Australian heavy rare earths producer Northern Minerals Limited (ASX: NTU) has announced an issue of securities and also provided an update on the Company’s previously announced $22 million placement.
A$22 Million Placement
The Company refers to its announcements dated 20 and 28 April 2020 in relation to the Company’s A$22 million placement and confirms that on 30 June 2020 the Company issued 321,500,000 fully paid ordinary shares under the Placement to the subscribers (or their nominees).
Out of the 321,500,000 shares issued, 225,000,000 shares were issued to Yuzhen Ma in full repayment of the remaining amounts owing on the convertible notes issued on 26 June 2019 which had an initial aggregate face value of A$7,500,000 (which was reduced to A$4,500,000 after completion of Tranche 1 of the Placement). Accordingly, all of the Convertible Notes have now been fully repaid and redeemed.
The remaining 96,500,000 shares issued relate to subscription funds received by the Company totaling A$1.93 million in respect of parts of Tranches 2 and 3 of the Placement.
Shareholder approval for the issue of shares under the Placement was obtained at the Company’s general meeting held on 18 June 2020. Please refer to the Notice of General Meeting released to ASX on 18 May 2020 for further detail.
The Company has agreed with the remaining subscribers that the balance of A$6.57 million in subscription funds (comprising the remainder of the Placement) will be due and payable on or before 25 July 2020.
Exercise of performance rights
A total of 4,000,000 fully paid ordinary shares have been issued today to Company executives and directors as a result of the exercise of performance rights which had already vested. These shares were issued under exceptions contained in Listing Rule 7.2 and the issue was not conditional on receipt of shareholder approval.
