- Northern Minerals (NTU) has entered subscription agreements with various investors to raise $20 million via a private placement
- More than 408 million subscription shares were issued to sophisticated and institutional investors at 4.9 cents – a 5.8 per cent discount to the company’s closing price of 5.2 cents on February 11
- In addition, participants will receive one free attaching option for every two shares subscribed for, exercisable at 7.4 cents with expiry three years from issue
- NTU will use the funds to undertake exploration at its projects, carry-out a feasibility study, and test its ore sorter
- Shares in Northern Minerals are up 1.92 per cent and are trading at 5.3 cents
Northern Minerals (NTU) has entered subscription agreements with various investors to raise $20 million via a private placement.
The heavy rare earths producer entered a trading halt on February 12 but did not disclose how much it intended to raise.
More than 408 million subscription shares were issued to sophisticated and institutional investors at 4.9 cents.
This price represents a 5.8 per cent discount to Northern Minerals’ closing price of 5.2 cents on February 11 and a 6.1 per cent discount to the 10-day volume-weighted average price.
In addition, participants will receive one free attaching option for every two shares subscribed for, exercisable at 7.4 cents with and expiring three years from issue.
Northern Minerals will use the funds to undertake exploration at its projects, carry out a feasibility study, and test its ore sorter.
“Northern Minerals has committed to a priority work program for 2021, focussed on fast-tracking our pathway to achieving commercial production of a marketable heavy rare earths concentrate in response to emerging market demand for such a product,” CEO Mark Tory commented.
“To succeed with this approach, we will assess the technical and financial feasibility of constructing a standalone commercial-scale benefaction plant at Browns Range as well as planning a full-scale mining operation to feed the plant,” he said.
“The additional funds we have raised through this $20 million placement will provide us with the added flexibility to both fast-track feasibility work on the benefaction plant and also ramp-up our resource expansion drilling with the objective of increasing the project’s life of mine,” he added.
Shares in Northern Minerals are up 1.92 per cent and are trading at 5.3 cents at 1:22 pm AEDT.