Arafura Resources (ASX:ARU) raises $41.5m for Nolans project -Agbelo News

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  • Arafura Resources (ARU) receives firm commitments to raise $41.5 million through a placement to accelerate the development of its Nolans project in the Northern Territory
  • The funds will be used for front-end engineering and design work, and tendering activities for construction contracts
  • The company will issue about 156.7 million new shares at 26.5 cents each, representing a 17.2 per cent discount to the closing price on August 2
  • For every two new shares subscribed for, one-attaching option will be received, exercisable at 34 cents and expiring in 18 months
  • Shares are trading 10.9 per cent lower at 28.5 cents each at 11:26 am AEST

Arafura Resources (ARU) has received firm commitments to raise $41.5 million through a placement to accelerate the development of its Nolans project in the Northern Territory.

The company will use the funds for front-end engineering and design work, and tendering activities for construction contracts.

In addition, the money will support general working capital, financing activities, and ongoing marketing and sales in the US, Asia, and Europe.

The company will issue about 156.7 million new shares at 26.5 cents each, representing a 17.2 per cent discount to the last closing price on August 2.

For every two new shares subscribed for, one attaching option will be received, exercisable at 34 cents and expiring in 18 months.

Managing Director Gavin Lockyer said the Nolans project is the only neodymium-praseodymium project in Australia that plans to mine and process ore to oxide at a single site.

“It is pleasing that Arafura continues to receive significant interest from new and existing institutional investors, which along with our advanced discussions with a number of major global companies seeking to secure access to neodymium-praseodymium oxide, clearly demonstrates the importance of Nolans to the global supply chain for critical raw materials,” Mr Lockyer said.

Shares were trading 10.9 per cent lower at 28.5 cents each at 11:26 am AEST.

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