Harena Rare Earths Raises £2m & Welcomes ‘Wizard of Oz’ Investor Gregory Coffey

Why It Matters

The funding and high‑profile shareholder boost Harena’s ability to advance a strategic rare‑earth asset, addressing growing demand for secure critical‑metal supplies.

Key Takeaways

• £2m raised via subscription, adding 10% shareholder
• Gregory Coffey, known as ‘Wizard of Oz’, joins board
• Ampasindava ionic clay project targets high‑grade REEs
• Base case NPV10 US$250m, IRR 30%
• Offtake term sheet secured, supporting cash flow

Pulse Analysis

Harena Rare Earths’ recent £2 million raise marks a pivotal financing milestone for a niche segment of the critical‑materials market. By welcoming Gregory John Coffey—a seasoned investor dubbed the "Wizard of Oz"—the company not only gains capital but also a strategic ally with deep connections in the mining finance community. Coffey’s 10% stake signals confidence in Harena’s business model and provides a catalyst for further institutional interest, especially given the firm’s unique position as the only London‑stock‑exchange listed ionic‑clay rare‑earth project.

The Ampasindava project in Madagascar sits on a substantial ionic‑clay deposit, a source that can deliver high‑grade rare‑earth oxides with lower processing costs than traditional hard‑rock ores. An offtake term sheet already in place underpins revenue visibility, while management asserts that current inflationary pressures—exacerbated by Middle‑East conflicts—will not erode project economics. In fact, geopolitical instability is amplifying the strategic value of domestically sourced rare‑earths, positioning Ampasindava to benefit from tightening supply chains and rising price forecasts.

From an investment perspective, Harena’s base‑case valuation—US$250 million NPV10 and a 30% internal rate of return—offers an attractive risk‑adjusted profile in a sector where supply security is increasingly premium. The combination of a clear development pathway, secured offtake, and a high‑profile shareholder enhances the company’s credibility and may accelerate its progression toward production. As governments and manufacturers intensify focus on green‑energy technologies, assets like Ampasindava could become essential pillars of the global critical‑metal ecosystem, making Harena a compelling watchlist candidate for forward‑looking investors.

Original Description

Harena Rare Earths (LON:HREE) has raised £2m via a subscription and gained a significant shareholder in the process.

Executive chairman Ivan Murphy explains what the funds and the addition of a 10% shareholder means for the company and its Ampasindava ionic clay rare earth project in Madagascar.

In this interview investors will learn:

- How the money will be invested in the project

- Where Ampasindava is on the development curve

- Why inflationary pressures caused by the war in the Middle East will not pose financial constraints on the asset

- How conflict makes rare earths more desirable

- Who significant shareholder Gregory John Coffey is and why he wants to be involved in Harena

- How the addition of Coffey’s colleague Matthew Press improves Harena’s profile

- What shareholders will learn next about Harena and the Ampasindava project

Reasons to Add (L.HREE) to your watchlist

- Experienced management team

- Large-scale Ionic Clay REE project

- Offtake term sheet secured

- REE prices expected to rise fuelled by security of supply

- Base case post-tax NPV10 US$250m; IRR of 30%

- Attractive valuation as the only LSE-listed ionic clay REE project

Ivan Murphy, Chairman of Harena Rare Earths, was interviewed by Sarah Lowther for focusIR.

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