Arafura sells NT gold project to focus on rare earths

PERTH (miningweekly.com) − Rare-earths-miner Arafura has sold its Mount Porter-Frances Creek gold project, in the Northern Territory, to Global Mineral Resources under a cash-and-scrip offer.

Arafura would receive A$1,5-million in cash along with 7,5-million fully paid ordinary shares in Global and a further 7,5-million options, exercisable at 25c an option.

“We are very pleased with this outcome. It enables Arafura to realise value from one of our noncore assets in the near term as we focus on rare earths and our world-class Nolans project,” said MD and CEO Steve Ward.

Arafura aims to start production at Nolans by the second half of 2013. The project contains an estimated 850 000 t of rare-earth oxides, 3,9-million tons of phosphate pentoxide, and a further 13,3-million pounds of uranium.

At current prices, Arafura would receive $1,5-billion each year from rare-earth sales alone, before other products were considered.

Ward said that as an emerging minerals exploration company, Global was in a strong position to develop the Mount Porter-Frances Creek project.

The project includes a 34 200-oz inferred and indicated Joint Ore Reserves Committee resource at Mount Porter, as well as gold exploration and development rights over several adjacent licences in the Frances Creek region.

“We also look forward to being a significant shareholder in Global and, as such, we are positioned to capture more value as Global develops this and other projects in their portfolio.”

Global is a junior resources company focused on developing advanced exploration projects, with a portfolio of gold and base-metals projects in Australia.