PERTH (miningweekly.com) – Heavy rare earths producer Northern Minerals is looking to raise A$20-million through a share placement to China’s Baogang Group Investment.
The company will issue more than 322.58-million shares, at a price of 6.2c each, to raise the funds, with the placement subject to shareholder approval and Chinese and Australian regulatory approvals.
Baogang is a wholly-owned subsidiary of a Chinese State-owned entity which owns steel mills in China.
Northern Minerals on Thursday said that funds from the share placement will be issued to progress project enhancement initiatives at the Browns Range project, in Western Australia, which will include the evaluation of ore sorting and product separation, as well as increased exploration.
Shareholders are expected to vote on the placement at the company’s annual general meeting, scheduled for November.