EDITOR: | May 9th, 2013

Shareholder Rights Issue Update

| May 09, 2013 | No Comments

Northern-MineralsMay 9, 2013 (Source: Northern Minerals) —

Key Points:

Rights issue closing date extended from 17 May 2013 to 5 July 2013 (5pm Perth time)

New Shares and Options are quoted for ASX trading on a deferred settlement basis now 8 July 2013.

Issue of New Shares and Options and dispatch to shareholders of Holding Statements for New Shares and Options now 15 July 2013.

Shareholder vote to be held in late June 2013 in relation to the underwriting of the rights issue, to raise approximately $26.5 million, by Australian Conglin International Investment Group’s (ACIIG), an entity controlled by the Company’s largest shareholder, Mr Conglin Yue.

Sale of 16% stake in Browns Range Heavy Rare Earth Project and 100% of Gardiner-Tanami gold assets to ACIIG conditional on shareholder approval of underwriting of the rights issue

Northern Minerals’ Board unanimously recommends shareholders vote in favour of ACIIG underwriting proposal to provide Company with funding in difficult capital market conditions


On 1 February 2013 Northern Minerals (ASX:NTU) announced a proposed $58 million funding package that will provide the capital to complete the Feasibility Study for the Browns Range Heavy Rare Earth Project in Western Australia.

If the entire $58m package (including the rights issue) is completed, this will provide funding for the next two years of the Company’s current business plan, and is expected to take Browns Range to the point of decision to mine.

The rights issue component of the funding package offers shareholders one new share for every two shares held at a price of 20 cents and one option for every two new shares issued with an exercise price of 30 cents and a term of two years.

The rights issue will raise approximately $26.5 million, and is fully underwritten by Northern Minerals’ major shareholder, Australian Conglin International Investment Group (ACIIG), subject to shareholder approval.

In addition to the rights issue, ACIIG has agreed to purchase a 16% stake in Browns Range to raise $26 million, with an offtake agreement for an additional 20% of Browns Range production on commercial terms, subject to agreement on formal documentation and shareholder approval.

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