Gina Rinehart Increases Stake in Arafura Rare Earths
Gina Rinehart will be a cornerstone investor in Arafura Rare Earths' $525 million capital raise, solidifying her position in the critical minerals alliance between Australia and the United States.
Mrs Rinehart's company, Hancock Prospecting, will invest $125 million in the $475 million share placement, increasing her stake in Arafura from 9.4% to 15.7%.
- The equity raise includes a share purchase plan to raise $50 million.
- The entire raise will be at 28¢ per share, a 26% discount to Arafura's last closing price.
Rinehart is a major investor in several other ASX-listed rare earth companies, including Lynas Rare Earths, St George Mining, and Brazilian Rare Earths, as well as a significant shareholder in MP Materials, the US' main rare earths producer.
Arafura joins other rare earth hopefuls and producers in recent capital raises.
Author's summary: Gina Rinehart boosts stake in Arafura Rare Earths via capital raise.