Shenghe and Arafura Execute MOU for Development of International Rare Earths Business
September 10, 2013 (Source: Arafura Resources Limited) — Highlights:
- Shenghe and Arafura have executed an MOU for the objective of developing the Arafura owned Nolans Rare Earths Project;
- Shenghe Resources to utilise the development of the Nolans Rare Earths Project as an opportunity for the international expansion of its existing Chinese based Rare Earths business.
Australian rare earths company Arafura Resources Limited (ASX: ARU) (“Arafura”) and Shenghe Resources Holding CO.LTD (600392.SS) (“Shenghe”) a Chinese based Rare Earths Producer are pleased to announce the signing of a Memorandum of Understanding (MOU).
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Under the terms of the MOU both parties will work together to achieve the following objectives:
- Shenghe to conduct scheduled reviews of the Nolans Project definitive feasibility study which is being prepared by Arafura;
- Upon successful completion of the definitive feasibility by Arafura, Shenghe will be provided with the opportunity to co‐fund the development of the Nolans Project;
- Arafura and Shenghe to examine opportunities for the sale and distribution of Rare
Earth products to Shenghe’s existing customers;
- Arafura and Shenghe to continue to look for opportunities and initiatives to add to and build the strategic partnership to develop an international Rare Earths business; and
- Negotiate a Framework Agreement to formalise the arrangements for the establishment of a long term strategic partnership.
Shenghe, based in Chengdu in the Sichuan Province, is an industry leader in Rare Earths production and technology development. Shenghe is a Shanghai Stock Exchange listed public company and operates a Rare Earths processing plant in Leshan City and markets specialty Rare Earth products to international and Chinese based customers.
Arafura is an Australian based company with a Rare Earths project based near Alice Springs in the Northern Territory. Arafura believes the execution of the MOU with Shenghe will provide significant momentum assisting it to achieve its goal of making substantial reductions in the Nolans Project capital costs and operating costs. With the ongoing support of Shenghe and its other strategic partners Arafura is confident it can advance the Nolans Project towards sustainable financing and commercialisation.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>