PERTH (miningweekly.com) – ASX-listed Arafura Resources has completed a A$23.2-million fully underwritten pro-rata non-renounceable entitlement offer to progress its Nolans neodymium/praseodymium project, in the Northern Territory.
The entitlement offer was priced at 8.5c a share and fully underwritten by Patersons Securities.
The offer price for the entitlement offer represented a discount of 32% to Arafura’s closing price on June 17, the day before the entitlement offer was announced.
The funds will be used to further progress the development of the Nolans project, including project execution readiness to allow the award of key design and project management contracts, to start front-end engineering work, complete early contractor involvement, and the delivery and tender for long lead items.
The capital will also fund an exploration and metallurgical programme aimed at potentially increasing the Nolans mine life.
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 steady-state beneficiation plant feed rate estimated at 525 000 t/y for the first 11 years of operation.