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Northern Minerals secures A$27m from Browns plant

15th October 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Heavy rare earths producer Northern Minerals has secured a further A$27-million in funding to progress the development of the Browns Range pilot plant, in Western Australia, and to accelerate enhancement initiatives at the project.

The company has entered into a subscription agreement with NRE Industrial Group to raise A$25-million.

The subscription agreement would comprise four tranches, consisting of a total of 240.4-million shares priced at between 9c and 11c a share.

Both the first and the second tranches, consisting of some 11.11-million shares each, will be issued under Northern Minerals' existing capacity, with tranches three and four subject to shareholder approval.

Assuming that all four tranches are successfully placed, NRE would hold a 17.2% interest in Northern Minerals.

Meanwhile, Northern Minerals has also executed a A$2-million subscription agreement with a private sophisticated investor, which was taking up 22.22-million shares in the company, priced at 9c each.

Northern Minerals MD and CEO George Bauk said on Monday that with Browns Range now in the commissioning phase and starting the production of mixed rare earth carbonates, the company was investigating ways to enhance the project to deliver better outcomes for shareholders.

Northern Minerals had earlier flagged the potential to increase production from its Browns Range pilot plant project at a capital cost of A$4-million through the addition of an ore sorter.

Edited by Creamer Media Reporter

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