Arafura Rare Earths signs binding supply agreement

• Arafura Rare Earths executed a binding agreement with a global trading company to supply up to 850 tonnes per annum of NdPr oxide.
• Following the announcement, the Arafura Rare Earths share price remained unchanged at $0.16.
• The deal supports the U.S. government's Project Vault initiative to build resilient supply chains for American manufacturing.

Arafura Rare Earths (ASX:ARU) signed a binding offtake agreement to supply up to 850 tonnes per annum of neodymium-praseodymium oxide to a major global trading company.

This agreement expands on a binding term sheet announced on May 13, which originally outlined a smaller annual volume of 500 tonnes.

The press release did not include an executive quote regarding the deal.

The contract covers a five-year term with a two-year extension option and pricing linked to independent global seaborne indexes.

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

The trader involved generates approximately US$10 billion in annual revenue across more than 20 global offices.

Arafura stated that it will keep the identities of future offtake partners confidential unless disclosure is required under market regulations.