Arafura Resources (ASX:ARU) is progressing to the next phase of piloting at its Nolans Neodymium-Praseodymium Project in the Northern Territory.
The company has engaged phosphoric acid expert Prayon Technologies to provide specialist support for operating a phosphate extraction pilot plant.
Arafura is aiming to extract phosphate from the concentrate produced from the beneficiation pilot plant and produce phosphoric acid as a value-enhancing by-product.
Importantly, the ability to produce phosphoric acid as a by-product at Nolans provides Arafura with a natural advantage over other rare earth projects as it will reduce overall operating costs.
The appointment of Prayon for the phosphate extraction pilot plant follows the completion of a $3.6 million capital raising in February which was well supported by investors.
The recent interest shown in the Nolans project by institutional investors has given the company confidence to commence the next phase of the final feasibility study.
Arafura will require significant capital spend for the next five phases of piloting.
The funds raised via the placement, together with the anticipated inflow from the current share purchase plan, will enable the company to meet this requirement.
Arafura is raising up to $2.5 million from the share purchase plan, which closes on 20 March 2017.
The company’s share price has increased by circa 37% since the start of 2017, last trading at $0.078.