Australian heavy rare earths developer, Northern Minerals has received Federal Investment Review Board approval for a $30 million equity investment by Huatai Mining, part of Chinese coal trader Shandong Taizhong Energy. The FIRB review was the only remaining condition for the investment and the Company now expects the first $9 million tranche by 28 October. Following this, Northern Minerals will appoint Mr Nan Yang as a representative of Huatai Mining to the Board as a non-executive Director.
Highlights
- FIRB has no objection to $30 million Huatai Mining investment
- First $9 million tranche due by 28 October
- 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 the Federal Investment Review Board (FIRB) has no objection to the $30 million equity investment by Huatai Mining, which is part of Chinese coal trader Shandong Taizhong Energy.(1)
FIRB review was the only remaining condition precedent for the investment and the Company expects the first $9 million tranche by 28 October. The second and third tranches of $9 million each are due before the end of November and December respectively. $3 million was received by the company from Huatai Mining in August 2016.
Following the receipt of the first $9 million tranche, Northern Minerals will appoint Mr Nan Yang as a representative of Huatai Mining to the Board as a non-executive Director.
Receipt of the first tranche will enable, Northern Minerals to commence pre-commitment works for the development of the 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 execution of the Huatai Mining transaction is an important step in the development of Browns Range as a globally significant dysprosium operation.
“Our project team has a clear objective and focus of delivering the pilot plant operation at Browns Range before the end of 2017. This transaction keeps us on track for a final investment decision and construction commencement in early 2017.”
(1) Refer ASX announcement 2 August 2016
