Nolans momentum continues with $350 million placement commitments - Australian Mining
Just days after the board reached a final investment decision for the Nolans project in the Northern Territory, Arafura Rare Earths has received commitments to raise $350 million, pushing its forecasted cash. . .
Just days after the board reached a final investment decision for the Nolans project in the Northern Territory, Arafura Rare Earths has received commitments to raise $350 million, pushing its forecasted cash balance to roughly $1. 341 billion. These commitments will be received through a two-tranche institutional placement of approximately 1. 346. 2 million new, fully paid, ordinary shares (new shares) at an offer price of A$0. 26 per new share. The miner said that this placement was “well supported” by new and existing institutional investors, including Arafura’s largest shareholder, Hancock Prospecting, which committed to subscribe for roughly $85 million (or 326. 9 million new shares) in the placement. Following this, Hancock will hold an interest of 17. 5 per cent in the company, taking effect after completion of tranche two and before any shares are issued under the share purchase plan (SPP) or cornerstone investor arrangements. Arafura’s SPP is targeting to raise roughly $25 million at the same offer price as the placement, which is $0. 26 per share. Arafura chief executive officer (CEO) and managing director Darryl Cuzzubbosaidthat the strong support received for this capital raising is a “clear endorsement” of the Nolans rare earths project and Arafura’s role in building a “diversified”, Western rare earths supply chain. “With this successful result and the board’s recent final investment decision, we look forward to commencing construction of this nationally significant project, which we are targeting in around September 2026,” he said. Settlement under tranche one of the placement is expected to occur on Thursday, May 28, with tranche two settlement expected on Wednesday, July 8, subject to shareholder approval. Hancock executive chairman Gina Rinehart said her company is pleased to support the development in the Northern Territory, saying “it will play a vital strategic role in the global critical minerals supply chain. ”Whenthe final investment decision (FID) was announced, Arafura confirmed that it is now positioned to become Australia’s first fully integrated ore-to-oxide rare earths operation with ambitions to supply around five per cent of global rare earth demand. The miner said that the Nolans project is expected to support more than 600 construction jobs and around 350 ongoing operational roles, with Cuzzubbo saying that reaching FID reflected years of “disciplined execution” and partnership building. “The patience required to secure this foundation has been repaid in the resilience of what we now have,” he said. Likewise, the Minerals Council of Australia (MCA) said that Nolans represents one of the most significant rare earth developments currently progressing in the country. MCA chief executive officer Tania Constable said Nolans is a “nationally significant” development. “It is one of a limited number globally capable of producing NdPr [neodymium-praseodymium] oxide outside China,” she said. Subscribe toAustralian Miningand receive the latest news on product announcements, industry developments, commodities and more.