Proactive Investors - Run By Investors For Investors

Arafura Resources raises $3 million in placement for Nolans Nd-Pr Project

The company has signed two non-binding offtake MoUs for rare earth products from the flagship NdPr project in the Northern Territory.
Arafura Resources raises $3 million in placement for Nolans Nd-Pr Project
About 80% of Nolans revenue is derived from NdPr oxide

Arafura Resources Limited (ASX:ARU) has completed a $3 million share placement to Australian and global institutions as well as sophisticated investors at an issue price of 5 cents per share and will issue 60 million new fully paid ordinary shares.

Funds from the placement will be used to advance the Nolans Neodymium-Praseodymium (NdPr) Project in the Northern Territory and for general working capital.

"Working towards project commitment"

Arafura managing director Gavin Lockyer said: “Having recently confirmed the technical and economic viability of the Nolans project through the definitive feasibility study, together with the earlier obtained Territory and Commonwealth approvals, the company is now working towards project commitment.

“Several key work streams are now in fully swing, which include the continued negotiation of the mining agreement with the Native Title holders, the final regulatory condition prior to the granting of the initial 25-year term mineral leases by the Northern Territory government and interrelated programs to secure offtake for final products and fund project capital requirements.

“In the second half of this year, we plan to commence execution readiness including the tendering of the engineering and construction contracts for the project.

“These project development activities are critical as they will enable the company to efficiently transition to final engineering design and construction once project funding has been secured.”

Patersons Securities Limited acted as lead manager and bookrunner to the placement.

READ: Arafura Resources updates on rare earth offtake agreements

The company is also making solid progress in marketing its other rare earth products and its phosphoric acid product to fertiliser companies in India.

The table below summarises Arafura’s product offtake strategy and the status of its negotiations.

View full ARU profile View Profile

Arafura Resources Ltd Timeline

Related Articles

Drilling is underway at Apollo Hill project
February 19 2019
Apollo Hill Gold Project in the Eastern Goldfields is the key focus.
Lithium on table of elements
April 05 2019
The McDermitt Lithium Project features a high-grade ETR of 20-80 million tonnes at 2100-2600 ppm.
Ovoot Early Development Project in Mongolia
March 06 2019
Gina Rinehart’s Hancock Prospecting has gone all in with a bid for another company targeting similar annual production levels.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use