The receipt of these funds brings the total cash receipts from the government’s rebate incentive to $35.2 million. Arafura’s current cash reserves stands at $9.8 million.
Last month, the company successfully completed the beneficiation flowsheet piloting for the Nolans neodymium/praseodymium project.
Arafura is expected to report confirmatory data relating to grade and recovery, and iron and aluminium rejection, in the first quarter of 2017 on receipt of validated assays.
The pilot plant’s success, including materials handling and equipment performance data, will be utilised for detailed design and final feasibility.
The company will utilise the tax refund cash towards final feasibility activities in 2017, as it positions itself to become a key supplier into the growing market for neodymium.
Neodymium is a critical component in super strong magnets which are essential for efficient operation of electric motors, a key enabler in the electric and hybrid vehicle industry.