Arafura Resources Secures Major Funding Milestone for Rare Earths Project

Australian rare earths developer Arafura Rare Earths has significantly strengthened its balance sheet, providing crucial momentum for its flagship Nolans project. The company's latest quarterly report revealed a substantial increase in available funds, bringing a pivotal Final Investment Decision (FID) into clearer focus.

Arafura's cash reserves now stand at approximately 571 million Australian dollars. This notable boost stems primarily from a successful capital raise initiative. The company secured over 480 million AUD through a combination of a placement and a Share Purchase Plan. These funds are earmarked for advancing the Nolans rare earths project, located in Australia's Northern Territory.

Key Drivers Toward a Final Investment Decision

The injection of capital allows Arafura to accelerate critical workstreams. Management has targeted the end of the second quarter of 2026 for the Final Investment Decision on Nolans.

Several foundational elements are now in place to support this timeline:
* Conditional Debt Approvals: The company has secured conditional commitments for debt financing totaling 775 million USD. This support comes from a consortium of commercial banks and export credit agencies.
* Appointment of EPCM Contractor: Arafura has appointed Hatch to provide Engineering, Procurement, and Construction Management (EPCM) services, a key step in ensuring the project's practical execution.

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Project Aligns with Growing Market Demand

Progress at Nolans coincides with rising global demand for rare earths, particularly Neodymium-Praseodymium (NdPr). These materials are essential components in the permanent magnets used in electric vehicles and wind turbines.

The Nolans project is positioned to contribute to a more diversified and independent supply chain for these critical minerals. Once operational, it is expected to meet a significant portion of global NdPr demand.

With a strengthened treasury of 571 million AUD, substantial conditional debt commitments, and a key EPCM partner onboard, Arafura has assembled core prerequisites for moving forward. The company's path toward a Final Investment Decision by mid-2026 is now underpinned by these concrete financial and operational advancements.