The NT Independent is providing an update of resource news from across the Northern Territory. Highlights this week include Perth-based Eclipse Metals divesting Territory assets to Oz, Santos continuing cracking on with the Barossa project, Ragusa concludes the first phase drilling of its lithium project and Hancock acquiring a 10 per cent share in Arafura Rare Earth’s Nolan’s project.

Hancock buys 10 per cent holdings in Arafura

Gina Rinehart’s Hancock Prospecting has pledged to invest $60 million in Arafura Rare Earths (AUR). AUR has offered around 326 million new shares, valued at $121 million to be used to further fund the development of its Nolans project in the Territory. The new shares will be offered in two trenches at 37 cents per share.

The additional funds will accelerate the Nolans project development schedule and will go towards finishing an early contractor involvement (ECI) phase, starting fabrication before main plant construction and early works building, the company said.

“The widespread interest in this placement reflects the increasing global awareness of the importance of our NdPr oxide product within the supply chains essential to the energy transition,” AUR managing director Gavin Lockyer said.

“Nolans is important to all countries that are seeking diversified and robust critical material supply chains as they strive to achieve their net-zero emissions target.”

AUR also launched a share purchase plan to raise an additional $12 million at the same issue price as the placement. The SPP will open on December 15 and close on December 30.

Santos to continue cracking on with the Barossa project 

Giant oil and gas producer Santos pledged to press on with the controversial Barossa gas project even with a Federal Court setback which dismissed Santos’ appeal against its September decision that had overturned the gas company’s environmental approval for the $4.7 billion project located around 300 km northwest of Darwin.

Traditional owners on the Tiwi Islands had claimed Santos had not appropriately consulted ahead of the project’s approval by the National Offshore Petroleum and Safety Environmental Management Authority.

“Santos has a strong track record of working constructively and collaboratively with Traditional Owners,” managing director and chief executive Kevin Gallagher said.

“Santos has always sought to meet its consultation responsibilities and is continuing the process of revising the Drilling Environment Plan to address the matters contained in the judgement.”

Mr Gallagher added that, “Santos will now proceed with applications for all remaining approvals following the guidance provided by the Court. As a result, Santos does not anticipate any material cost or schedule impact, and the first gas from the Barossa Gas Project remains on track to be delivered in the first half of 2025.”

Ragusa finishes first phase drilling of lithium project

Ragusa Minerals (RAS) has completed the first phase of drilling of its lithium project in the Territory after boring 18 reverse circulation drill holes, 12 of which intersected pegmatite. Ragusa has already sent select samples for assaying. The company said that preliminary observations were encouraging given the scale of the pegmatite zones.

“The completion of the initial exploration program is another positive step that puts Ragusa in a strong position to rapidly accelerate the development of our project within a proven high-quality lithium district in a tier one jurisdiction close to major infrastructure at a time of record lithium prices,” Ragusa chairman Jerko Zuvela said.

Mr Zuvela added several drill sites were not accessible during the initial phase of work programs but the company intends to continue drilling works in the stated areas next Dry season. Geophysical surveys are planned across target areas to assist in planning for the next phase of exploration.

Perth-based Eclipse Metals rids Territory assets to Oz

Eclipse Metals (EPM) has divested its holdings located in the Territory uranium tenements including those in the Ngalia Basin prospects and the Liverpool project to Oz Yellow Uranium. EPM said that the sale will now allow it to concentrate on its mineral resources in Greenland. Eclipse Metals will however keep its connection to the Territory through a share issue when Oz Yellow has finished its planned ASX listing.

OZ Yellow intends to conduct an IPO to raise a minimum of $20 million to facilitate the process, after which it will distribute 60 per cent of its fully-paid ordinary shares to Eclipse. Half of this amount will be dispersed to Eclipse stakeholders according to their existing Eclipse shareholding. The offering will come with a $2 million top-up offer enabling Eclipse investors to obtain more Oz Yellow shares above their allocation limit.

“As the projects in our portfolio continue to advance, it is important that we ensure our money and time are committed to those we believe will have the best chance of returning value for our shareholders,” Eclipse executive chairman Carl Popal said.

“By divesting these assets into Oz Yellow, Eclipse will be able to focus its energies towards our key projects in Australia and Greenland while retaining significant exposure to a company that will be solely focused on the development of an exciting suite of uranium assets in the Northern Territory.”

The Ngalia Basin—about 300 km west-northwest from Alice Springs—is deemed highly prospective for sandstone and paleochannel-style uranium-vanadium mineralisation. EPM holds two granted exploration licences and six licence applications over a total area of 4,773 square kilometres. With the Liverpool project, EPM is focused on the Devil’s Elbow, Terrace and Ferricrete uranium prospects.