Arafura to raise A$375m and settle equity component for Nolans build
Following a positive final investment decision to proceed with the $1.6-billion Nolans rare earth project in Australia, ASX-listed Arafura Rare Earths has launched a A$350-million institutional placement at A$0.26 apiece.
The placement will be undertaken in two tranches, with the first aimed at raising A$175-milion and the second the balance.
Arafura’s largest shareholder, Hancock Prospecting, which is chaired by Australia’s richest individual Gina Rinehart, has committed to subscribe for A$85-million in the placement.
This will increase Hancock’s shareholding to 17.5% upon completion of the placement.
Arafura confirms that the proceeds of the placement, combined with A$430-million to be received in equity commitments from the German Raw Materials Fund, Export Finance Australia and Australia’s National Reconstruction Fund Corporation, and A$481-million of equity having been raised in the fourth quarter last year, ensure the company is fully funded in respect of the equity component for developing the Nolans project.
Arafura also plans to undertake a share purchase plan for eligible existing shareholders to raise up to A$25-million at the same price as the placement. Arafura expects to have a cash balance of A$911-million at the end of its fundraising activity.
The group has also secured binding offtake agreements for 93% of Nolans’ production. Nolans is poised to be Australia’s first fully integrated ore-to-oxide rare earths operation.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Roytec Global is an international company specializing in liquid / solid and mineral separation technologies for the Mining and Industrial sectors.
VISIT SHOWROOM
Virtual Gas Network supplies compressed natural gas via a virtual gas distribution network.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
