Proceeds will advance the Nolans Project to project-financing stage
By Devika Patel
Knoxville, Tenn., Oct. 28 - Arafura Resources Ltd. said it will sell 75 million ordinary shares in a private placement.
The company will sell the shares at A$1.20 each, a 14.29% discount to the closing share price on Oct. 27 of A$1.40, for A$90 million in two tranches. It will sell 43.7 million of those shares in an initial tranche and the remaining 31.3 million shares upon receiving shareholder approval.
East China Exploration & Development Bureau will be invited to maintain its pro-rata shareholding of 22.17% at the placement price.
Proceeds will be used to advance the Nolans Project through to the project-financing stage and maintain the plan for first production of rare earth oxides in 2013, complete the technology demonstration work program, for resource definition drilling and for general working capital requirements.
Arafura is a mineral exploration and resource development company based in South Perth, Australia.
| Issuer: | Arafura Resources Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | A$90 million
|
| Shares: | 75 million
|
| Price: | A$1.20
|
| Warrants: | No
|
| Investor: | East China Exploration & Development Bureau
|
| Pricing date: | Oct. 28
|
| Stock symbol: | Australia: ARU
|
| Stock price: | A$1.40 at close Oct 28
|
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