Northern Minerals raises $30m for Browns Range enhancement work
Australian heavy rare earths producer, Northern Minerals Limited (ASX: NTU) has entered into subscription agreements with Australian and overseas investors to raise $30 million under a private placement and has approved a major expansion of the Company’s Browns Range project enhancement initiatives that were first announced to the ASX in late 2018.
· Commitments for A$30 million received from Australian and overseas investors under a private placement.
· Strong interest from customers, investors and Government bodies in the Company’s Browns Range Project in light of on-going US-China trade tension.
· Approved initiative to commence ore sorting, with trials indicating the potential to double the plant feed grade.
· Product separation to be accelerated through investigation of product separation technology.
· Exploration programme to be expanded.
Details of the Placement and the key project enhancement initiatives (ore sorting, product separation and increased exploration) for Browns Range are set out in the link below.
The Company is continuing commissioning of the Browns Range Pilot Plant Project and based on the results to date, it is investigating further options to improve the technical performance of the plant.
The programme expansion and acceleration is a result of significantly increased levels of interest in the Company and the Browns Range Project from a number of parties, including potential customers, investors and Government bodies in Australia and the US.
This interest largely stems from the increased focus on rare earths as a result of the trade tension between the US and China, which has seen the Dysprosium price increase by ~55% in 2019.