Arafura Rare Earths Limited (ASX: ARU) ('Arafura' or the 'Company') is pleased to provide an update on the status of the capital raising announced to the ASX on 24 July 2024 ('Capital Raising').
The Company has received firm commitments for its fully underwritten placement (across two-tranches) of new fully paid ordinary shares ('New Shares') to raise A$20 million (before costs) ('Placement') at an offer price of A$0.16 per New Share ('Offer Price'). The Placement was well supported, with high levels of institutional participation that included leading investor groups domestically and abroad, which led to the decision to meet that demand and launch a two-tranche deal.
Tranche 1 of the Placement will utilise the Company's existing placement capacity under ASX Listing Rule 7.1 (and the issue is not subject to shareholder approval). Tranche 2 of the Placement is subject to shareholder approval. Arafura will resume trading on the ASX from market open today, 25 July 2024, with settlement under Tranche 1 of the Placement expected to occur on 31 July 2024. Settlement of Tranche 2 of the Placement is expected to occur on 6 September 2024, subject to shareholder approval being obtained. The Company will shortly despatch a notice of meeting to convene an extraordinary general meeting of shareholders expected to be held on 4 September 2024 (EGM). In addition to the Placement, and as announced to ASX on 24 July 2024, the Company is offering all eligible existing shareholders on the Company's share register at 7.00pm (AEST) on Tuesday, 23 July 2024 with a registered address in Australia or New Zealand the opportunity to apply for New Shares in the Company by participating in a Share Purchase Plan ('SPP'). The Company is targeting to raise A$7 million (before costs) through the SPP (with the ability to accept oversubscriptions of up to A$3 million), and the offer price under the SPP is the same as the Offer Price under the Placement. Further details regarding the SPP will be contained in a prospectus that will be prepared and lodged with ASIC (and released to ASX) in due course ('Prospectus')
Contact:
Shaan Beccarelli
Tel: +61 455 559 553
Email: sbeccarelli@arultd.com
Forward Looking Statements
This announcement contains certain statements which may constitute 'forward-looking statements.' These statements can be identified by the use of words like 'will', 'progress', 'anticipate', 'intend', 'expect', 'may', 'seek', 'towards', 'enable' and similar words or expressions containing same. Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performance achievements to differ materially from those expressed or implied in this announcement. No representation or warranty, express or implied is made by Arafura that any forward-looking statement contained in this announcement will occur, be achieved or prove to be correct. You are cautioned against relying upon any forward-looking statement. Content presented in this announcement is provided as at the time of this announcement (unless otherwise stated). Reliance should not be placed on information or opinions contained in this announcement and, subject only to any legal obligation to do so, Arafura accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in this announcement or any other information made available to a person, nor any obligation to furnish the person with any further information. The forward-looking statements reflect the Company's views and assumptions with respect to future events as of the date of this announcement and are subject to a variety of unpredictable risks, uncertainties, and other unknowns. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, many of which are beyond our ability to control or predict. Given these uncertainties, no one should place undue reliance on any forward-looking statements attributable to the Company, or any of its affiliates or persons acting on its behalf. The Company does not undertake any obligation to update or revise any forwardlooking statements, whether as a result of new information, future events or otherwise. Neither the Company nor any other person gives any representation, warranty, assurance, or guarantee that the occurrence of the events expressed or implied in any forward-looking statement will actually occur. To the maximum extent permitted by law, the Company and each of its advisors, affiliates, related bodies corporate, directors, officers, partners, employees and agents disclaim any responsibility for the accuracy or completeness of any forward-looking statements whether as a result of new information, future events or results or otherwise.
(C) 2024 Electronic News Publishing, source ENP Newswire