The NT Independent is providing an update of resource news from across the Northern Territory. Highlights this week include Arafura signing up global financier as an additional mandated lead arranger for its Nolans project, Santos holding new consultation meetings on Barossa gas with Tiwi Islanders, and MetalsGrove finishing its heritage survey on its Arunta Project.

Santos to hold consultation meetings on Barossa gas next month

Santos will be holding three consecutive days of consultation meetings with Barossa gas stakeholders from Wurrumiyanga, Milikapiti and Pirlangimpi on the Tiwi Islands on February 6-10. The consultations follow the Federal Court’s upholding of the decision to stop Santos’ project after ruling that the company failed to adequately consult with local Indigenous people on the development.

Santos wants to develop the Barossa gas field and link it by pipeline to the Darwin LNG plant, believing that the project will likely create jobs in the Territory and put substantial royalty dollars into the economy.

“As part of the Barossa gas development project, we have worked with the Tiwi Land Council to schedule three community sessions for the Tiwi Islands in early February where the community are invited to attend to learn more about the project and upcoming plans, ask questions, and tell us how they want to be consulted on the project as it progresses,” Santos said.

Arafura sings up global financier for Nolans project

Arafura Rare Earths has appointed KfW IPEX-Bank as an additional mandated lead arranger (MLA) to set up and syndicate a debt financing facility for the company’s Nolans rare earths project. The bank will also act as a provider of finance solutions as well as Export Credit Agency (ECA), ensuring that Arafura’s AU$2.4 billion Nolans rare earths project in the Northern Territory will be up and running.

The bank’s directive with Arafura includes giving an evocative commitment to provide up to US$75 million of commercial debt financing to Nolans in addition to the funding being sought with two existing MLAs— Société Générale and National Australia Bank, which are tasked to arrange limited recourse debt finance of approximately US$510 million.

The Nolans project is Arafura’s 100 per cent-owned neodymium-praseodymium, or “NdPr” rare earths project, located 135km north of Alice Springs.

Arafura said the project’s definitive feasibility study increased its net present value by an impressive 68 per cent to $2.4 billion. The company has already obtained State and Federal government backing of up to $300 million in debt facilities, a $30 million manufacturing grant and signing a binding offtake agreement with Hyundai and Kia.

MetalsGrove concludes the survey of the Arunta project

MetalsGrove Mining Ltd (MGA) has completed a heritage survey on key tenements on its Arunta Project, north of Alice Springs.

MGA said the survey was done with the Aboriginal Areas Protection Authority (AAPA) covering the Bruce, Box Hole and Edwards Creek tenements. The project’s collection of rare earth elements (REE), gold and base metal targets will be the main focus of the company’s near-term exploration.

“We are pleased that the outcomes from the survey allow MetalsGrove to undertake our planned exploration programs across some advanced and highly prospective REE, gold and base metals targets at Arunta. Our work to date has already identified some compelling targets, with surface field mapping and rock chip sampling within the Bruce Prospect area highlighting multiple zones of mineralised pegmatites,” MGA managing director Sean Sivasamy said.

King River granted a research and development tax refund

King River Resources (KRR) has been awarded a total of $781,697 tax refund for its expenditure on Research & Development (R&D) activities undertaken during FY22. KRR plans to use the funds to augment its working capital.

KRR’s research activities for last year focused on processing methodology development and remains in line with requirements under the R&D scheme. The tax refund program facilitates the deductible cost of the research to be claimed as a tax rebate. The company’s cash position as of January this year stands at $1,845,928.

The company holds mineral assets in the tier 1 mining jurisdictions of the Territory, focusing on gold exploration across its Mt Remarkable and Tennant Creek projects. It also has mineral assets in Western Australia within the Kimberly Region.