Northern Minerals receives more funds under $30m placement
Northern Minerals (ASX: NTU) has announced that, further to recent announcements in relation to the Company’s $30 million placement, it has received a further $7.86 million in subscription funds.
Accordingly, the Company has issued 126,840,174 shares to the relevant subscribers (including in relation to the $150,000 in subscription funds received as announced on 30 July 2019).
27,634,656 shares have been issued under the Company’s placement capacity under Listing Rule 7.1A and 99,205,518 shares have been issued under the Company’s placement capacity under Listing Rule 7.1.
The total amount raised to date under the Placement is approximately $19.76 million. Remaining funds are due to be received on or before 31 August 2019.
As 27,634,656 shares have been issued using the Company’s placement capacity under Listing Rule 7.1A, the Company provides the following information in accordance with Listing Rule 3.10.5A:
· 27,634,656 shares were issued under Listing Rule 7.1A representing approximately 1.11% of the ordinary shares on issue in the Company, resulting in dilution to the existing shareholders by that amount (with total dilution from the issue of all 126,840,174 shares being approximately 5.08%);
· the shares were issued for cash consideration and the Company conducted the placement rather than a pro-rata issue or other type of issue in which existing security holders would have been eligible to participate as it was considered to be the quickest, most efficient and most certain method of raising funds in the circumstances;
· the placement was not underwritten;
· a fee of 7% of the total funds raised is payable to Argonaut, who is responsible for all associated introductory fees and commissions out of that amount; and
· the Company incurred miscellaneous expenses including listing fees and legal fees in connection with the placement.
The Company also wishes to inform the market that it has been in recent negotiations with a Chineseowned entity regarding the investment of $20 million in the Company through the issue of shares at $0.062 per share under a private placement. The Company has now received the subscriber’s signed counterpart of the subscription agreement for the placement and will hold a board meeting shortly to determine whether the Company will approve the transaction.
The Company will make a further announcement to ASX if this transaction ultimately proceeds. In addition, the Company has also been in discussions with other potential investors about investment opportunities, however those discussions are not sufficiently progressed as to warrant disclosure at this time.