Arafura Resources Ltd (ASX:ARU) has revealed a fully underwritten 7 for 20 non-renounceable entitlement offer at 8.5 cents per share to raise $23.2 million.
The funds raised from this transformational equity raising will be used to accelerate development of the Nolans Project as Arafura aims to become Australia’s next fully integrated neodymium-praseodymium (NdPr) producer.
The entitlement offer is fully underwritten by Patersons Securities with Talaxis Limited agreeing to sub-underwrite $7.2 million of the offer.
READ: Arafura Resources’ rare earth project has significant catalysts in the current year: Patersons
Arafura managing director Gavin Lockyer said: “This is a milestone equity raising for the company and we encourage all shareholders to participate.
“We are particularly excited about the potential to team up with Talaxis, a company that possesses certain skills and expertise that will be invaluable in moving Arafura’s 100%- owned Nolans Project into development.
“Nolans continues to stand out as one of the best and most advanced NdPr projects in a tier one jurisdiction at a time when security of NdPr supply is emerging as a major issue around the world.”
Talaxis is a wholly-owned subsidiary of Noble Group Holdings, Asia’s leading independent energy products and industrial raw materials supply chain manager.
It invests and participates in the development of projects in the technology metals sector, with a special focus on rare earths.
Talaxis will seek to play a significant part in bringing the Nolans Project production to various destination markets throughout the world and will also assist with the design and structure of financing solutions.
Neodymium-praseodymium gaining traction
Arafura chairman Mark Southey said: “For Arafura and its shareholders, this equity raising represents a timely and significant underpinning of the Nolans project at a time when NdPr is rightfully gaining attention as one of the critical future strategic materials.
“We also value the opportunity to benefit from Talaxis expertise to support Arafura in this endeavour and as such I would encourage all shareholders to participate.”