AFR: Arafura Resources raising $40 million for rare earths mine


Rare earth mineral explorer Arafura Resources is hitting up investors for $40 million in fresh funds to support engineering and design investments, as well as general working capital.

Arafura managing director Gavin Lockyer is raising more capital to support its rare earth projects. 

The $193.2 million company went into a trading halt on Tuesday morning and had Petra Capital in its corner on the deal.

The $40 million two-tranche placement was being offered to funds for 12¢ per share, a 29.4 per cent discount to Arafura’s Monday close.

The first tranche is worth $21 million, while the second $19 million tranche and the issues of any retail share purchase plan shares, is subject to shareholder approval.

The company’s flagship project is the Nolans rare earths mine, located 135km north of Alice Springs.

Source: The Australian Financial Review