Arafura Rare Earths calls for $120m
Friday, December 2nd, 2022
Arafura Rare Earths is raising money to support its Nolans project, helping to make the Northern Territory one of the world’s only sources of important critical minerals.
The Nolans project includes a mine, process plant (comprising beneficiation, extraction and separation plants) and related infrastructure located 135km north of Alice Springs.
The Nolan project’s cornerstone asset is the Nolans Bore rare earths-phosphate-uranium-thorium (REE-P-U-Th) deposit, one of the largest and most intensively explored deposits of its kind in the world.
The new offer was for 15.1 per cent discount to the last close and was for 324.3 million new shares at $0.37 each. This was 16.8 per cent lower than the 10-day volume weighted average price.
The placement was split into two tranches, across $95.9 million in the first one that was available under its existing placement capacity and another $24.1 million that was subject to shareholder approval.
Also in the works was a $12 million share purchase plan, which would take Arafura’s total raising to $132 million.
Arafura managing director Gavin Lockyer said the company had worked closely with the key regulatory teams in the NT to ensure the project would meet or exceed all of the technical, social and environmental obligations required for this major resource project.
“This project will be the first of its kind to be built anywhere in Australia and it will be constructed to deliver a product that is absolutely critical in the race to tackle climate change across the world,” he said.
“Because Nolans has very strong ESG (environmental, social and governance) credentials, it will set a benchmark for new Australian resource projects and as a result is attracting a great deal of interest from international investment groups.
“In years to come the development of the project will deliver significant and direct benefits to central Australia and the NT. It will also mean that the Northern Territory is recognised as one of the only sources of these very important critical minerals outside China.”
Joint lead managers Bell Potter and Canaccord Genuity have called for bids by 4.00pm Friday December 2.