PERTH (miningweekly.com) – Rare earths developer Northern Minerals has announced plans to raise A$10-million in a share placement, after striking an underwriting agreement with Hong Kong-based AMC Wanhai Securities.
More than 74-million shares will be placed to a syndicate of investors and the underwriter, priced at 13.5c a share. The placement price represents a 4% premium to the company’s last closing price on March 17.
The share placement will be undertaken under the company’s placement capacity and will not require shareholder approval.
Northern Minerals MD and CEO George Bauk on Monday said the funding package was another key milestone towards making the Browns Range project a reality, as the company moved towards a final investment decision for the pilot plant project.
The 60 000 t/y pilot test plant will run for three years and will comprise an opencut mining operation. Ore will be processed through a beneficiation and hydrometallurgical pilot plant to produce 49 000 kg/y of dysprosium, and 590 000 kg/y of total rare earth oxides contained in a mixed rare earths carbonate.
Northern Minerals in February warned shareholders of a possible delay in the final investment decision on the pilot plant, citing issues with Chinese funding partner Huatai Mining, which has only paid A$19.5-million of a A$30-million agreed payment, in exchange for 230-million shares.