PERTH (miningweekly.com) – Rare earths developer Arafura Resources will raise A$3-million through a share purchase plan (SPP) to advance its Nolans project, in the Northern Territory.
Eligible shareholders will be allowed to subscribe for up to A$15 000 worth of new shares in the company, with the new shares to be issued at 20% discount to the volume weighted average trading price over the five days before the date of issue.
Arafura said on Monday that the funds raised will be used to advance the Nolans project, as well as for general working capital.
The company is continuing to progress a definitive feasibility study at Nolans, and to work towards a final investment decision on the project.
The Nolans project, including the separation plant, is estimated to require a capital investment of $680-million. The Nolans project is expected to have a maximum mining rate of five-million tonnes a year for the majority of the mine life, with the steady-state beneficiation plant feed rate estimated at 525 000 t/y for the first 11 years of operation.