Arafura Rare Earths Limited (ASX: ARU), an Australian company focused on developing its rare earth projects, has announced a share purchase plan (SPP) to raise up to $50 million, with the ability to accept oversubscriptions up to a further $20 million. Arafura Rare Earths is focused on the development of the Nolans Project in the Northern Territory, which will produce Neodymium-Praseodymium (NdPr) oxide, a critical material for electric vehicles, wind turbines, and other high-growth applications. The funds raised will be primarily directed towards the Nolans Project’s capital costs, financing costs, and the cash component of the cost overrun facilities, along with general working capital and associated corporate and transaction expenses.
The SPP offers eligible shareholders the opportunity to purchase up to $30,000 of new fully paid ordinary shares at a price of $0.28 per share. This price mirrors the issue price under the company’s recent placement and represents a 25.3% discount to the closing price of Arafura shares on October 27, 2025. Participation in the SPP is optional and is available to shareholders who were registered holders of shares as of the record date, October 27, 2025, with a registered address in Australia or New Zealand. The offer is not extended to shareholders in the United States or those acting on behalf of individuals in the United States.
The SPP offer opens on November 6, 2025, and is scheduled to close on December 9, 2025, unless extended, withdrawn, or closed early by the company. Arafura reserves the right to scale back applications at its discretion, depending on the level of demand. If the SPP raises less than $50 million, the company reserves the right to place any shortfall shares at $0.28 per share with specific investors, subject to shareholder approval and compliance with ASX listing rules.
The issue of new shares under the SPP is contingent upon shareholder approval, which will be sought at a general meeting scheduled for around December 5, 2025. The company will announce the outcome of the SPP offer and the number of SPP shares to be issued via an ASX announcement as soon as practicable after the offer closes. Eligible shareholders wishing to participate should follow the instructions outlined in the prospectus and on the application form.
