Arafura Resources Limited (ASX:ARU) has been granted a trading halt by the ASX, with an announcement pending in relation to a capital raising.
The halt will remain in place until the started of normal trading on Thursday, June 11, 2020, or when an announcement is released to the market.
Shares were last trading at 7.7 cents at the market close on Friday, June 5.
Nolan’s Project funding
The company is focused on advancing offtake agreements and financing for its Nolans Neodymium-Praseodymium (NdPr) Project in the Northern Territory.
Arafura is looking to secure US$726 million to meet CAPEX requirements for the Nolans Project with potential sources of funding including equity, debt, JV and/or project selldown with a strategic investor.
The project has already been identified as a key critical minerals project for potential financing support through the EFA and NAIF.
The company has four key focus areas for the remainder of the year, including:
- Prioritising project workstreams against cash conservation priorities in light of COVID-19 and uncertain recovery of capital markets;
- Provision of sample product & advancing terms sheets with end-users for offtake;
- Escalate engagement with financiers and financial advisors for project financing; and
- Continued dialogue with Australian and other governments seeking to establish non-Chinese critical minerals supply chains.