PERTH (miningweekly.com) – Rare earths developer Northern Minerals will raise A$3-million through a private share placement to investor Liu Xiaohua.
The company would place 50-million ordinary shares, at a price of 6c each, under its existing placement capacity, meaning that shareholder approval would not be required.
Northern Minerals said on Friday that the funds raised from the issue would be used for ongoing working capital purposes.
Furthermore, Northern Minerals has entered into a consultancy agreement with Go & Company under which that firm would advise Northern Minerals on future equity raisings. The company will issue ten-million fully paid ordinary shares to Go & Company as partial consideration for entry into the consultancy agreement, once the A$3-million placement has been completed.
Northern Minerals in December of last year shipped its first heavy rare earth carbonate from the Browns Range pilot project, in Western Australia, after construction of the plant reached practical completion in October.
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.