Arafura taps investors for $5m

Rare earths explorer Arafura Resources has announced a $5.1 million capital raising to fund ongoing work at its Nolans project in the Northern Territory.

Perth-based Arafura raised $3.6 million from investors through the placement of 52.9 million shares at a price of 6.8 cents each, representing a 20 per cent discount to its 20-day volume-weighted average price.

It also plans to raise a further $2.5 million by way of a share purchase plan, which will be priced “at the lower of a 20 per cent discount to Arafura’s five-day VWAP”.

Arafura said in a statement it will put the funds towards final feasibility pilot programs underway at Nolans.

Origin Capital Group and Tectonic Advisory Partners assisted Arafura in the raising.

Shares in Arafura were 19 per cent lower to 8.1 cents each at the close of trade.