Arafura Resources has firm commitments to raise $41.5m to accelerate development of its Nolans Neodymium Praseodymium (NdPr) project in the NT.

The placement at $0.265 per share was strongly supported by new and existing investors from around the globe – and reflects significant interest in the company’s “tier 1 asset and vertically integrated corporate strategy.”

It also reinforces the project’s potential to deliver a secure and sustainable supply of NdPr Oxide into the global market for electric vehicles and renewables use.

Secure spot in the supply chain

NdPr are key components of the rare-earth magnets needed in the motors and generators of electric and hybrid vehicles, wind turbines, and other clean energy applications.

There is currently no known substitute for these magnets, and Arafura Resources (ASX:ARU) MD Gavin Lockyer says the Nolans project has a secure spot in the global NdPr supply chain, particularly given the project’s ability to meet ESG credentials for its customers.

“The Nolans Project is the only NdPr project in Australia that plans to mine and process ore to oxide at a single site,” he said.

“It is pleasing that Arafura continues to receive significant interest from new and existing institutional investors, which along with our advanced discussions with a number of major global companies seeking to secure access to NdPr Oxide, clearly demonstrates the importance of Nolans to the global supply chain for critical raw materials.”

Accelerating development and FID

The funds will be used to progress development of the Nolans Project, through front-end engineering and commencement of detailed design (FEED) and commencement of detailed design and construction tendering.

They will also be used for general working capital purposes, including ongoing marketing and sales negotiations in the US, Asia and Europe as well as financing activities on a pathway to a final investment decision (FID) for the project.

 

 

 

This article was developed in collaboration with Arafura Resources, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

 

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