Arafura Peals raises $1.8m

Arafura Pearls Ltd has raised $1.8 million through the issue of 10,500,000 fully paid ordinary shares in the company at $0.17 per share to a select group of new institutional and high net worth investors.

Arafura Pearls CEO, Andrew Hewitt, said he was delighted with the quality of the investor group that participated in the placement and saw it as evidence of the company's strong investment fundamentals and significant growth outlook.

"The industry has high barriers to entry and competitive advantages over the rest of the world which are characteristics any investor likes to see", Mr Hewitt said.

"Add to this Arafura's growth profile as we work towards and becoming Australia's second largest South Sea pearl producer, and it makes for a compelling investment opportunity."

The placement was strategic in nature to establish a relationship with this high quality group of institutional and high net worth investors.

"The placement strengthens Arafura Pearls' register, and we look forward to developing a long and successful relationship with these investors" Mr Hewitt said.

DJ Carmichael's facilitated the placement and the funds raised will go to working capital.

Arafura Pearls is involved in the growing, harvesting and sale of premium Australian South Sea pearls and hasoperated a state-of-the-art pearl oyster hatchery and farm in Arnhem Land in the Northern Territory (NT) since 1998, and harvested its first pearls in 2001.

The company also formed a farm joint-venture at Beagle Bay in Western Australia in July 2007.

Arafura has developed a MIS which leverages off its existing operations, and provides investors with a tax effective opportunity to cultivate Australian South Sea pearls.