Arafura advances Nolans readiness with land agreement, camp acquisition and HRE technology review Proactive uses images sourced from Shutterstock

Arafura Rare Earths Ltd (ASX:ARU, OTC:ARAFF, FRA:REB) has progressed execution readiness for its Nolans rare earths project in the Northern Territory, announcing a land access compensation agreement, acquisition of camp infrastructure and a partnership to review alternative heavy rare earth separation technologies.

The company’s subsidiary, Arafura Nolans Project Pty Ltd, has entered into a compensation deed with ATAYF Pastoralists Pty Ltd, the holder of the pastoral lease covering the Nolans project site. As part of the agreement, ATAYF will receive A$4 million in Arafura shares and will also invest A$1.2 million in cash in the company.

The shares will be issued at A$0.22 per share, representing a 10% discount to the 20-day volume-weighted average price, and will be subject to a 36-month voluntary escrow period.

Infrastructure acquisition and processing review support project readiness

The agreement formalises access and compensation arrangements required under the Northern Territory Minerals Titles Act and establishes a framework for collaboration between Arafura and the pastoral leaseholder. The parties have also identified opportunities for cooperation on renewable power supply, shared infrastructure and services, supporting both the Nolans project and local pastoral operations.

Separately, Arafura has agreed to acquire an existing 200-plus room camp at Nolans from NT Link for A$6.75 million, subject to customary conditions.

The acquisition is expected to enable early mobilisation once a final investment decision is made, allowing construction activities to commence quickly and giving the company greater control over scheduling during the ramp-up phase. Ownership of the camp is also expected to remove long-term rental costs for facilities required to support ongoing operations at the site.

Arafura partners with CleanTeq Water

Arafura has also partnered with Clean TeQ Water Ltd (ASX:CNQ) to review alternative rare earth separation technologies targeting the further processing of heavy rare earths (HRE) to a heavy rare earth oxide product.

The review will focus on ion exchange and separation test work designed to evaluate opportunities to enhance the Nolans flowsheet and potentially support the production of a SEG/HRE oxide product, responding to emerging demand from Europe and the United States for strategically important heavy rare earth elements.

While the technical review may provide opportunities to optimise processing, Arafura said its Phase 1 development strategy for the Nolans project remains unchanged.

The program will run alongside existing metallurgical test work aimed at recovering additional heavy rare earth elements — including dysprosium (Dy) and terbium (Tb) — from acid purification liquor, with the goal of increasing overall production of these strategic materials.