Northern Minerals (ASX: NTU) has raised $10 million via an Underwritten Placement at 13.5cps, a premium to the last closing price. The funding, combined with the recent Huatai funding and Sinosteel MECC deferred payment agreement, adds significantly to the funding requirements for the Browns Range Heavy Rare Earths Pilot Plant development.
HIGHLIGHTS
- Underwritten Placement at 13.5c to raise A$10 million
- Placement being made to a syndicate of investors
- Placement underwritten by Hong Kong-based AMC Wanhai Securities Limited
- Shares to be issued under existing authorities under ASX Listing Rule 7.1
Australian heavy rare earths developer, Northern Minerals Limited (ASX: NTU) is pleased to announce that it has entered an Underwriting Agreement with Hong Kong-based fund for a Placement to raise A$10 million.
The Placement is being undertaken at 13.5 cents per share, a 4% premium to the last closing share price on 14 March 2017 of 13.0 cents.
Northern Minerals has received strong interest for the Placement and intends to place shares to the underwriter as well as a syndicate of investors.
The Placement of 74,074,074 shares represents less than 10% dilution to the existing shares on issue and will be undertaken utilising existing authorities under ASX Listing Rule 7.1.
The Company has received applications and cleared funds for the first A$2 million of the Placement and intends to issue these shares shortly. The remainder of the Placement and any underwriting shortfall will be completed by mid-June.
Mr George Bauk, Northern Minerals’ Managing Director and CEO, said “This new premium funding package continues to highlight the investment appeal of the Browns Range Heavy Rare Earths Project. As we approach the Final Investment Decision for the Browns Range Pilot Plant Project, this funding package is another key milestone towards making Browns Range a reality.”
