Australian heavy rare earths producer Northern Minerals (ASX: NTU) has entered into a subscription agreement with Liu Xiaohua for a $3 million placement, the proceeds from which will be used for ongoing working capital needs. The company has also entered into a consultancy agreement with Go & Company, for the advisement on future equity raisings.
Australian heavy rare earths producer Northern Minerals Limited (ASX: NTU) (the Company) is pleased to announce that it has entered into a subscription agreement with Liu Xiaohua, for the placement of 50,000,000 fully paid ordinary shares in the Company at an issue price of A$0.06 per share to raise A$3 million (before costs).
Subscription funds are to be received by the Company on or before 8 February 2019 and the shares will be issued to Liu Xiaohua out of the Company’s existing placement capacity under Listing Rule 7.1A. Shareholder approval will not be required for this issue of shares however, the Company may seek to ratify the issue at future general meetings.
Funds raised from the issue of the shares will be utilised for ongoing working capital purposes.
The Company has also entered into a consultancy agreement with Go & Company Ltd under which Go & Company Ltd will advise the Company on future equity raisings. The Company will issue 10,000,000 fully paid ordinary shares to Go & Company Ltd as partial consideration for entry into the consultancy agreement once the $3 million placement described above has been completed. The Company will not raise any funds through this issue of shares and the shares will be issued out of the Company’s existing placement capacity under Listing Rule 7.1. Shareholder approval will not be required for this issue of shares however, the Company may seek to ratify the issue at future general meetings.
An Appendix 3B will follow this announcement once the respective shares have been issued.
