Arafura launches $27m capital raise
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More news: Arafura Rare Earths has launched a capital raising, targeting $20 million to $27 million, to continue advancing towards development of its Nolans project, an ore-to-oxide rare earths processing facility in the Northern Territory.
The rare earths miner said the capital raising will comprise a two-tranche placement to raise $20 million from sophisticated and institutional investors, as well as a share purchase plan (SPP) to raise an additional $7 million, with the ability to accept oversubscriptions up to a further $3 million.
Arafura said the capital raising is expected to support advancement of the company's funding initiatives and provides a sufficient cash runway through to mid-2025, to allow it to focus on finalising its strategic equity funding and offtake initiatives required for its final investment decision (FID).
The Nolans project is "shovel ready" and the company will commence construction activities immediately upon reaching FID, it said.
What they said: Arafura managing director Darryl Cuzzubbo said: "The two-tranche placement demonstrates the strong support for Arafura and the Nolans project underpinned by the updated robust project economics that were released earlier this week".
"Coupled with the SPP, this capital raising will provide us with the additional financial runway to work towards securing the equity capital required to fully fund the Nolans project," he said.
Arafura enters trading halt ahead of capital raise
The news: Arafura Rare Earths has entered a trading halt on the ASX, pending the announcement of a capital raise.
The numbers: Arafura closed 2.63% higher at $0.19 on Tuesday after receiving conditional approvals for $1.12 billion in senior debt funding.
The context: The Gina Rinehart-backed company requested that the trading halt remain in place until the earlier of the Arafura releasing an announcement regarding completion of the placement component of the capital raising, or the commencement of trading on Friday.
On Tuesday, Arafura announced a "major debt funding milestone", moving it closer to a final investment decision on its Nolans project in the Northern Territory, an ore-to-oxide rare earths processing facility.
The sources: ASX announcement, ASX announcement
