Arafura Resources Ltd (ASX:ARU) has received firm commitments to raise $7 million through a share placement to institutional and professional investors providing a strong endorsement of the Nolans NdPr Project.
The placement, which was completed at an issue price of 6.2 cents per share, received strong support from both domestic and offshore investors.
Funds raised will be used to undertake early engineering works at the Nolans Neodymium-Praseodymium (NdPr) Project in the Northern Territory.
These include pre-front end engineering and design, execution readiness activities as well as for general working capital purposes.
“Strong endorsement”
Managing director Gavin Lockyer said: “The Nolans Project is the only new NdPr Oxide project in Australia with all environmental approvals granted to deliver advanced materials into the critical minerals supply chain.
“The significant interest from new and existing institutional investors is a strong endorsement and the role it is expected to play in diversifying rare earth supply chains whilst seeding new industry in Australia.”
Placement to settle on June 17
Around 112.9 million new shares will be issued using the company’s existing placement capacity under ASX Listing Rule 7.1, which will not require shareholder approval.
The placement is expected to settle on June 17 and will rank equally with the company’s existing quoted shares on issue.
Canaccord Genuity Australia Limited acted as sole lead manager and bookrunner to the placement.