PERTH (miningweekly.com) – Rare earths producer Northern Minerals will raise A$20-million through the placement of 400-million shares, priced at 5c each.
The company on Monday said that it had entered into multiple subscription agreements with a number of sophisticated investors.
The shares will be placed in three tranches, with the first consisting of 200-million to raise an initial A$10-million under Northern Minerals’ existing placement capacity.
The second tranche of 100-million shares, to raise a further A$5-million, will be issued by the end of April, subject to shareholder approval, while the final tranche to raise a further A$5-million will be issued by the end of May, also subject to shareholder approval.
“The placement will allow us to ramp up exploration at the high-grade Dazzler and Iceman prospects and strengthen the balance sheet for working capital purposes,” said Northern Minerals MD George Bauk.
“The support for the placement was excellent, with many parties now having a better understanding of the important role of heavy rare earths in the electric vehicle sector.”
Meanwhile, Bauk noted that the Northern Minerals board is also contemplating a possible one-for-five entitlement offer, which will also be priced at 5c a share.