Market Update: Arafura Rare Earths storms ahead on Government financing news

The ASX200 has been losing steam so far this session, to be down around 0.1 per cent.

The sectors are split, with the Materials performing strongly, adding well over 2 per cent, while Financials has dropped nearly 1.9 per cent as the big banks fall on Macquarie-issued share price downgrades overnight.

Arafura Rare Earths (ASX:ARU) has surged 54 per cent on conditional approval from the Commonwealth Government for a US$533 million debt finance package to support the Nolans project in the Northern Territory. 

The approval is a massive vote of confidence for the project, which has already built a camp and completed other early works. It’s focussed on offtake agreements with South Korean companies including Hyundai and Kia.

ARU has been trading around 23 cents.

Infinity Lithium Corporation (ASX:INF) is up more than 2.5 per cent after expanding its land holdings at its San Jose project in Spain.

The company has secured a 35-year lease of an additional 11 hectares for the development of lithium chemical conversion plant infrastructure and surface tailings.

INF has been trading at 7.7 cents.

Internet service provider, Superloop Ltd (ASX: SLC) has surged 22.5 per cent after securing a six-year contract to provide wholesale internet services to Origin Energy (ASX:ORG) and its subsidiaries.

This contract will see the migration of Origin’s 130,000 broadband customer accounts onto Superloop’s network next financial year.

The deal’s expected to boost annual EBITDA by over $19 million.

SLC has been trading at $1.28.

DroneShield (ASX:DRO) has received a repeat order of $4.3 million from a US Government client for its handheld counter drone systems.

While DroneShield has been working with the customer for several years, this is the first substantial order received.

Delivery of the systems is set to be completed within 15 days.

DRO has been trading flat at 69 cents.

And inflammatory disease biotech Mesoblast (ASX:MSB) is trading flat after raising $97 million through a Placement and Entitlement offer, with $36.7 million of that supported by existing major shareholders, including Dr Eric Rose, the company’s Chief Medical Officer.

Dr Rose, a renowned heart surgeon, has subscribed for another $1.5 million in shares – an offer awaiting shareholder approval.

Mesoblast’s been trading around 37.5 cents.