Australian heavy rare earths developer Northern Minerals (ASX: NTU) received a stunning backing from its dedicated shareholder base after successfully raising $20 million for ongoing development work at its Browns Range pilot plant project in northern Western Australia.
Australian heavy rare earths developer Northern Minerals (ASX: NTU) received a stunning backing from its dedicated shareholder base after successfully raising $20 million for ongoing development work at its Browns Range pilot plant project in northern Western Australia.
Perth-based Northern Minerals announced this week it had entered into multiple subscription agreements with several sophisticated investors for the placement of an overall 400 million shares at an issue price of 5 cents each.
Shares in Northern Minerals were worth about 4.2 cents each at the start of March, but those who participated in the raising will no doubt be celebrating this weekend as the company’s stock was resting on 7.2 cents by the close on Friday.
At the time the raising was done, the issue price represented a near-18 per cent discount to the 20-day VWAMP and a 29 per cent discount to the 5-day VWAMP.
“The placement will allow us to ramp up exploration at the high-grade Dazzler and Iceman prospects and strengthen the balance sheet for working capital purposes,” Northern Minerals managing director George Bauk said.
“The support for the placement was excellent, with many parties now having a better understanding of the important role of heavy rare earths in the electric vehicle sector.”
Meanwhile, the board of Northern Minerals is contemplating undertaking a further entitlement offer at the same price as the placement, on a 1-for-15 basis; however, a final decision is yet to be made.
