EDITOR: | February 22nd, 2013

Northern Minerals Share Placement Raises $3.76m – Completes First Phase of Major Funding Package

| February 22, 2013 | No Comments

Northern-MineralsFebruary 22, 2013 (Source: Northen Minerals) –Northern Minerals (ASX: NTU) is pleased to announce it has today completed a share placement to raise $3.76 million, as the first stage of its recently announced $58 million funding package.

The Company announced the major funding initiative earlier this month. The package includes four components which, once completed, will take Northern Minerals through to completion of Feasibility Study at its Browns Range Heavy Rare Earth (HRE) project in northern Australia.

The placement involved a total of 18.8 million fully paid, ordinary shares at an issue price of 20 cents to professional and sophisticated investors, including the Company’s largest shareholder Mr Conglin Yue. The placement has raised a total of $3.76m.

The Placement was made in accordance within the Company’s available 15% capacity pursuant to ASX Listing Rule 7.1 and additional 10% placement capacity pursuant to ASX Listing Rule 7.1A. The additional shares to Mr Conglin Yue will mean he maintains his interest in Northern Minerals at 19.9%.

Northern Minerals Managing Director George Bauk said the funds from the placement will be committed to continuing development of the Company’s Browns Range HRE project, and for working capital.

“The funds will be put to work immediately to continue our program of work at Browns Range. This includes drilling and geotechnical work to expand our initial HRE resource, and ongoing beneficiation and flow-sheet development to follow the success of our hydrometallurgical test-work to date,” Mr Bauk said.

“The placement represents just the first stage of our $58 million funding solution, which once completed, will provide us with the security of funding right through the next two yearIn addition to the placement, the funding package includes the following components:

  • Sale of a 16% stake in the Browns Range project to Australia Conglin International Investment Group Pty Ltd to raise $26 million, with an off-take agreement for an additional 20% of Browns Range production on commercial terms – subject to shareholder approval and terms of Toro JV.
  • Sale of the Northern Minerals Gardiner-Tanami gold assets to Australia Conglin International Investment Group Pty Ltd to raise an initial $2 million – subject to shareholder approval and terms of Manhattan JV.
  • A rights issue, fully underwritten by Australia Conglin International Investment Group, for approximately $26.6m

The rights issue will provide shareholders the opportunity to participate in the funding solution, and a Prospectus is expected to be issued to all shareholders shortly.

The rights issue will consist of one new share for every two shares held at a price of 20 cents (133,180,226 shares); and one option for every two new shares issued at an exercise price of 30 cents expiring 31 March 2015 (66,590,113 options).

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, Heavy Rare Earth Elements (HREE), in xenotime mineralisation. In particular, the mineralisation includes high levels of dysprosium and yttrium, which are in short supply globally. Following outstanding results from its drilling and metallurgical programs, the Company has delivered its maiden JORC resource at the end of 2012, advancing Browns Range toward production, using a relatively simple and low cost processing flow sheet to produce a high grade concentrate. Northern Minerals also has a HREE exploration program underway at the geologically similar John Galt project.

Northern Minerals also holds a number of non-REE assets, including the large and prospective Gardiner-Tanami project and Gardner Range JV project on the WA-NT border. The projects are located within the world-class Tanami-Arunta gold region and have a number of early stage gold targets.s of our business plan.”



InvestorIntel is a trusted source of reliable information at the forefront of emerging markets that brings investment opportunities to discerning investors.

Copyright © 2019 InvestorIntel Corp. All rights reserved. More & Disclaimer »

Leave a Reply

Your email address will not be published. Required fields are marked *