Arafura Rare Earths has announced several major milestones in the progression of its Nolans project in the Northern Territory, including a billion-dollar funding package.
The company has now confirmed conditional credit approvals for its $US775 million ($1.1 billion) senior debt facility target from commercial lenders and export credit agencies.
The debt package totals more than $US1 billion ($1.5 billion), including project completion support provided by an $US80 million ($120 million) cost overrun facility and a subordinated standby liquidity facility of $US200 million ($301 million).
“Today I am proud to announce the completion of Arafura’s debt funding strategy,” Arafura managing director and chief executive officer Darryl Cuzzubbo said.
“Securing conditional approval for more than $US1 billion of debt funding and completion support is an incredible result and one that reinforces the value of Nolans in diversifying a global NdPr supply chain.”
Nolans is on track to be one of Australia’s first ore-to-oxide rare earths processing facilities that will deliver responsibly mined and processed products to its global customers.
Cubbuzzo said while it is important to acknowledge the achievement, the company is also looking at future growth opportunities.
“The Nolans Phase 2 preliminary study has confirmed there is merit to further investigating the potential to increase the processing capacity by up to a further 150 per cent,” he said.
“Looking at expansion potential today will underpin our growth in two ways, aligning to growing global demand for rare earths as the world decarbonises, and becoming a third-party rare earths downstream processing hub, building Australia’s downstream capability.
“Our next major milestone is securing equity funding and reaching final investment decision at Nolans in 2024.”
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