Arafura Resources Ltd (ASX:ARU) has seen a high level of shareholder interest and participation in its share purchase plan (SPP) announced on June 24, encouraging the company to close the offer early on August 13.
The board has decided to accept the maximum amount under the SPP of $5.5 million and close it early to minimise the impact of any potential scale-back of applications.
SPP date change
Instead of closing on August 23, the SPP will now close at 5.00pm Sydney time on August 13 and any application monies received after that time will not be accepted and will be returned.
This move follows shareholders approving to raise a total of $5.5 million (before costs) under the SPP, comprising up to $500,000 in oversubscriptions at ARU’s recent general meeting on August 9.
Funds to advance Nolans Project
The company completed its tranche-1 of a $40 million placement after raising A$21,074,054 before costs to institutional and sophisticated investors on July 2.
Tranche-2 is subject to shareholder approval.
The company issued 175,617,114 new shares as part of its plan to fund front end engineering and design (FEED) activities at its Nolans Neodymium and Praseodymium (NdPr) Oxide Project in the Northern Territory.
This $45 million cash injection is set to fund front end engineering and design (FEED) activities at its Nolans neodymium and praseodymium (NdPr) oxide project in the Northern Territory.