Northern Minerals Ltd.: Final payment completes $26.6m rights issue
September 16, 2013 (Source: Northern Minerals) — Highlights:
- Final rights issue installment of $8.1 million received from underwriter, Australia Conglin International Investment Group (ACIIG)
- Total of $26.6m now received from rights issue – more than $30 million raised in 2013
- New shares and options issued to rights issue subscribers, and to ACIIG
Northern Minerals (ASX: NTU) is pleased to announce it has received the final payment for the fully underwritten rights issue, which has successfully raised a total of $26.6 million.
The Company received net funds of $8.1 million from underwriter, ACIIG, which completes the rights issue. The final payment is net of all costs of underwriting the entire rights issue.
The payment completes the $26.6 million rights issue, and means the Company has now raised more than $30 million in 2013 to drive the development of its Browns Range Heavy Rare Earth Element (HRE) project (the “Project”).
Northern Minerals Managing Director George Bauk said: “This is a major milestone, and these additional funds put the Company in a strong cash position, and means we are fully funded for our immediate resource and project development programs.”
“We have now completed two key elements of the total $58 million funding package we announced in February, and will be focusing on completing the additional funding initiatives to raise a further $28 million to progress the project through to decision to invest,” he said.
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Under the terms of the Rights Issue, (see Third Supplementary Prospectus issued on 10 July 2013), following receipt of payment ACIIG will now be issued with 47,183,287 shares and 23,591,644 options. The total number of new securities issued to ACIIG in the Rights Issue is 132,183,287 shares and 66,091,644 options.
Shareholders who participated in the Rights Issue have been issued their allocations, which constitutes a total of 996 939 shares and 498,483 options.
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 prospects 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 and metallurgical programs in 2012, the Company has delivered its maiden JORC resource, 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 project.