- Arafura Resources (ARU) has received firm commitments to raise $7 million for its Nolans rare earths project in the Northern Territory
- Approximately 112.9 million new shares will be issued to institutional and professional investors in a placement at a price of 6.2 cents each
- The placement is expected to settle on June 17 and shares are expected to be issued on the same day
- The money raised will be used to undertake engineering works at Nolans, and general working capital
- Arafura has dropped 15.4 per cent and shares are currently trading for 6.6 cents each
Arafura Resources (ARU) has received firm commitments to raise $7 million for its Nolans rare earths project in the Northern Territory.
Approximately 112.9 million new shares will be issued institutional and professional investors in a placement at a price of 6.2 cents each.
The placement is expected to settle on June 17, and shares are expected to be issued on the same day.
The money raised will be used to undertake engineering works at Nolans, and for general working capital.
“The Nolans Project is the only new NdPr (neodymium-praseodymium) Oxide project in Australia with all environmental approvals granted to deliver advanced materials into the critical minerals supply chain,” Managing Director Gavin Lockyer commented.
“The significant interest from new and existing institutional investors is a strong endorsement of Arafura’s 100 per cent owned Nolans Project and the role it is expected to play in diversifying rare earth supply chains whilst seeding new industry in Australia,” he added.
The Nolans Project is located 135 kilometres north from Alice Springs and is made up of three exploration licences.
It has a JORC 2012 ore reserve estimate of 29.5 million tonnes, with 2.9 per cent total rare earth oxides, 13 per cent phosphate, and 26.4 per cent NdPr enrichment.
Arafura has dropped 15.4 per cent and shares are trading for 6.6 cents each at 1:15 pm AEST.