Australian heavy rare earths producer, Northern Minerals Limited (ASX: NTU) has entered into a subscription agreement with NRW Industrial Group to raise $25 million, while a further $2 million has been raised from an undisclosed private investor by way of a subscription agreement. NRW is a subsidiary of a specialist rare earth separation company based in China. The funds raised will be put towards further development of the Browns Range project, as well as exploration initiatives.
Highlights
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$25 million subscription agreement executed with new investor • $1 million subscription amount for initial tranche received
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Second, third and fourth tranches of $1 million, $10 million and $13 million (respectively) due end of October, November and December (respectively), subject to conditions precedent
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Additional $2 million subscription agreement executed with new investor
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Funds to be applied towards further development of the Browns Range Heavy Rare Earth Pilot Plant Project and exploration
Australian heavy rare earths producer, Northern Minerals Limited (ASX: NTU) (the Company) is pleased to advise that it has entered into a subscription agreement with NRE Industrial Group Limited (NRE) to raise $25 million. NRE is a subsidiary of Northern Rare Earth SYL High-tech Co., Ltd, a specialist rare earth separation company based in China. The Company also executed a further $2 million subscription agreement with a private sophisticated investor which is 22,222,222 shares at 9 cents to be received by 31 October 2018.
NRE may nominate a nominee to be issued the relevant Subscription Shares.
The Company has received the Subscription Amount for Tranche 1 and will issue 11,111,111 Shares to NRE or NRE’s nominated entity out of the Company’s existing placement capacity under Listing Rule 7.1. An Appendix 3B will follow this announcement.
The issue of Subscription Shares under Tranche 2 will also be issued out of the Company’s existing placement capacity under the Listing Rules and is subject to all Chinese regulatory (and other) approvals being obtained.
