Offer of Shares under Share Purchase Plan

February 24, 2o12 (Source: Arafura) — The Directors of  Arafura Resources Limited (‘Company’)  are pleased to offer shareholders the opportunity to participate in a Share Purchase Plan (‘Plan’).

Under the Plan eligible shareholders will be given the opportunity to subscribe for up to A$15,000 of ordinary shares in the Company at a 10% discount to the five-day volume weighted average price (VWAP) leading up to and including the closing date of the SPP (SPP Pricing Period).

The Plan will be capped at A$12 million and the Company will scale back applications if they exceed A$12 million in aggregate.

The Plan provides eligible shareholders with the opportunity to purchase shares at a 10%discount to the VWAP for the Company’s shares over the 5 trading days to the close of trade on  9 March 2012.   Furthermore no brokerage  or other transaction costs will be payable by shareholders in respect of an application for, or issue of, shares under the Plan.

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The Plan is not underwritten.

Participation in the Plan is open to all eligible shareholders who, at 5.00 pm (Perth time) on  21 February  2012, are holders of ordinary shares in  the Company and whose registered address is in Australia or in New Zealand.

The directors believe that the Capital Raising is an essential step in  the Company’sgrowth strategy.

Funds raised will be used to fund ongoing working capital requirements and to progress the Nolans project through further engineering studies which include environmental, mine planning and process flowsheet refinement.

Participation in the Plan is entirely optional and voluntary.

Enclosed are the terms and conditions of the Plan. I urge you to read it in its entirety before deciding whether to apply for shares under the Plan. The offer will close at 5.00pm (Perth time) on 9 March 2012.

To participate in the offer, please:

(a) return your Application Form, together with your cheque drawn on an Australian bank in Australian dollars; or

(b) return your Application Form and pay via  B-Pay in accordance with the instructions on the Application Form,

so that it is received no later than  5.00 pm (Perth time) on  9 March  2012

If you are a “custodian” you may be required to submit a custodian certificate to the Company in order to participate on behalf of any beneficiaries for which you are custodian.  Please see the terms and conditions of the Plan.

Should you require new forms or further information on the process for participating in the offer please contact the Share Registry on (+61) (08) 9315 2333.

The offer under the Plan does not take into account the individual investment objectives, financial situation or particular needs of each eligible shareholder. You should consider seeking independent financial and taxation advice before making a decision as to whether or not to accept the offer.

On behalf of the Board of Directors, I invite you to consider this opportunity. 


  1. Wonderful. They just screwed over all shareholders whose registered address is not in Australia or in New Zealand. Dilutive rights offering they can’t participate in.

  2. Honestly, this is the kind of thing that shyed me from holding Aussie stocks. As i recall, there were some other issues about monetary conversion, as well as being summarily treated as an “outsider”. Apparently this is not a concern for the North American non Aussie investors. Nevertheless, Arafura and Alkane were my Aussie favorites, had I decided to change my mind.

  3. I don’t hold any Australian stocks now, but got screwed over in exactly the same way several years ago on an Australian stock, purchased by a U.S. citizen/resident (me) as an ADR on NASDAQ. I think only Australians were eligible, not even New Zealanders on that one.

  4. It is usually the United States Federal Regulators that prohibit American citizens
    from participating in certain foreign stock transactions/investments not the
    foreign corporations.
    This was the case last year when Lynas made the offer to early stockholders
    to excercise rights to purchase 5000AUD of stock at the same price as the
    Japanese consortium paid…Lynas “could not” offer this to US Citizens.
    Americans are losing freedoms and the Government is directly or indirectly
    placing barriers to US citizens and residents wishing to invest internationally or move their money out of the USD.
    I could write pages on this subject as I am really irate…and looking for “legitimate” work arounds as the USD is headed for a gigantic debasement.
    As an American try opening a “retail” bank account in a Foreign Country if you are not a resident of that country.Foreign Financial Institutions do not want to deal with Americans due to all the regulatory and administration placed on US citizens holding assets abroad.

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