PERTH (miningweekly.com) – Rare earths developer Northern Minerals has warned shareholders that the final investment decision on its Browns Range project could be delayed, citing issues with its Chinese funding partner Huatai Mining.
Northern Minerals in August entered into a A$30-million equity funding agreement with Huatai, under which the company would issue 230-million shares, at an average price of 13c each.
However, the ASX-listed company said on Wednesday that Huatai had failed to complete the subscription agreement by the agreed extension date of January 31, and, to date, had only made payments totalling A$19.5-million, accounting for 152.2-million shares, or a 22.59% interest, in Northern Minerals.
Northern Minerals noted in its quarterly report for the three months to December that while important precommitment works for the development of the Browns Range pilot plant operation have continued, including mine planning, drilling, and water supply and engineering design, the Huatai funding delay could have the potential to push back the final investment decision to the end of the March quarter.
The 60 000 t/y pilot test plant will run for three years and will consist of 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.