Materials

Arafura Rare Earths Limited (ASX:ARU) Responds to ASX Compliance Query

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Investment Commitment

Arafura Rare Earths Limited (ARU) has received a significant A$200 million convertible note investment commitment from the National Reconstruction Fund Corporation (NRFC). This funding supports the development of ARU’s Nolans Project and marks a key milestone in its staged equity strategy. The commitment is anticipated to catalyse further equity funding towards Australia’s first ore-to-oxide rare earths processing operation.

Media Release Concerns

ARU faced scrutiny following an article in the Australian Financial Review regarding the NRFC investment. The company clarified it had not intended to release a media statement until after its official ASX announcement on 15 January 2025. Due to an embargoed media release by NRFC, ARU engaged with the journalist to ensure the integrity of the information. However, it recognised this engagement did not comply with ASX Listing Rule 15.7 requirements, as information was provided prior to its announcement being released to ASX.

Steps for Future Compliance

In response to the situation, ARU is implementing additional measures to ensure adherence to ASX listing rules. These measures include refraining from releasing material on an embargoed basis while reinforcing its Disclosure Policy amongst staff and advisers. Furthermore, ARU’s responses concerning this matter have been authorised by its Board of Directors.

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Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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