Australian Strategic Materials is raising up to $20.2 million through a placement of new shares and an entitlement offer.

The placement aims for $15 million from new shares and options to strategic investors at a 19.4% discount.

The company aims to raise an additional $5.2 million through an entitlement offer to existing shareholders on a 1:40 basis.

The funding will support strategic initiatives in rare earths and critical minerals, notably advancing the Dubbo Project and fortifying the balance sheet.