• Arafura to supply 500 tpa of NdPr oxide to Traxys North America
• Pricing linked to independent and transparent global seaborne index
• Agreement is binding subject to satisfaction of conditions precedent

Arafura Rare Earths Limited (ASX: ARU) has announced the signing of a binding Offtake Term Sheet with Traxys North America LLC (Traxys). Under the agreement, Arafura's wholly owned subsidiary Arafura Nolans Project Pty Ltd will supply 500 tpa of NdPr oxide and 7.5 tpa of DyTb oxide to Traxys. The agreement is for a period of five years, with an option to extend by two additional years by mutual agreement. The pricing will be based on a global, seaborne pricing index such as the Benchmark Minerals Intelligence indices or S&P's Global Platts North America pricing index. The companies expect to finalize and execute a long-form offtake agreement within six months. The agreement is subject to customary conditions precedent, including Arafura undertaking a Final Investment Decision (FID) for the Nolans Project. Arafura's Managing Director Darryl Cuzzubbo stated that the offtake relationships established reflect growing alignment between industry participants and government-supported initiatives aimed at establishing resilient critical minerals ecosystems.

The agreement with Traxys North America is expected to support the revitalization and onshoring of domestic manufacturing across automotive, defence, and advanced technologies sectors in the United States. Traxys intends to seek to utilize the product for supply into the US supply chain, including the potential supply into US EXIM managed Project Vault.