PERTH (miningweekly.com) – Rare earths developer Northern Minerals expects to receive the remaining A$18-million from a A$30-million equity investment from Huatai Mining before the end of the year.
The ASX-listed company told shareholders on Tuesday that Huatai’s parent company, Shandong Taizhong Energy, had offered Northern Minerals a guarantee of funding completion and confirmed that Huatai and Taizhong would continue their best endeavours to complete the final tranche subscription as soon as funding was available.
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.
Northern Minerals is currently developing a pilot plant at the Browns Range project, including mine planning, drilling, water supply, engineering design and an extension to the accommodation camp.
The 60 000 t/y pilot test plant will run for a period of 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.