The Conversation (0)
Arafura Resources (ASX:ARU) has signed a memorandum of understanding with a Chinese rare earths producer to develop the Nolans rare earth project in Australia’s Northern Territory.
Arafura Resources (ASX:ARU) has signed a memorandum of understanding with a Chinese rare earths producer to develop the Nolans rare earth project in Australia’s Northern Territory.
The MOU is with Shenghe Resources Holding CO.LTD (SHA:600392), a Shanghai-listed company.
As quoted in the press release, under the MOU:
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Shenghe to conduct scheduled reviews of the Nolans Project definitive feasibility study which is being prepared by Arafura;
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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;
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Arafura and Shenghe to examine opportunitiesforthe sale and distribution of Rare Earth products to Shenghe’s existing customers;
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Arafura and Shenghe to continue to look for opportunities and initiativesto add to and build the strategic partnership to develop an international Rare Earths business; and
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Negotiate a Framework Agreement to formalise the arrangements for the establishment of a long term strategic partnership.