Northern Minerals Ltd (ASX:NTU) has received an additional $800,000 in subscription funds as part of its $30 million placement which will fund ongoing development of the Browns Range Heavy Rare Earth Project in Western Australia.
The company has issued more than 12.3 million fully paid ordinary shares at 6.2 cents each to relevant subscribers, all of which have been issued with shareholder approval for the purposes of Listing Rule 7.1.
Balance expected soon
To date, about $25.5 million in funding has been received, before costs, and the balance of $4.5 million is expected to be raised by December 31, 2019.
Northern Minerals is working with the relevant subscribers and their representatives to progress payment of the remaining balance.
Pilot plant production
The company has started production of heavy rare earth carbonate from a pilot plant at the project in northern WA.
This pilot plant project will continue to assist the company evaluate the economic and technical feasibility of mining at Browns Range and will provide the opportunity to gain production experience and surety of supply for the offtake partner.
NTU continues to progress its ore sorting project and pilot plant initiatives associated with the project.
Separate private placement
As well as the placement, in August the company entered into an agreement to raise a separate $20 million through a private placement to Baogang Group Investment (Australia) Pty Ltd (BGIA).
This was subject to the parties obtaining shareholder approval, FIRB Approval and all regulatory approvals in the People’s Republic of China.
With shareholder approval received, BGIA expected to this month lodge an application with the FIRB.
NTU has also extended the maturity date for an additional year to December 31, 2020, for its $4 million convertible notes held by JHY.
Furthermore, the interest rate payable on the notes will be reduced to 10% from 16% from January 1, 2020.
Dysprosium used in magnets
The Browns Range project is 100% owned by Northern Minerals and has several deposits and prospects containing high-value dysprosium and other HREs, hosted in xenotime mineralisation.
Dysprosium is an essential ingredient in the production of DyNdFeB (dysprosium neodymium iron boron) magnets used in clean energy and high technology solutions.
Through the development of its flagship Browns Range project, Northern Minerals aims to build the operation into the first significant world producer of dysprosium outside of China.