• Successful A$475m institutional placement to fund Nolans Project
• Placement well supported by new and existing high-quality investors
• Hancock Prospecting to hold ~15.7% stake post placement

Arafura Rare Earths Limited (ASX: ARU) has received commitments to raise approximately A$475 million (before costs) via a two-tranche institutional placement of approximately 1,696.4 million new fully paid ordinary shares at an offer price of A$0.28 per share. Tranche one of the placement will raise ~A$123.4 million, while tranche two, subject to shareholder approval, is expected to raise ~A$351.6 million. The placement was well supported by new and existing high-quality institutional investors, including Arafura's largest shareholder, Hancock Prospecting Pty Ltd, which has committed to ~A$125 million (~446.4 million new shares) in the placement. Following completion of the placement, Hancock will hold an interest in the company of ~15.7%. The funds raised will support Arafura's final investment decision announcement for its Nolans Project, expected early next year, and the commencement of construction on what the company describes as an 'iconic project for Australia of global significance'.

The successful completion of the A$475 million placement provides further validation of the importance of Arafura's Nolans Project and will support the company's final investment decision and the commencement of construction on the project, which is expected to be of global significance.