Arafura Resources Completes Major Equity Offering, Significantly Diluting Shareholders

Arafura Resources has finalized a substantial capital raise, resulting in considerable dilution for existing shareholders. The move concludes a $475 million financing package first announced in October 2025. The company issued precisely 1.26 billion new shares today, placing them with institutional and professional investors.

This final tranche follows an earlier placement in early November that involved over 440 million new shares. The rapid expansion of the share register over recent weeks has substantially reduced the ownership percentage of current equity holders.

Key details of the placement include:

• The issuance of 1,255,859,790 new ordinary shares
• Placement directed at institutional investors
• Completion of the $475 million financing initiative
• Proceeds aimed at reaching a Final Investment Decision (FID) for the Nolans Project

Alongside the institutional placement, Arafura ran a Share Purchase Plan (SPP) for retail investors, targeting an additional $50 million. That offer closed on December 9, 2025. The company is scheduled to announce the results of this retail participation on Monday, December 15, 2025.

Should investors sell immediately? Or is it worth buying Arafura?

Market attention will now turn to the level of demand from smaller investors and whether the full SPP amount was subscribed. This outcome could influence near-term trading sentiment for the stock.

Regulatory Compliance Confirmed

In conjunction with the share issuance, Arafura released a statement today under Section 708A(5)(e) of Australia's Corporations Act. The declaration confirms the company has met all continuous disclosure obligations and that no "excluded information" exists which should have been provided to investors.

With the immediate financing question resolved, the company's full focus shifts to deploying the newly raised capital and advancing the Nolans Project toward its final investment decision.