Arafura Rare Earths completes Tranche 2 placement

Arafura Rare Earths Limited (ASX:ARU) has successfully completed Tranche 2 of the A$20 million fully underwritten placement, issuing 36,268,000 new fully paid ordinary shares to sophisticated and institutional investors, raising $5.8 million before costs. Tranche 1 of the Placement, which comprised the issue of 88,732,000 shares, was completed on 25 July 2024. The Company is also undertaking a share purchase plan (SPP) alongside the Placement, targeting to raise an additional A$7 million with the ability to accept oversubscriptions of up to a further A$3 million. The SPP is expected to close on 9 September 2024 with results announced on 11 September 2024.

Executive Commentary

The completion of Tranche 2 of the placement marks another significant milestone for Arafura Rare Earths. We are pleased with the support received from sophisticated and institutional investors, which reflects confidence in our strategic initiatives. The funds raised will further strengthen our financial position and support the ongoing development of our projects. We look forward to the successful completion of the share purchase plan and remain committed to delivering long-term value to our shareholders.

Summary

Arafura Rare Earths Limited (ASX:ARU) has successfully completed Tranche 2 of the A$20 million fully underwritten placement, raising $5.8 million before costs. The Company is also undertaking a share purchase plan (SPP) targeting to raise an additional A$7 million with the ability to accept oversubscriptions of up to a further A$3 million. The SPP is expected to close on 9 September 2024 with results announced on 11 September 2024. The completion of the placement and the ongoing SPP demonstrate Arafura's commitment to strengthening its financial position and advancing its strategic objectives. The additional funds will support the Company's projects and contribute to its long-term growth objectives.