Arafura Resources stocks have soared after it signed a letter of intent with ThyssenKrupp Metallurgical Products to develop a long-term commercial agreement for the sale of rare earth oxide products into Germany.
The Perth-based miner said today the agreement would account for 15 per cent of its planned 20,000 tonnes of annual rare earths production from its Nolans project, which comprises two sites in South Australia and the Northern Territory.
At 12:40PM (WST) Arafura’s stock was up 13.2 per cent, to 64 cents.
ThyssenKrupp also agreed to work with Arafura to obtain the funding necessary to develop Nolans.
Arafura managing director Steve Ward said the agreement was a major milestone in the project’s development.
“Our engagement with ThyssenKrupp follows a comprehensive strategic review of suitable customers from across the globe,” Dr Ward said in a statement.
“This LOI is the first major outcome from this marketing strategy and discussions continue with other targeted customers worldwide.”