arafura agm results and future, page-15

Good result on a down day for the ASX, will be very interesting to see where the rest of the RI goes. Get the feeling that the market will take note of ARAFURA's presence in the Rare Earths market, especially the MD's comments in todays announcement.

CHAIRMAN’S ADDRESS TO ANNUAL GENERAL MEETING
November 28, 2008
RETIRING CHAIRMAN OF ARAFURA RESOURCES SEES BRIGHT FUTURE
The retiring Chairman of Arafura Resources Limited (Arafura), Mr Mick Muir told shareholders at the Annual General Meeting held in Perth on 28/11/08 that their Company was very well placed to take advantage of the improving market conditions for the Nolans mix of commodities.
In Mr Muir`s upbeat address he stated “Recent announcements which detailed a 63% increase in resources at Nolans, savings in chemical consumption at the proposed treatment plant and the forming of relationships with Incitec Pivot and the Baotou Rare Earth Company have added to the confidence that Arafura will be a commercially successful long term participant in the rare earth and phosphate market”.
Mr Muir also commented on the recent rights issue which raised $7.5 million. He told the meeting that because of the global financial crisis the Company had anticipated a short-fall and has had discussions with institutions with the objective of placing this shortfall. “Some shareholders have indicated to the Company that they would like to participate in the placement of part of the shortfall and the Company is examining the eligibility criteria for this to proceed” the Chairman added.
In addition to funds raised from the rights issue, shareholders were reminded that the YA Global facility was available as a standby to support the continuation of the Financial Feasibility study.
Arafura is well aware of the state of the international finance market and capital raising may impact on the development program.
Mr Muir said that Arafura plans to have the financial feasibility study for Nolans completed by the end of 2009. “Because Nolans will be a very long life operation (more than 20 years) and has a multiple revenue stream with a complex metallurgical structure, final design parameters are still under consideration.” he added. “Our technical staff and consultants are focussed on delivering a first rate study which will facilitate the negotiations of funding for the treatment facility. Both the location and composition of the participants is still in the planning stage” he said.
“There has been much written about the Chinese moves to limit exports of rare earths in recent times. China has moved from the supplier to the world to the major internal consumer of rare earths. Whilst Arafura`s proposed alliance with Baotou will see some of our production going to China the majority is planned to fill some markets previously supplied by China plus the ever growing world demand” Mr Muir added.
The Baotou alliance will see Arafura gaining technical assistance for separation and refining of end products. Mr Muir added that feed-back from end users and processers was positive towards the proposed Baotou alliance as they recognised that such an alliance would give certainty about supply availability and product specification.
Mr Muir paid tribute to the inaugural Chairman Mr Peter Walker who passed away during the year. “Peter was an icon of the mining industry and set high standards of technical excellence and corporate governance which have served Arafura well in the past and will be continued to be observed in the future” Mr Muir added.

Bring on production, looks very likely early 2011. Hope the board are able to give more rights to existing shareholders, who may now want to take more

Time will tell. Always does