Northern Minerals completes institutional entitlement offer
Northern Minerals (ASX: NTU) has completed the institutional component of its non-renounceable entitlement offer, which was announced on last week. The institutional entitlement offer raised about $2.6 million at 4.5 cents a share.
Northern Minerals (ASX: NTU) has completed the institutional component of its accelerated non-renounceable 1 for 13 pro-rata entitlement offer, as announced on 6 June 2019.
The Institutional Entitlement Offer raised $2,662,054.70 (before costs) at the offer price of $0.045 (Offer Price) per new fully paid ordinary share (New Share). A total of 59,156,771 New Shares were offered to eligible institutional shareholders under the Institutional Entitlement Offer, all of which were subscribed for.
The Company intends to use the funds raised under the Institutional Entitlement Offer, the placement announced on 6 June 2019 and the retail entitlement offer described below to:
(1) meet commitments to the Australian Taxation Office (ATO) in accordance with the in-principle agreement with the ATO regarding repayment of amounts owing as described in the ASX announcement dated 5 June 2019 (pending the outcome of the Company’s rights of review as described in the ASX announcement dated 17 May 2019);
(2) progress the Company’s enhancement initiatives at Browns Range, including further exploration, ore sorting and product separation; and
(3) provide general working capital. New Shares issued under the Institutional Entitlement Offer will rank equally with existing shares on issue and are expected to settle on 20 June 2019.
New Shares under the Institutional Entitlement Offer will be issued on 24 June 2019 and will commence trading on a normal settlement basis on the ASX on the same day.
“We are delighted with the overwhelming success of the Institutional Entitlement Offer and the strong demand for the Company’s shares and appreciate the support we have received,” said George Bauk, Managing Director/CEO of the Company.
Commencement of the Retail Entitlement Offer The retail component of the Entitlement Offer (Retail Entitlement Offer) will open on 17 June 2019 and is anticipated to close at 5:00pm (AEST) on 8 July 2019 through a 1 for 13 pro-rata nonrenounceable entitlement offer at $0.045 per share.
Eligible retail shareholders with a registered address in Australia or New Zealand as at 7.00pm (AEST) on 12 June 2019 (Record Date) (Eligible Retail Shareholders), have the opportunity to take up their entitlement of New Shares at the Offer Price, on the terms and conditions outlined in the Retail Offer Booklet to be lodged with ASX today and then sent to Eligible Retail Shareholders on or around 17 June 2019.
Eligible Retail Shareholders can choose to take up all, part, or none of their entitlements. Furthermore, the Retail Entitlement Offer will include a top up facility under which Eligible Retail Shareholders who take up their entitlement in full may also apply for additional New Shares in the Retail Entitlement Offer that were not taken up by other Eligible Retail Shareholders. There is no guarantee that applicants under the top up facility will receive all or any of the additional New Shares for which they apply.