Northern Minerals (ASX: NTU) announced that it has granted Huatai Mining Pty Ltd (Huatai Mining) an extension for the $18 million payment that was due by 28 December 2016 to 10 January 2017. The extension was granted following recent policy changes in China and the Chinese governments increased supervision and control in relation to outbound investments by Chinese companies.
Northern Minerals (ASX: NTU; the Company) announces it has agreed to grant Huatai Mining Pty Ltd (Huatai Mining) an extension for the $18 million payment that was due by 28 December 2016 to 10 January 2017.
Huatai Mining has experienced difficulty transferring money from China due to recent policy changes in China and the Chinese governments increased supervision and control in relation to outbound investments by Chinese companies.
Accordingly, Huatai Mining has requested, and the Company has agreed to grant, subject to compliance with the ASX Listing Rules, an extension to 10 January 2017 by which time Huatai Mining expects to complete the transfer of funds. Huatai Mining has provided the Company with documentation evidencing that Chinese approvals have been updated and the money is in the process of being transferred from China, having left Taizhong Energy’s Chinese bank account on 22 December 2016.
Huatai Mining has advised the Company that it fully expects to complete the transaction prior to 10 January 2017.
The completion of this transaction will facilitate the Company’s commitment to establish a pilot plant at Browns Range, and maintains the Company’s position to become the world’s first significant producer of dysprosium outside of China.
