- Arafura Rare Earths (ARU) taps private investors for $121 million to support the development of its Nolans project in the Northern Territory
- The company will issue roughly 326 million new shares in two tranches at 37 cents per share to raise the funds
- Gina Rinehart’s Hancock Prospecting has committed to invest $60 million in Arafura through the placement, giving it a 10 per cent interest in the company
- ARU also plans to launch a share purchase plan (SPP) to raise a further $12 million at the same issue price as the placement, due to open on December 15
- Shares in Arafura are down 10.23 per cent and trading at 39.5 cents at 12:33 pm AEDT
Arafura Rare Earths (ARU) has tapped private investors for $121 million to support the development of its Nolans project in the Northern Territory.
The company will issue roughly 326 million new shares in two tranches at 37 cents per share to raise the funds — a 15.9 per cent discount to its last closing price on December 1.
Hancock Prospecting acted as a cornerstone investor in the placement, committing to invest $60 million, which will result in a post-completion interest of around 10 per cent in Arafura.
The funds raised will be used to accelerate the Nolans project development schedule and will go towards completing an early contractor involvement (ECI) phase, commencing fabrication in readiness for main plant construction and early works construction.
“The widespread interest in this placement reflects the increasing global awareness of the importance of our NdPr oxide product within the supply chains essential to energy transition,” Managing Director Gavin Lockyer said.
“Nolans is important to all countries that are seeking diversified and robust critical material supply chains as they strive to achieve their net-zero emissions target.
“This funding will enable us to accelerate our development activities, allowing commitment to long-lead equipment and commencing on country earthworks in preparation for our planned construction program in 2023.”
The company has also launched a share purchase plan (SPP) to raise a further $12 million at the same issue price as the placement.
The SPP will open on December 15 and close on December 30.
Shares in Arafura were down 10.23 per cent and trading at 39.5 cents at 12:33 pm AEDT.