Watch out Lynas Rare Earths Ltd (ASX: LYC). There could soon be a new rare earths miner on the ASX. And this one's backed by Mineral Resources Limited (ASX: MIN) managing director Chris Ellison.
Rare earths and mineral sands developer VHM Limited is undergoing an ASX initial public offering (IPO).
The company expects to list with a market capitalisation of at least $256 million in January. It's offering shares for $1.35 apiece under its prospectus.
Let's take a closer look at what could soon be an Aussie rare earths favourite.
Image source: Getty Images
ASX rare earths float on the horizon
The new year will likely bring new possibilities for ASX materials fans. Mineral developer VHM Limited is gearing up for an ASX float in early 2023.
The company is developing its flagship Goschen Project in Victoria. It expects to undergo a final investment decision (FID) for the project's first phase in the second half of 2023, with production targeted in 2025.
Goschen has been found to house a "globally significant" 413,107 tonnes of total rare earths oxides.
Ellison holds a 10.3% stake in the future ASX rare earths stock – worth around $19.4 million at its offer price. The Mineral Resources boss could top up that hold under the IPO.
VHM Limited expects to raise $20 million under its prospectus. It has also allowed for up to $10 million of over-subscriptions.
The raised funds will go towards Goschen's FID. The company expects the project will cost $445 million to deliver, assuming $360 million of capital expenditure and $85 million of ancillary costs.
The company was incorporated in 2014. It raised $31.8 million earlier this year as part of a pre-IPO offer.
The ASX rare earths hopeful held $11.1 million of cash at hand as of 1 October and incurred $6.6 million of operating expenses in financial year 2022.
