Phosphate and uranium project developer Arafura Resources has accepted an offer from US-based investment fund YA Global Investments for a $20 million loan facility.

Company chairman Mick Muir said the facility would ensure the continued progress of a feasibility study at its Nolans rare earths project, north of Alice Springs.

Arafura may issue shares worth up to $20 million to YA Global at any time over the next 60 months under the terms of the facility.

Shares in the company were up 9¢ or 32.14 per cent to 37¢ at 8.01am.