Gina Rinehart grows her shareholding in Arafura Rare Earths after tipping in $125m into $525m capital raise
Gina Rinehart will cornerstone Arafura Rare Earths’ $525 million capital raise, boosting her status as a key player in the critical minerals alliance being forged by Australia and the United States.
Mrs Rinehart’s Hancock Prospecting will take up $125m of the $475m share placement, which increases her stake in Arafura from 9.4 per cent to 15.7 per cent.
The entire equity raise, including the share purchase plan to raise $50m, will be at 28¢ each — a 26 per cent discount to Arafura’s last closing price.
Australia’s richest person is a major investor in numerous other ASX-listed rare earth companies, including Lynas Rare Earths, St George Mining and Brazilian Rare Earths.
She is also one of the largest shareholders in the US’ main rare earths producer — MP Materials.
Arafura joins a bevy of other rare earth hopefuls and producers to rattle the tin in recent weeks. Share prices of these companies have been at lofty heights amid hype of a government-fuelled cash splash to build a Western World rare earths supply chain.
Arafura launched its capital raise a week after the Federal Government earmarked a $US100 million investment for its Nolans rare earths project in the Northern Territory.
This investment was tied to a multi-billion-dollar critical minerals pact between Australia and the US signed by Anthony Albanese and Donald Trump.
Arafura’s capital raise is set be the final piece of the funding puzzle to get the $US1.5 billion ($2.3 billion) Nolans project into production. Construction on Nolans is slated to start next year.
Gina Rinehart will cornerstone Arafura Rare Earths’ $525 million capital raise, boosting her status as a key player in the critical minerals alliance being forged by Australia and the United States.
thewest.com.au
