Arafura Resources Limited (ASX:ARU) (OTCMKTS:ARAFF) (FRA:REB) has been granted a trading halt by the ASX ahead of a proposed capital raising announcement that is material to the company.
The halt will remain in place until the start of regular trading on Thursday, June 24 or until an announcement is released to the market, whichever occurs earliest.
Shares last traded at 17 cents and the company’s market cap is approximately $199 million.
Support from NAIF welcomed
Arafura has welcomed support from the Northern Australia Infrastructure Facility (NAIF) in relation to a potential senior debt facility as part of the funding package for its Nolans Rare Earth Project.
This support for the project 135 kilometres north of Alice Springs in the Northern Territory has come in the form of a without commitment Letter of Support.
It sets out key terms for a potential senior debt facility:
- Facility amount of up to A$100 million;
- Up to 15-year facility term; and
- Conditions that are required for a financing of such a nature.
“Extremely pleased”
Arafura managing director Gavin Lockyer said: “We are extremely pleased to receive this support from NAIF.
“We look forward to working with NAIF to meet the relevant conditions necessary to advance the process.”