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Northern Minerals (ASX:NTU) receives additional $1.6M from placement

Materials
ASX:NTU      MCAP $206.8M
12 December 2019 02:00 (AEST)

Northern Minerals (NTU) has received an additional $1.6 million on top of its $30 million placement announced earlier in the year.

This extra $1.6 million represents more than 25.8 million shares issued at a price of 6.2 cents apiece.

In July Northern Minerals announced the $30 million placement for its Browns Range Pilot Plant Project.

This placement follows Northern Minerals’ successfully completed 1 for 13 pro-rate non-renounceable entitlement offer that raised $6.94 million.

To date, $24.7 million of the $30 million has been raised and the remaining $5.3 million will aim to be raised by December 31.

The Browns Range heavy rare earths project is located near Halls Creek in the East Kimberly region of Western Australia and Northern Minerals hopes to build it into the first significant world producer of the rare earth element dysprosium, outside of China.

The Project covers a total area of 3595 square kilometres and is centred on the Browns Range Dome, a major geological feature covering approximately 1500 square kilometres.

The Dome is located in the northern Tanami region, which is situated within both Western Australia and the Northern Territory.

This landholding is highly prospective for heavy rare earth mineralisation and has outstanding potential for further discoveries.

While they are called rare earth elements, rare earth elements aren’t actually that rare at all rather they were given this name due to being spread evenly over the earth so it’s hard to find a lot in one place.

Promethium is actually rare because it is radioactive and decays however, cerium is the 25th most common element in the crust.

In mid-August, Northern Minerals entered another agreement to raise a separate $20 million through a private placement to Baogang Group Investment.

This placement was subject to shareholder approval, FIRB approval and all regulatory approvals in the People’s Republic of China being obtained.

Shareholder approval has been received and BGIA (Bard Globalization and International Affairs Program) has confirmed that it will be lodging an application with the Australian Foreign Investment Review Board (FIRB).

Northern Minerals has ended the day up a slight 1.64 per cent with shares trading for 6.2 cents apiece in a $155.8 million market cap.

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