Arafura Rare Earths Ltd Secures Commitments for A$350m Placement
Key points
- Commitments received for A$350m institutional placement
- Strong demand from high-quality investors
- Hancock Prospecting commits to subscribe for A$85m
Full summary
Arafura Rare Earths Limited (ASX: ARU) has successfully secured commitments for a two-tranche institutional placement to raise approximately A$350 million before costs. The placement, which will issue around 1.35 billion new shares at A$0.26 each, received strong demand from both new and existing high-quality investors. Notably, Hancock Prospecting, Arafura's largest shareholder, committed to subscribing for A$85 million. Following the placement and commitments from cornerstone investors, Arafura will have a pro forma cash balance of approximately A$1.34 billion. The placement is expected to commence construction of the Nolans Rare Earths Project, a significant step towards building a diversified Western rare earths supply chain.
Guidance
A$350m placement expected to close by July 2026
Outlook
Arafura Rare Earths Ltd expects to commence construction of the Nolans Rare Earths Project in around September 2026.
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