Huatai Mining is part of Chinese coal trader Shandong Taizhong Energy.
The FIRB review was the only remaining condition precedent for the investment and Northern Minerals expects the first $9 million tranche by 28 October.
The second and third tranches of $9 million each are due before the end of November and December respectively.
$3 million was received by the company from Huatai Mining in August 2016.
The receipt of the first tranche will enable Northern Minerals to commence pre-commitment works for the development of the pilot plant at the Browns Range Project.
Through the development of the Browns Range Project, Northern Minerals aims to be the first significant producer of heavy rare earth (HRE) element dysprosium outside of China.
Dysprosium is an essential ingredient in the production of DyNdFeB (dysprosium neodymium iron-boron) magnets used in clean energy and high technology solutions.
George Bauk, managing director, commented “The execution of the Huatai Mining transaction is an important step in the development of Browns Range as a globally significant dysprosium operation.”
“Our project team has a clear objective and focus of delivering the pilot plant operation at Browns Range before the end of 2017.”
“This transaction keeps us on track for a final investment decision and construction commencement in early 2017.”
Northern Minerals’ share price has doubled during the past 3 months, last trading at $0.14.