Arafura Resources Ltd (ASX:ARU) has completed tranche-2 of its $40 million placement announced on June 24, raising A$18.92 million before costs.
The company has issued 157,716,220 shares to sophisticated and institutional investors and this was approved by shareholders at a general meeting on August 9, marking the final tranche of the placement.
Tranche-1 of the placement was completed on July 2 after raising more than A$21 million before costs.
Funds to kick off Nolans FEED activities
Funds raised are intended to be used to kick-off FEED activities at the company’s Nolans Project and for general working capital purposes.
Petra Capital Pty Ltd acted as sole lead manager and sole bookrunner to the placement.
SPP to close today
Additionally, the company’s share purchase plan (SPP) announced on August 10 will also complete today at 5.00pm (Sydney time).
Any application monies received after 5:00pm (Sydney time) today will not be accepted and will be returned.
The SPP is targeting to raise up to A$5 million under an offer price of 12 cents per new share, the same price as the placement.
This represents a 29.4% discount to the last closing price of ARU shares and a 29.1% discount to the five-day volume-weighted average price.
Neither the placement nor the SPP is underwritten.