Arafura Resources Ltd. announced an A$11.5 million accelerated nonrenounceable entitlement offer on a 1-for-4 basis to back the development of its Nolans Bore neodymium-praseodymium project in Australia.

The company priced the offer, which is not underwritten, at 8 Australian cents per share and expected to issue about 143,938,988 new shares. Arafura noted the price is a 17.5% discount to its closing share price before it announced the offer.

The offer will open to institutional shareholders Aug. 13-14 and to retail shareholders Aug. 20-29. The record date is Aug. 15.

The junior will use the proceeds to fund feasibility work at Nolans, where it recently received environmental approval.