Arafura Rare Earths inks agreement for neodymium-praseodymium oxide supply

• Arafura Rare Earths signed a binding term sheet with an Indian industrial group to supply 500tpa of neodymium-praseodymium oxide.
• The company's funding strategy is nearing completion as lenders process final credit approvals.
• The agreement supports development plans ahead of targeted construction commencement in September.

Arafura Rare Earths (ASX:ARU) executed a binding term sheet to supply 500tpa of neodymium-praseodymium oxide.

This agreement follows the final investment decision for the Nolans Project announced on May 21.

Pricing for the supply over the initial five-year period will be based on a seaborne-traded index.

The company stated that lenders are processing final credit approvals ahead of executing project finance documentation.

Following the announcement, the Arafura share price was unchanged at $0.16.

Site-based camp facilities, water, and power infrastructure have already been completed at the project location.

Construction at the site remains on track to commence in September subject to remaining milestones.