But in the last two months, the ASM shares have surged from $4 lows to a record high of $7.91 on 30 June.
This move was broadly in line with the bullish performance of renewable-related shares such as lithium miner Pilbara Minerals Ltd (ASX: PLS), rare earths producer Lynas Rare Earths Ltd (ASX: LYC) and battery technology company Novonix Ltd (ASX: NVX).