Arafura Rare Earths Limited (ARU), an Australian company focused on developing its rare earth project, has successfully completed an A$80 million placement and launched a share purchase plan (SPP) targeting A$5 million. The company is advancing the Nolans Rare Earths Project in the Northern Territory. The placement involved the issue of approximately 421.1 million new shares at A$0.190 each, split into two tranches. The first tranche raised A$70.2 million, while the second, subject to shareholder approval, aims to raise A$9.8 million.
The capital raising received strong support from both domestic and international institutional investors, including Arafura’s largest shareholder, Hancock Prospecting. In addition to the placement, Arafura is offering existing shareholders the opportunity to participate in an SPP at the same offer price of A$0.190 per new share, aiming to raise an additional A$5 million. Together, the placement and SPP are expected to raise approximately A$85 million before costs.
Arafura intends to use the proceeds from the placement and SPP to extend its cash runway and allocate funds towards project development capital upon reaching a final investment decision (FID) for the Nolans project. Upon settlement of the placement, Arafura will have a cash balance of approximately A$107 million before costs. The company has also made progress on its broader equity funding strategy, securing a A$200 million commitment from Australia’s National Reconstruction Fund Corporation and advancing discussions with the German Raw Materials Fund and Export Finance Australia.
According to Arafura’s Managing Director, Darryl Cuzzubbo, this placement partially de-risks the final equity raise and enhances the company’s negotiating leverage with potential strategic equity partners. The SPP is expected to open on Wednesday, 27 August 2025. The indicative timetable includes an Extraordinary General Meeting on Friday, 26 September 2025, to approve the second tranche placement, with settlement expected on Wednesday, 1 October 2025.
