Australian Rare Earths (ASX:AR3) extended the closing date of its entitlement offer to April 28 from April 14 to ensure all shareholders understand the implications of China's proposed controls on the exports of heavy rare earth minerals, according to a Wednesday filing with the Australian bourse.

The resource company's pro-rata non-renounceable entitlement offer involves the issue of one new share for every three shares held by eligible shareholders, priced at AU$0.068 apiece to raise up to AU$3.6 million, a separate filing showed.

Participants will also receive one attaching placement option for every two shares subscribed with an exercise price of AU$0.10 per share and an expiry date of March 30, 2029, the filing said.