Arafura Resources (ASX: ARU) has confirmed that it requires an additional $70 million in 2012 to complete the Bankable Feasibility Study (BFS) at the Nolans Rare Earth Project.
The company has issued a clarification with regard to funding in 2012 following an incorrect media report that stated $250 million would be spent during 2012.
In a Global Investor Update issued on Decmber 6, 2011, Arafura stated that upon completion of the Nolans BFS the company will have spent a total of $250 million on the project since work began in 2000.
The additional $70 million required in 2012 will, together with existing funds, be used to complete the BFS.
Results from Arafura’s 2011 drilling campaign and rare earths production demonstration program at Nolans are expected in the coming weeks.
The Nolans BFS is targeted for completion by the end of 2012, with construction due to begin in 2013/14.
Arafura’s Nolans project, located in the Northern Territory, is considered to be one of the world's largest undeveloped rare earths projects.