Arafura strikes funding deal with Chin
Rebecca Lawson
WA Business News
Perth-based Arafura Resources has become the latest miner to sign an investment deal with a Chinese company, which has agreed to inject at least $8 million in return for a major shareholding.
Arafura said it has agreed to execute a letter of intent with Jiangsu Eastern China Non-Ferrous Metals Investment Holding Co, a subsidiary of the East China Exploration and Development Bureau (ECE).
Under the deal, ECE has agreed to subscribe for an initial placement of Arafura shares valued at $8.5 million with shares priced at 30 cents each.
ECE will also subscribe for further shares following the completion of the rights issue shortfall, with the new shares to be priced at 40c apiece.
On completion of the second tranche, ECE will emerge with a shareholding in Arafura of 25 per cent and will be invited to nominate two people to the Arafura board.
Both placements are subject to regulatory and shareholder approvals.
Arafura said funds raised from the ECE placement will go towards feasibility over its Nolans rare earths project in the Northern Territory.
Shares in Arafura were down 0.5c at 29c at 13:34 AEDT.
Arafura said it has agreed to execute a letter of intent with Jiangsu Eastern China Non-Ferrous Metals Investment Holding Co, a subsidiary of the East China Exploration and Development Bureau (ECE).
Under the deal, ECE has agreed to subscribe for an initial placement of Arafura shares valued at $8.5 million with shares priced at 30 cents each.
ECE will also subscribe for further shares following the completion of the rights issue shortfall, with the new shares to be priced at 40c apiece.
On completion of the second tranche, ECE will emerge with a shareholding in Arafura of 25 per cent and will be invited to nominate two people to the Arafura board.
Both placements are subject to regulatory and shareholder approvals.
Arafura said funds raised from the ECE placement will go towards feasibility over its Nolans rare earths project in the Northern Territory.
Shares in Arafura were down 0.5c at 29c at 13:34 AEDT.