March 20, 2014 (Source: Northern Minerals) — Highlights:
- $2.9 million received and shares issued for placement announced on 18 March 2014
- A subscription agreement for the remaining $2.4 million has been signed with major shareholder Australia Conglin International Investment Group (ACIIG) and is subject to shareholder approval
- General meeting of shareholders to approve the issue of shares to ACIIG expected to be held late April / early May
Northern Minerals (ASX:NTU) is pleased to advise it has received the first $2.9 million of the recently announced $5.3 million placement for its Browns Range Heavy Rare Earth (HRE) project in northern Western Australia.
Consequently, a total of 16,111,111 new shares, priced at $0.18 a share, have been issued to new investors.
The remaining $2.4 million will be provided by Northern Mineral’s major shareholder ACIIG as part of a signed share subscription agreement. This component of the capital raising remains subject to Northern Minerals shareholder approval at a meeting expected to be held in late April / early May following approval of the Notice of Meeting by regulators.
If approved by shareholders, ACIIG has agreed to purchase 13,450,561 shares, priced at $0.18 each, in order to maintain its current equity stake in Northern Minerals at 45.5%.
Funds raised from the placement will be used for activities to support approvals and the Browns Range feasibility study, which is due for completion by mid 2014.
About Northern Minerals:
Northern Minerals Limited (ASX: NTU) is focused on development of rare earth elements (REE), with a large and prospective landholding in Western Australia and the Northern Territory. The Company’s flagship project is Browns Range, where it has a number of projects with high value HRE in xenotime mineralisation. In particular, the mineralisation includes high levels of dysprosium and yttrium, which are in short supply globally and expected to be increasingly sought after as world economies stabilise and recent trends in urbanisation and technology diffusion, particularly in Asia, accelerate. Following outstanding results from its drilling programs the Company has delivered an expanded Mineral Resource estimate, and is advancing Browns Range toward production using a relatively simple and low cost processing flowsheet to produce a high grade mixed Rare Earth oxide. Northern Minerals also has a HRE exploration program underway at the geologically similar John Galt and Boulder Ridge projects. For more information www.northernminerals.com.au