Northern Minerals ASX Announcements 30 April 2013 – Cashflow and Quarterly Activities Report
April 30, 2013 (Source: Northern Minerals) — Northern Minerals ASX Announcements 30 April 2013 – Cashflow and Quarterly Activities Report
Browns Range Heavy Rare Earths Project
- Major 2013 drilling program underway, with 20,000m targeting an expansion of the initial JORC resource.
- Metallurgical studies confirm ability to produce a high value, 92% mixed rare earth oxide – which enhances the marketing options and will command a premium in the market.
- Location study establishes that the Browns Range site is the optimum location for the hydrometallurgical plant.
- Environmental studies continuing, with follow up surveys of subterranean and short range endemic fauna completed this quarter.
- Submission of the Referral document to the Environmental Protection Authority is due to be submitted in the second quarter, with series of community meetings in May.
- New airborne survey results identify geophysical anomalies (possible heavy rare earth targets) on recently granted tenements on the Northern Territory side of the Browns Range Dome.
- $58 million funding package announced (subject to shareholder approval), providing certainty and security for the future of the Browns Range project, which comprises: – Sale of a 16% stake in Browns Range to Australia Conglin International Investment Group Pty Ltd (ACIIG) to raise $26 million, with an offtake agreement for an additional 20% of Browns Range production on commercial terms, subject to shareholder approval – Sale of the Northern Minerals Gardiner-Tanami gold assets to ACIIG to raise an initial $2 million, subject to shareholder approval – A placement of 18,800,000 shares to sophisticated investors at 20c a share to raise $3.76 million which has been completed o A rights issue, fully underwritten by ACIIG, to raise approximately $26.5m and currently scheduled to close on 17 May 2013
- Short term funding secured, with additional $4m interest free loan to commence drilling program, while long term funding package completed.
- Substantial interest in Browns Range at Asian Metal International Rare Earths Conference, Chengdu, China with high-profile consumers from the wind turbine and lighting industries informing attendees that additional supplies of dysprosium and yttrium are critical for their sustainable development.
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