Northern Minerals (ASX: NTU) has received the first of three $9m investment tranches from Huatai Mining that will be applied towards the development of a Pilot Plant at the Browns Range heavy rare earths project. The second and third $9m tranches are due at the end of November and December respectively. Initial works have commenced for Browns Range, including engineering, camp expansion and water studies.
Highlights
- First $9 million tranche from Huatai Mining received
- Second and third tranches of $9m each due before the end of 2016
- Browns Range on track for final investment decision in early 2017
Australian heavy rare earths developer, Northern Minerals Limited (ASX: NTU) is pleased to announce that it has received the first $9 million tranche as part of a $30 million equity investment by Huatai Mining, which is part of Chinese coal trader Shandong Taizhong Energy.
The second and third tranches of $9 million each are due before the end of November and December respectively. An initial investment of $3 million was completed in August.
With the first tranche of funds received, the Company has commenced pre-commitment works for the development of a pilot plant at the Browns Range Project, including mine planning drilling, water supply, engineering design and an extension to the accommodation camp.
Northern Minerals’ Managing Director George Bauk said the receipt of funds from Huatai Mining signified the strength of Browns Range as a globally significant dysprosium deposit outside of China.
“With an expectation of a final investment decision in early 2017, our project development team is moving ahead with initial site works to ensure we fulfil our strategy of achieving first production in late 2017,” Mr. Bauk said.
