Ann: Arafura launches A$20m placement and A$7m SPP, page-22

Rather than speculating further, I went straight to source to clarify the requirement. ARU response below.

This raise was to make sure that we had runway well past the final equity raise so that investors aren’t worried about our funding when we are engaging them. This is all setting ourselves up to pull off the final equity.

We cant use the full $42M as have to keep a provision that covers our liabilities.

As you know, we have halved our cash flow and this will remain the case. Any funds not used from this raise (which we expect to be the majority), will go into building the project.