Arafura Resources Ltd (ASX:ARU) has closed its share purchase plan (SPP) oversubscribed after receiving over $3 million worth of applications from shareholders.
The company plans to accept the oversubscriptions, which will be used to advance the Nolans Neodymium Praseodymium (NdPr) Project in the Northern Territory.
Arafura’s managing director Gavin Lockyer said: “We are very pleased with the outcome of the SPP and the level of support we received from our shareholders.
“The company is now well funded to advance the DFS for its 100% owned and 100% Australian domiciled Nolans NdPr Project.”
Nolans has a JORC resource of 56 million tonnes at an average grade of 2.6% total rare earth oxides (TREO) that extends 215 metres below surface.
The resource has the potential to support mining and processing operations for at least 30 years, at a design capacity of 14,000 tonnes of TREO equivalent a year.
Arafura’s focus during the year has been to validate the performance of its process flowsheet through completing seven consecutive pilot operations.
In late November 2018, Arafura completed phase 5 in its flow sheet piloting program.
This involved operation of the first of the company’s rare earth processing pilot plants, which ran continuously over a five-day period at facilities in Perth.
This phase of piloting takes NdPr-rich rare earth sulphate material through purification and precipitation processes to produce rare earth hydroxide.