Australian heavy rare earths producer Northern Minerals Limited (ASX: NTU) has issued 66,666,667 fully paid ordinary shares to a nominee of Lind Global Macro Fund, LP as a result of the conversion into shares of $1,200,000 of the face value of the replacement convertible security referred to in the company’s announcement and cleansing notice dated 22 June 2020.
Following this conversion there are no amounts outstanding under the replacement convertible security (which has now been redeemed in full).
The issue of the replacement convertible security (and the subsequent issue of shares on conversion) was approved by shareholders at the Company’s General Meeting on 18 June 2020.
Pursuant to the terms of the Funding Agreement with Lind announced on 2 March 2020 (Funding Agreement), under which the replacement convertible security was issued, Lind has also elected to reduce the Collateral Shareholding Number (of fully paid ordinary shares) under the Funding Agreement (which would have otherwise been available to be applied towards satisfying the Company’s conversion or repayment obligations under the Funding Agreement) from 60,000,000 shares to zero, by paying the Company $1,080,000 in cash. The Company expects to receive cleared funds shortly and intends to apply those funds towards the continued development of the Company’s projects and operation of the Company’s business, and for general working capital purposes.
Northern Minerals CEO, Mark Tory, said, “This is the third funding arrangement over a number of years that the Company has transacted with Lind. The Company appreciates the continued support demonstrated by Jeff Easton and the team at Lind and the professional approach adopted by Lind over the years.”
