The Northern Australia Infrastructure Facility can confirm it has provided a without commitment Letter of Support to Arafura Resources Limited in relation to a potential senior debt facility that would form part of the funding package for the company’s Nolans Rare Earth Project, 135km north of Alice Springs in the Northern Territory, Australia.
The without commitment letter sets out the following indicative key terms for a potential senior debt facility:
- Facility amount of up to A$100 million;
- Up to 15-year facility term; and
- Conditions that are required for a financing of such a nature.
It should be stressed that NAIF has not committed any financing to the project at this stage by way of an Investment Decision. NAIF will now work with the company to conduct the required due diligence prior to the independent NAIF Board considering a potential Investment Decision.