
Arafura Rare Earths, developer of the Nolans rare earths project in Australia’s Northern Territory, has secured about A$80 million (US$54.4 million) via a two-tranche institutional placement at A$0.19 (US$0.13) a share, issuing roughly 421.1 million new shares, and will open a A$5 million (US$3.4 million) share purchase plan (SPP) on 27 August 2025. If the SPP is fully subscribed, total gross proceeds are expected to be about A$85 million (US$57.8 million) before costs, supporting progress toward a final investment decision (FID) and accelerating main construction thereafter.
Funding structure and use of proceeds
The placement was executed at A$0.19 per share, with the company confirming the SPP will be offered on the same terms to eligible existing shareholders from Wednesday, 27 August 2025. Managing director Darryl Cuzzubbo said: “This inbound-led placement partially de-risks the final equity raise while also enhances the company’s negotiating leverage as we look to close out discussions with a range of potential strategic equity partners and deliver on the equity funding strategy.”
Arafura said most of the capital will be directed to bringing forward critical works once a positive FID is taken. “Whilst this placement strengthens our balance sheet, the majority of proceeds will be used to accelerate main construction at FID,” Cuzzubbo said. He added that recent policy and industry moves in the West are supportive of rare earth supply chain build-out, noting that “the strong tailwinds for Western supply of rare earths, highlighted by MP Materials recent partnership with the US Department of Defence, gives Arafura confidence that it can finalise its equity funding package in a timely and attractive manner.”
Market context and policy tailwinds
Western governments have stepped up efforts to localise or friend-shore parts of the permanent-magnet supply chain, with defence and energy transition uses often cited as priorities. Arafura is positioning Nolans to supply neodymium-praseodymium (NdPr) into this ecosystem, where policy support, offtake visibility and project-finance frameworks can materially influence the timing of FID decisions and construction schedules.
Industry context and applications
NdPr is essential for high-performance permanent magnets used in electric-vehicle traction motors, wind-turbine generators, industrial automation, and defence systems. These end-markets prize supply security and traceability alongside cost and performance, intensifying buyer interest in projects located in stable jurisdictions with clear environmental approvals and downstream processing plans.