PERTH (miningweekly.com) – Rare earths developer Arafura Resources will raise A$7-million from a share placement to institutional and professional investors to fund early engineering works for pre-front-end engineering design at its Nolans neodymium praseodymium (NdPr) project, in the Northern Territory.
The company has received firm commitments for the placement of some 112.9-million shares, at an issue price of 6.2c each, with the placement to be conducted under Arafura’s existing placement capacity.
“The Nolans project is the only new NdPr oxide project in Australia with all environmental approvals granted to deliver advanced materials into the critical minerals supply chain,” said Arafura MD Gavin Lockyer.
“The significant interest from new and existing institutional investors is a strong endorsement of Arafura’s 100%-owned Nolans project and the role it is expected to play in diversifying rare earth supply chains while seeding new industry in Australia, one of the world’s safest and secure jurisdictions.”
A definitive feasibility study estimated that Nolans could be developed at a capital cost of just over A$1-billion, to deliver 293 000 t/y of concentrate, containing 4 357 t/y NdPr oxide, 135 808 t/y of phosphoric acid and 13 343 t/y total rare earth oxide equivalent.