Rare earths producer Arafura Resources is set to embark on a A$40 million capital raising campaign to advance its flagship Nolans Project.
Located 135km north of Alice Springs in Australia’s Northern Territory, the Nolan Project covers a proposed rare earths mine and processing operation which could supply up to 10% of the world’s demand for rare earths used in magnets.
Arafura’s Managing Director, Gavin Lockyer, said the company has received ‘firm commitments’ from Australian and overseas institutional and sophisticated investors to raise the funds, which Arafura will use to commence FEED activities at the Project and for general working capital purposes.
“We are delighted with the support for the Placement, and welcome a number of Australian and offshore institutional investors to the register,” he continued.
“The Nolans Project is the only new shovel ready NdPr Oxide project in Australia capable of delivering advanced materials into the critical minerals supply chain.
“The Company welcomes the support of new and existing shareholders and looks forward to applying their funds towards advancing the Nolans Project.
“Nolans has the potential to diversify rare earth supply chains whilst seeding new industry in Australia, one of the world’s safest and most secure jurisdictions.”