PERTH (miningweekly.com) – Rare earths developer Arafura Resources will raise A$1.5-million through a share placement to institutional and sophisticated investors, to assist in funding the completion of a definitive feasibility study (DFS) at its Nolans project, in the Northern Territory
Some 13.6-million new shares will be placed at a price of 11c each under the company’s existing capacity, meaning shareholder approval will not be required.
“It is pleasing to see the recent increase in market understanding of the importance of neodymium-praseodymium (NdPr) and its looming supply shortages into existing and emerging technologies,” said Arafura MD and CEO Gavin Lockyer.
“For many years, the focus has been on battery metals; however, the two successful capital raisings Arafura has been able to conduct this year highlights the growing investor interest in these metals.”
Arafura in September this year reported that the mine life at its Nolans project could be extended beyond 30 years, with mine planning work undertaken ahead of the DFS establishing a larger mining inventory.
The study reported a mining inventory and strategic production schedules that could allow Arafura to produce 14 000 t/y of total rare-earth oxides, including 3 600 t/y of NdPr oxide, for a period of more than 30 years.
The project is expected to have a maximum mining rate of five-million tonnes a year for the majority of the mine life, with steady-state beneficiation plant feed rate estimated at a rate of 525 000 t/y for the first 11 years of operation.