Home / Sector / Materials Shares / Why have shares in ASX 300 rare earths miner Arafura just been halted?

Why have shares in ASX 300 rare earths miner Arafura just been halted?

Why is this explorer in a trading halt?

Posted by
Monica O'Shea
Monica is a journalist with experience working for Daily Mail Australia in Sydney and the Port Pirie Recorder and the Flinders News in South Australia. Monica completed a journalism cadetship in 2013. She also hold a B.Science (Biotechnology) with Honours from the University of Adelaide. Monica has worked in government at the local, state and federal level. Monica has a keen interest in finance and the share market and enjoys exploring the highs and lows. When not writing for Motley Fool Australia, Monica enjoys travel, sport, music, and likes to play the violin in her spare time.
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Key points
  • This ASX 300 rare earths explorer is in a trading halt 
  • The company is exploring neodymium and praseodymium (NdPr)
  • NdPr is used in electric vehicles and wind turbines 

The Arafura Rare Earths Ltd (ASX: ARU) share price is on hold today.

Arafura shares were put on ice before market open today and are worth 30.5 cents a piece. In today's trade, the S&P/ASX 200 Index (ASX: XJO) is down 0.17%.

Let's take a look at what this ASX rare earths explorer reported to the market this morning.

Woman with her hand out, symbolising a trading halt.

Image source: Getty Images

Trading halt

Arafura is exploring the neodymium and praseodymium (NdPr) rare earths project in the Northern Territory.

In today's news, Arafura has requested a trading halt pending an announcement.

While the details of this announcement are not certain, Arafura has provided a potential clue in its announcement to the ASX today.

Arafura said the news relates to an "offtake agreement". The company has requested the trading halt remains until this announcement or the start of trading on 8 November.

Arafura said:

The company is seeking a trading halt pending an announcement to the market regarding execution of a binding offtake agreement (MoU).

Arafura recently presented at a rare earths conference at the Australian National University.

The company said Nolans is the only NdPR project in Australia that plans to "mine and process ore to oxide at a single site".

The wind turbine and electric vehicle (EV) markets are "competing for NdPR", according to Arafura.

The company already has MOU's with Hyundai Motor Corporation and GE Renewable Energy.

Arafura share price snapshot

The Arafura share price has surged almost 36% in the past year, while it has leapt 45% year to date.

In the past month, Arafura shares slipped 1.61%.

This ASX 300 rare earths has a market capitalisation of about $526.9 million based on the current share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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