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The global importance of the Nolans rare earths project

Nolans project

Arafura Resources has bolstered its Nolans rare earths project in Northern Territory after receiving firm commitments for a $41.5 million capital raise.

The placement cost $0.265 per share – representing a 17.2 per cent discount to Arafura’s closing share price on August 2 – and will see 156.7 million new Arafura shares issued.

Arafura said the placement was strongly supported by new and existing investors from around the globe, demonstrating the popularity and importance of the Nolans project.

“The Nolans project is the only NdPr (neodymium-praseodymium) project in Australia that plans to mine and process ore to oxide at a single site,” Arafura managing director Gavin Lockyer said.

“It is pleasing that Arafura continues to receive significant interest from new and existing institutional investors, which along with our advanced discussions with a number of major global companies seeking to secure access to NdPr oxide, clearly demonstrates the importance of Nolans to the global supply chain for critical raw materials.”

Funds raised from the placement will support the completion of front-end engineering and commencement of detailed design at Nolans, along with commencing tendering activities for main construction contracts.

Arafura will also use the funds for general working capital purposes, including ongoing marketing and sales negotiations in the US, Asia and Europe and financing activities.

Aiming for a final investment decision (FID) in the second half of 2022, Arafura aims to achieve first production at Nolans in 2024.

Arafura signed a non-binding memorandum of understanding (MoU) with GE Renewable Energy in July that will see the two collaborate in the establishment of a sustainable NdPr supply chain, with GE to purchase NdPr from Nolans on a long-term sales agreement.

Nolans has the potential to support mining and processing operations for 38 years at a design capacity of 340,000 tonnes of concentrate production per annum.

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