This trading halt will remain in place until the beginning of trade on Thursday, June 20, or when an announcement is made to market, whichever occurs earliest.
The securities of Arafura last traded on Monday at 12.5 cents.
Arafura managing director Gavin Lockyer spoke to Proactive Investors earlier this month about US-China trade tensions which have put the spotlight on Australia’s rare earth companies.
Lockyer said Arafura was not sitting back and waiting to see what happened but had an active plan to capitalise on the opportunities being created.
READ: Arafura Resources posts high-grade tungsten and copper results from drilling and XRF analysis at Bon
He added the company was looking for investment from non-Chinese organisations after completing a feasibility study for its Nolans Rare Earths Project this year.
In May Arafura delineated tungsten grades of up to 0.61% as well as high-grade copper in drill samples from the Samarkand prospect at its Bonya Tungsten Project in the Northern Territory.
The drilling comprised 2,184 metres of reverse circulation (RC) drilling on the Samarkand, Jericho, White Violet and Tashkent deposits as well as about 200 metres of trench sampling across each of the Marrakesh and Tashkent deposits.