Northern Minerals Limited (ASX: NTU) has closed its Share Purchase Plan offer (SPP) announced on 20 April 2020 with total funds raised of A$9.98m (before costs).
This follows completion of Tranche 1 of the Company’s A$22 million placement (Placement) to various sophisticated investors on 28 April 2020 which raised cash proceeds of A$6 million (before costs) and resulted in the repayment of A$3 million of the amounts owing on the A$7.5 million convertible notes issued on 26 June 2019.
The Company was very pleased with the strong response to the SPP and received applications well in excess of the Company’s targeted amount of A$5 million (before costs).
As allowed by the SPP terms, the Board decided to accept applications beyond the A$5 million target rather than scale back applications under the SPP. Once subscription funds have cleared, the Company expects to issue 499,020,000 fully paid ordinary shares in the Company (Shares), which will rank equally with existing quoted Shares from their date of issue (expected to be 10 June 2020).
The new Shares will be issued at A$0.02 each, the same issue price as under the Placement. The funds raised under the SPP (including the funds raised above the target amount of A$5 million) will be used for the continued development of the Company’s projects and operation of the Company’s business; for expenditure relating to care and maintenance of the Browns Range Pilot Plant; and for general working capital purposes.