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.
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.