PERTH (miningweekly.com) – Australian rare-earths company Arafura Resources on Friday reported that it had raised A$19,5-million through a placement and renounceable rights issue.
Arafura MD and CEO Dr Steve Ward said the company had structured its capital-raising programme to allow eligible shareholders to participate on the same terms and conditions offered to institutional shareholders and sophisticated investors in the placement.
“We considered it was important to recognise the loyalty shown by our long-term shareholders and, yet again, a number demonstrated their support and commitment to the company.”
Ward said that Arafura would use the funds raised from this capital raising to step up activities to bring the Nolans rare-earth/phosphate/uranium project, in the Northern Territory, into production in 2013, as scheduled.
“We began 2010 with a clear determination to progress the Nolans project at full pace to enable Arafura to become an operator as soon as possible. This would enable Arafura to take advantage of favourable market conditions, with forecast future shortfalls for rare earths.”
Ward noted that the successful raising of funds to enable the company to progress its plans was a key objective for Arafura, which it has now achieved.
“Arafura now has cash on hand to progress development of our flagship Nolans project in line with our stated timetable. We will be judicious in assessing all options available to meet the future capital requirements to develop the project in a way that delivers maximum return to our shareholders.”
Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
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