Highlights

• Arafura Rare Earths calls an Extraordinary General Meeting (EGM) on September 26, 2025.
• Purpose of EGM: $80M capital raise to support Nolans Rare Earths Project.
• Capital raise details:
  • Two tranches involved:
    • $70.2M already raised.
    • $9.8M pending shareholder approval with director participation.
• Key investor concerns:
  • Final Investment Decision timing.
  • Offtake contracts.
  • Potential government financing support.

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Arafura Rare Earths Limited (ASX: ARU) has called an Extraordinary General Meeting (EGM) for September 26, 2025, seeking shareholder approval for key parts of its A$80 million capital raise. The financing is tied to its flagship Nolans Rare Earths Project in the Northern Territory.

From the Company Filing: The Mechanics of the Raise

• Tranche 1: Completed August 26, raising ~A$70.2 million through the issue of 369,649,303 shares at A$0.19 each. Participants included sophisticated and institutional investors, with Hancock Prospecting Pty Ltd disclosed as a substantial shareholder subscriber.

• Tranche 2: Subject to shareholder approval at the EGM, will issue ~51.4 million shares at A$0.19 to raise ~A$9.8 million. This tranche includes allocations to directors:

• Darryl Cuzzubbo (ManagingDirector): 789,473 shares (~A$150k)

• Mike Spreadborough (Non-Executive Director): 263,157 shares (~A$50k)

• Ian Murray (Non-Executive Director): 526,315 shares (~A$100k)

• Total director participation: ~A$300k.

• Share Purchase Plan (SPP): In parallel, Arafura is offering an SPP targeting A$5 million, with the ability to scale back or accept oversubscriptions.

• Use of Proceeds: Funds are earmarked for corporate, working capital, transaction costs, and project development capital upon Nolans’ Final Investment Decision (FID).

REEx Investor Lens: What’s Missing in the Filing

While the mechanics of the raise are straightforward, retail investors should press on several unanswered points:

• FID Timing: When will Nolans’ long-awaited Final Investment Decision actually land?
• Offtake Certainty: Beyond earlier framework agreements with Hyundai, Kia, and Siemens Gamesa, will Arafura secure binding long-term contracts?
• Government Backing: With Nolans positioned as a cornerstone ex-China rare earth separation project, will Canberra or Washington step up with financing or guarantees?

Investor Takeaway

The EGM resolutions are likely to pass with broad support. But the capital raise is necessary, not sufficient. The real pivot for Arafura is project de-risking — securing government financing packages and binding OEM offtakes that could move Nolans from aspiration to production reality.

Source: Arafura Rare Earths Limited, Notice of Extraordinary General Meeting and Explanatory Memorandum (August 27, 2025).

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