Arafura Rare Earths Ltd (ASX: ARU) has finalised the second tranche of its major capital raising initiative. The company successfully issued 671,027,560 new fully paid ordinary shares to a group of institutional and sophisticated investors. This issuance generated approximately A$174.5 million in gross proceeds for the company.

The completion of this second phase follows the necessary shareholder approval, which was officially secured on 2 July 2026. This latest capital injection serves as a significant component of the broader A$350 million placement plan originally announced by the company on 22 May 2026. The initial tranche of this placement, which consisted of over 675 million shares, was previously finalised on 29 May 2026. The funds raised through these placements are intended to bolster the financial position of the company as it advances the Nolans project in Australia.

In addition to the institutional placement, Arafura previously launched a share purchase plan aimed at raising up to an additional A$25 million. This secondary retail offer was conducted at an issue price of A$0.26 per share, matching the price established for the institutional placement participants. The share purchase plan officially closed on 7 July 2026. Investors and other market participants can expect the final results of this retail offering to be announced by the company on 13 July 2026. Following the settlement of these shares, the company plans to provide further procedural documentation regarding the share issuance to the relevant market authorities to complete the administrative requirements of the transaction.

Read the full announcement: Completion of Tranche 2 Placement