The board of WA based company Arafura Resources NL has further consolidated its restructure plans, spinning off its Northern Territory uranium assets into a new exploration company.
The board of WA based company Arafura Resources NL has further consolidated its restructure plans, spinning off its Northern Territory uranium assets into a new exploration company.
Arafura will undertake a nonrenounceable rights issue to raise sufficient working capital for the new company and to meet its listing requirements.
Management is currently in the process of preparing the documentation required for the shareholder approval, Rights Issue and compliance listing processes and approvals. The associated announcements to shareholders and the market will be made at the appropriate time.
Following shareholder approval, it is Arafura's intention to proceed with the demerger subject to receiving appropriate Australian Stock Exchange approval for the new company to be admitted to the Official list.
The demerger will allow Arafura to concentrate on development of its Nolans Bore rare earths project.
Arafura recently raised $5.5 million in a shareholder share purchase plan and has a cash balance of about $6 million.
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