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Arafura Resources gains new substantial shareholder in Noble Group subsidiary Talaxis

Talaxis invests and participates in the development of projects in the technology metals sector, with a special focus on rare earths.

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Arafura's flagship is the Nolans NdPr Project in the Northern Territory

Arafura Resources Ltd (ASX:ARU) has a new substantial shareholder in specialist rare earths project developer Talaxis Limited, which has a 5.23% stake.

The Hong Kong-based investor has more than 55 million shares gained through sub-underwriting of Arafura's entitlement offer, which raised $23.2 million.

Talaxis is a wholly-owned subsidiary of Noble Group Holdings, Asia’s leading independent energy products and industrial raw materials supply chain manager.

Talaxis a sub-underwriter

Arafura’s entitlement offer was fully underwritten by Patersons Securities with Talaxis Limited agreeing to sub-underwrite $7.2 million of the offer.

Of the equity raising, Arafura’s managing director Gavin Lockyer said: “We are particularly excited about the potential to team up with Talaxis, a company that possesses certain skills and expertise that will be invaluable in moving Arafura’s 100%-owned Nolans project into development.

“Nolans continues to stand out as one of the best and most advanced NdPr projects in a tier one jurisdiction at a time when security of NdPr supply is emerging as a major issue around the world.”

READ: Arafura Resources banks $23.2 million to advance magnet metals project

Talaxis will seek to play a significant part in bringing the Nolans project production to various destination markets throughout the world and will also assist with the design and structure of financing solutions.

Arafura’s chairman Mark Southey said: “For Arafura and its shareholders, this equity raising represents a timely and significant underpinning of the Nolans project at a time when NdPr is rightfully gaining attention as one of the critical future strategic materials.

“We also value the opportunity to benefit from Talaxis expertise to support Arafura in this endeavour.”

Funds for Nolans development

Arafura will use the funds to progress development of the neodymium and praseodymium (NdPr) project.

Planned work includes project execution readiness to allow award of key design and project management contracts, start of front end engineering design (FEED) work, completion of early contractor involvement phase and the delivery and tender of long lead procurement items and early works construction contracts.

READ: Arafura Resources completes underwritten non-renounceable entitlement offer to raise $23.2 million

The capital raising will also fund an exploration and metallurgical program aimed at potentially increasing the project’s mine life.

Nolans remains highly leveraged to neodymium and praseodymium prices with every US$5 per kilogram increase resulting in a $A130 million increase to the project valuation.

Quick facts: Arafura Resources Ltd

Price: 0.092 AUD

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Full interview: Arafura Resources seeks to extend mine life beyond 23 years...

Arafura Resources Limited (ASX:ARU) managing director Gavin Lockyer updates Proactive on the start of new drilling and metallurgical programs to extend the company’s 100%-owned, Nolans Neodymium-Praseodymium (NdPr) Project in the Northern Territory, beyond the 23 years envisaged in its...

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