Arafura Resources Limited (ASX:ARU) has an announcement pending regarding a proposed capital raising that is material to the company and has been granted a trading halt by the ASX
The halt will remain in place until the company releases an announcement in relation or until the start of trading on Tuesday, April 16, 2019, whichever occurs earliest.
Shares last traded at 7.2 cents.
Arafura has signed two non-binding offtake memoranda of understanding (MoUs) for rare earth products from the flagship Nolans Neodymium-Praseodymium (NdPr) Project in the Northern Territory.
The company is focused on customers that are looking to reduce their Chinese NdPr supply risk given China is such a dominant supplier in the global market.
Drilling is set to begin at the company’s Bonya Tungsten Project in the Northern Territory this month with a reverse circulation program of around 2,500 metres scheduled for each of the Samarkand, Jericho, White Violet and Taskent deposits.
Each deposit has outcropping tungsten at surface, ensuring the drilling is into or below previously known mineralisation.