A 25% stake of Arafura Resources has been signed over to a Chinese metals company as part of a $24 million equity investment agreement that was given the green light on Friday.
Arafura managing director, Alistair Stephens, said the deal with Jiangsu Eastern China Non-Ferrous Metals will provide the company with funding to develop its Nolan rare earths-phosphate and uranium project in the Northern Territory.
The Chinese company, a subsidiary of the East China Exploration and Development Bureau (ECE), will also work with Arafura to explore iron ore and potential copper projects in the Territory.
Arafura’s current assets include the Nolans deposit, containing apatite rock, rare earths, phosphate, uranium and thorium, as well as a range of gold, nickel and vanadium tenements.
ECE will also enter into a series of joint ventures to explore other tenements in the Northern Territory.
Stephens has commended the NT Government for involving Chinese companies in exploration and development projects in the Territory and says the deal will facilitate a range of future developments.