Arafura Resources Limited (ASX:ARU) has received firm commitments to raise A$41.5 million from Australian and overseas institutional and professional investors under a placement of fully paid ordinary shares.
The Placement was strongly supported by new and existing investors from around the globe and reflects significant interest in Arafura’s tier 1 asset and vertically integrated corporate strategy, as well as the company’s potential to deliver a secure and sustainable supply of NdPr Oxide into the global market for electric vehicles and renewables use.
Funds raised from the Placement will be used to accelerate development of the Nolans Project by:
▪ completing front-end engineering and commencement of detailed design; and
▪ commencing tendering activities for main construction contracts.
Funds raised will also be used for general working capital purposes, including ongoing marketing and sales negotiations in the US, Asia and Europe and financing activities.
Canaccord Genuity (Australia) Limited and Bell Potter Securities Limited acted as Joint Lead Managers and Bookrunners to the Placement.
“The Nolans Project is the only NdPr project in Australia that plans to mine and process ore to oxide at a single site,” Arafura’s Managing Director, Gavin Lockyer, said.
“It is pleasing that Arafura continues to receive significant interest from new and existing institutional investors, which along with our advanced discussions with a number of major global companies seeking to secure access to NdPr Oxide, clearly demonstrates the importance of Nolans to the global supply chain for critical raw materials.”
For further information please visit: https://www.arultd.com/