Arafura Resources has inked an agreement with a China-based rare earths producer with an aim to jointly develop the Nolans rare earths project in the Northern Territory.
Perth-based Arafura said today it had signed a memorandum of understanding with rare earths firm Shenghe Resources Holding Co, under which the Chinese company will review the Nolans definitive feasibility study and be given the opportunity to co-fund the project once the study is released.
Arafura and Shenghe will also determine opportunities for the sale and distribution of rare earths products to Shenghe’s existing customers.
Under the terms of the agreement, the companies will seek to develop an international rare earths business.
The company’s shares are up 30 per cent on the ASX today, trading at 12 cents.
Shenghe is listed on the Shanghai Stock Exchange and is considered a leader in rare earths production and project development.