Arafura Resources

Arafura Resources (ASX:ARU) is an emerging rare earths producer that listed on the Australian Securities Exchange in 2003.

Arafura is currently developing its Nolans rare earths-phosphate-uranium project in Australia’s Northern Territory. The project is underpinned by a 30 million tonne resource that can sustain a 20-year mine life. Arafura has developed a processing flow sheet, demonstrated the recovery of rare earths, phosphoric acid and uranium at a pre-production scale pilot plant, and is making rapid progress in completing a bankable feasibility study. The Company is on track for first production from Nolans in 2013.

Arafura has an exploration and development program aimed at enhancing its position in the rare earths market.

Arafura Resources’ shareholders approve $23m investment by China

Friday, September 18, 2009

Rare earths developer Arafura Resources (ASX: ARU) will progress the bankable feasibility study for its Nolan Rare Earths project in the Northern Territory, after receiving shareholder approval for a $23 million placement to its Chinese partner.

In June, Arafura issued the first tranche placement of 28.3 million shares to ECE, for $8.5 million, at 30 cents per share.

Shareholders at yesterday’s extraordinary general meeting unanimously voted in support of the Chinese group placement, East China Mineral Exploration & Development Bureau’s (ECE) will increase its investment in Arafura to 25%.

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At yesterday’s EGM, Arafura shareholders voted to place a second allotment of 36.1 million shares to ECE at 40 cents per share, for a cost to ECE of $14.44 million.

The Arafura share price has been on roll to $1.20 in recent times, as investors liked the company’s future prospects, with tightening in global supply of rare earths.

Foreign Investment Review Board (FIRB) and other approvals for the transaction were granted in May 2009.

Arafura Chairman Mr Ian Laurance said shareholder endorsement of Arafura’s alliance with ECE, a major Chinese metals and mining company, will strengthen the company’s cash position and opened the way for future joint venture opportunities with Arafura in respect to its existing assets and other potential projects.

In another development, Arafura Managing Director and Chief Executive Officer Mr Alistair Stephens will resign his position for family reasons.

Stephens, who will step down as Managing Director immediately, will remain in the role of Arafura CEO until a suitable replacement is appointed. The Board will undertake a search for a new CEO and intends to make an appointment before the end of 2009.

The company’s market capitalization has grown from $4 million in 2004 when Alistair Stephens assumed the role of CEO to over $300 million today.

He has been instrumental in Arafura’s efforts to define the large resource of Arafura’s flagship Nolans Rare Earths Project and in identifying and securing ECE’s support as a cornerstone partner in the company going forward, Ian Laurance said.

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Additional Information

Market:	ASX
Sector:	General Mining - Rare Earth Minerals
EPIC:	ARU
Latest Price:	A$0.75 (0.00%)
52-week High:	A$0.00
52-week Low:	A$0.00
Market Cap:	A$219.43M

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