Northern Minerals Ltd (ASX:NTU) has boosted its cash coffers to the tune of approximately A$3.66 million through a well-supported share purchase plan (SPP) which closed this week.
The SPP was announced on October 26, 2022, and follows the company’s entry into a strategic partnership with Iluka Resources Limited.
Use of funds
Proceeds will be used to fund a definitive feasibility study (DFS) for the proposed mine and commercial-scale beneficiation plant at Browns Range Project in northern Western Australia and provide ongoing working capital.
The company will issue approximately 91.5 million shares at A$0.04 per share on December 1, 2022.
These shares will rank equally with existing shares from their date of issue and will begin normal trading on December 2, 2022.
About Browns Range
Northern Minerals owns 100% of the Browns Range Project which is uniquely rich in the heavy rare earth elements of dysprosium and terbium.
These are high-value elements as they are critical in the production of dysprosium neodymium iron-boron (DyNdFeB) magnets used in clean energy, military and high technology solutions.
Dysprosium and terbium are prized because their properties improve the durability of magnets by increasing their resistance to demagnetisation.
Wolverine focus
The Browns Range Project’s flagship deposit is Wolverine, which is thought to be the highest-grade dysprosium and terbium orebody in Australia.
The company is preparing to bring Wolverine into production with the objective of providing a reliable alternative source of dysprosium and terbium to production sourced from China.
To further its strategic objective, Northern Minerals will undertake a detailed feasibility study for a commercial-scale beneficiation plant to process Wolverine ore.