Arafura Rare Earths (ASX: $ARU) Capital Raising Announcement

Arafura Rare Earths Limited (ASX: $ARU) has commenced a capital raising process to secure A$20 - A$27 million for the development of the Nolans Project. The capital raising includes a fully underwritten two-tranche Placement to raise A$20 million from sophisticated and institutional investors, along with a Share Purchase Plan targeting to raise up to an additional A$7 million. The company has achieved credit approvals for the debt-led funding strategy, ensuring substantial progress in financing the Nolans Project. The funds raised are anticipated to support the Company's funding initiatives and provide a sufficient cash runway through to mid-2025, enabling focused efforts on finalizing strategic equity funding and offtake initiatives required for FID. Upon reaching FID, construction activities for the shovel-ready Nolans Project will commence immediately.

Executive Commentary on Capital Raising and Nolans Project Development

The company is pleased to announce the initiation of the capital raising process, which marks a significant milestone in advancing the Nolans Project. The fully underwritten Placement and the Share Purchase Plan demonstrate the confidence of sophisticated and institutional investors in the project's potential. The credit approvals obtained for the debt-led funding strategy further reinforce the Company's financial position and its ability to progress the Nolans Project towards the final investment decision. The funds raised will play a crucial role in supporting our funding initiatives and ensuring a robust financial runway, allowing us to concentrate on securing strategic equity funding and offtake arrangements essential for the project's development. We are committed to swiftly moving into the construction phase upon reaching the final investment decision, underscoring our dedication to realizing the Nolans Project's substantial value and strategic importance.

Summary of Arafura Rare Earths' Capital Raising and Nolans Project Outlook

Arafura Rare Earths Limited (ASX: $ARU) has announced a capital raising initiative to secure A$20 - A$27 million for the advancement of the Nolans Project. The company has made significant progress in financing the project, obtaining credit approvals for the debt-led funding strategy. The funds raised are expected to provide financial support through to mid-2025, enabling focused efforts on finalizing strategic equity funding and offtake initiatives required for the project's final investment decision. The Nolans Project, deemed shovel ready, is poised to commence construction activities immediately upon reaching FID. The announcement also outlines various risks associated with the investment, including legislative, environmental, financial, and geopolitical factors. Arafura Rare Earths' commitment to securing funding and advancing the Nolans Project underscores its dedication to realizing the project's potential and strategic significance in the rare earths industry.