G+T has advised Export Finance Australia (EFA) on its cornerstone equity investment of USD100 million (Approximately $146 million) in Arafura Rare Earths Limited (ASX: ARU), supporting the development of its Nolans Rare Earths Project in the Northern Territory and strengthening Australia’s critical minerals capability.
EFA is the Australian Government’s export credit agency, providing finance to support Australian businesses and strategic projects that drive trade and investment.
The proposed investment is intended to support progression towards a final investment decision and forms part of a broader, multi-source financing framework involving government and international stakeholders. EFA’s equity investment is aligned with the Australian Government’s broader Critical Minerals Strategy.
The Nolans Project is expected to be one of Australia’s first integrated mine and processing operations producing rare earth oxides, strengthening and diversifying critical mineral supply chains and supporting the energy transition.
G+T advised EFA on all aspects of the investment, including structuring EFA’s cornerstone equity investment, negotiating the transaction documents including subscription and shareholder arrangements and navigating regulatory and governance considerations associated with EFA’s participation as a cornerstone investor.
The G+T team was led by partners Adam D’Andreti and Mark McAleer.
Adam D’Andreti commented:
Strategic capital is moving quickly into critical minerals as supply chains come under pressure globally. G+T is privileged to have advised EFA on this strategic equity investment which is EFA’s first into an ASX-listed company.
Mark McAleer added:
We are delighted to have been able to assist EFA with this strategically significant transaction, which reflects a broader global trend of government investment into critical minerals supply chains underpinned by the strategic imperative of ensuring supply chain resilience in respect of rare earth elements.
