PERTH (miningweekly.com) – A A$27-million funding package to progress the development of the Browns Range pilot plant project, in Western Australia, has been delayed, ASX-listed Northern Minerals has reported.
The rare earths developer in October announced a A$25-million subscription agreement with NRE Industrial Group, along with a A$2-million subscription agreement with a private sophisticated investor.
The NRE subscription agreement would comprise four tranches, consisting of a total of 240.4-million shares priced at between 9c and 11c a share.
The first A$1-million placement was due to be received at the end of October, but was delayed due to regulatory approvals in China, Northern Minerals reported on Thursday, with the company saying that this delay has caused further delays of the A$2-million placement with the private investor.
“We are still working on the approvals, although there are technical difficulties, but we are still going to finish the subscription as soon as possible,” NRE said this week.
Northern Minerals told shareholders that the company would continue to work with NRE to finalise this tranche and continue with the balance of the A$27-million funding package.
The pilot plant is expected to produce 573 000 kg of mixed heavy rare earth carbonate containing terbium and dysprosium as revenue products, over a three-year period.
The plant was commissioned in June this year and produced its first rare earth carbonate in October.