News: Arafura inks Korean MOU

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Arafura Resources Limited (ASX:ARU) has today announced its partnering up with a major Korean multinational organisation.

Under the Memorandum of Understanding (MOU) the Australian rare earths developer and Korean company will work to cooperate on long-term business arrangements.

The MOU aims to formalise the sale and purchase agreement for rare earths from Arafura’s Nolans project in South Australia.

The agreement will also look into co-development of facilities, cooperative efforts to share technology and organisational capacity and funding arrangements to bring Nolans into production.

Arafura says a potential commercial deal could account for minimum sales of 3,000 tonnes per annum of rare earth products from the Nolans Project.

Shares in Arafura Resources closed 1.96 per cent lower on Friday to finish the week at $0.250.

Arafura Resources booked a net loss of $4.42 million in the first half of the 2012 financial year.