Perth based mineral explorer Arafura Resources NL has today lodged a prospectus to raise almost $11 million via a non-renounceable rights issue.Arafura CEO Alistair Stephens said the funds raised would be used for uranium exploration purposes and would be transferred into a new uranium exploration and investment company, NuPower Resources Ltd.The rights issue is underwritten by Bell Potter Securities Limited and will not be made available to shareholders registered outside of Australia and New Zealand. The issue price of the 30.5 million shares will be 36 cents each. Earlier this year, Arafura announced a corporate restructure which would, subject to shareholder and regulatory approvals, result in the company's Northern Territory uranium assets being transferred to NuPower.Under the proposed demerger, Arafura would retain its rare earths, gold and iron-ore assets (and the uranium content of Nolans Bore) and focus on developing the Nolans Bore rare earths project. If the proposed demerger does not proceed then Arafura will use the funds to evaluate tenements prospective for uranium, working capital in Arafura and meet the costs of the proposed demerger to date.Arafura will retain a 10 per cent holding in NuPower which is expected to be lsted early next year. At market close, Arafura's share price was down over five per cent to 44.5 cents.
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