JOHANNESBURG (miningweekly.com) – Rare earths focused Northern Minerals, which is advancing the Browns Range project, in Western Australia, expects to raise up to A$2.75-million by selling a package of exploration licences in the Tanami region of the Northern Territory.
Gold miner Northern Star will buy the exploration licences for A$1.25-million in cash and has agreed to pay a further A$1.5-million in cash upon establishing a one-million-ounce Joint Ore Reserve Committee-compliant inferred mineral resource on the tenements.
The package includes 12 granted exploration licences, covering 3 350 km2 and a further 3 360 km2, subject to exploration licence applications.
Northern Minerals will retain the rare-earth rights on all grounds, while Northern Star holds the rights to all other minerals. Northern Star will also gain the gold exploration rights at Northern Minerals’ Boulder Ridge rare-earth project in the Tamani region.
In addition, Northern Minerals will acquire the rights to rare-earth elements in four exploration licences, which Northern Star will acquire from Toro Energy.
Northern Minerals MD George Bauk said selling the Tanami tenements will provide the company with access to short-term working capital to continue the development and financing of a pilot plant at its Browns Range plant.
Completion of the transaction is subject to Ministerial consent and approval by other third parties.