logo
powered-by-canningspurple
Navigation
logo powered-by-canningspurple
  • Insight
  • Companies
    • Artemis Resources
    • BLK Auto
    • BMG Resources
    • ChemX Materials
    • Core Lithium
    • Dreadnought
    • FBR
    • Finbar
    • Focus Minerals
    • Gold Road Resources
    • Hastings Technology Metals
    • Hyzon Motors
    • Jupiter Mines
    • Lykos Metals
    • Mineral Resources
    • Northern Minerals
    • Northern Star
    • NRW Holdings
    • Paydirt
    • Rand Mining
    • Raven SR
    • Rox Resources
    • St George Mining
    • Sundance Resources
    • Tribune Mining
    • Vimy Resources
    • VRX Silica
  • Industries
    • Broking Firm
    • Clean energy
    • Copper
    • Gold
    • Insight
    • Iron ore
    • Lithium
    • Manganese
    • Mining Services
    • Nickel
    • Oil & Gas
    • Property
    • Rare Earths
    • Silica Sand
    • Technology
    • Uranium
    • Zinc
  • Video
  • About
  • Contact
  • Subscribe

Home / Rare Earths / Northern Minerals – Latest R&D Funding Received & Further Drawdown under Lind Funding Agreement

Northern Minerals

  • ASX: NTU
    • REE

Northern Minerals – Latest R&D Funding Received & Further Drawdown under Lind Funding Agreement

  • 30 August

Australian heavy rare earths developer, Northern Minerals Limited (ASX: NTU) has received a further $3 million from Innovation Structured Finance Co., LLC, under its R&D Financing Facility as announced on 29 August 2017. Under the R&D Financing Facility, the Company has worked with its R&D advisor, Deloitte, to estimate the level of tax offsets for the FY18/19. The company has also made a further $2 million drawdown under the funding agreement with the Lind Partners.


Australian heavy rare earths producer Northern Minerals Limited (ASX: NTU) (the Company) is pleased to advise that it has received a further $3 million from Innovation Structured Finance Co., LLC, under its R&D Financing Facility as announced on 29 August 2017.

Under the R&D Financing Facility, the Company has worked with its R&D advisor, Deloitte, to estimate the level of tax offsets for the FY18/19. Innovation Structured Finance Co., LLC, a company associated with Brevet Capital Management (Brevet) provides funding equal to 75% of the estimated tax offset, with the principal and accrued interest repayable out of actual tax offsets received at the end of the financial year.

Under proposed changes to the R&D tax system by the Australian Government, the amount that the Company may be eligible to apply for in FY19 may be limited to $4 million. At present, these proposed changes have not been legislated by the Australian Parliament.

The Company is also pleased to announce that it has made a further drawdown of $2 million under the Funding Agreement entered into with an entity controlled by The Lind Partners (Lind), as announced on 14 June 2017.

This drawdown will be represented by the issue of 2 convertible securities each with a face value of $1.25 million and the face value of the convertible securities are repayable by the Company in accordance with the Funding Agreement (as summarised in the Company’s ASX announcement on 23 April 2018).

The term of each convertible security is 30 months. The net amount to be received by the Company from Lind in relation to the issue of the convertible securities and the $2 million drawdown is $1.95 million, after the deduction of commitment fees payable to Lind in relation to the drawdown that were offset against the funds advanced to the Company.

The Company and Lind have also agreed that the maximum number of shares that may be issued to Lind in relation to conversions of those convertible securities is 25 million shares, or such higher number as approved by shareholders in relation to those convertible securities.

The Company will use the funds advanced under the Funding Agreement to progress development of its Browns Range Heavy Rare Earth Pilot Plant Project, and for working capital purposes.

As part of the drawdown, the Company will, subject to shareholder approval, issue to Lind (or its nominee) 10 million unlisted options each exercisable at $0.125 per option with an expiry date of 36 months from the date the options are issued.

View full announcement

Fraser Beattie

  • Contact

Share

  • LinkedIn
  • Twitter
  • Facebook

Most Read

  • 1 November

Nickel, cobalt anomalies at Sockovac; large new gold, copper anomalies at Sinjakovo

  • ASX:LYK
    • Ni
    • Cu
  • 28 September

Core Lithium – Primero Group Awarded EPC Contract for Finniss DMS Plant

  • ASX: CXO
    • Li
    • Clean energy
  • Insight
  • 26 June

Picking winners – the portfolio approach that offers blue-sky potential

  • ASX: ARV
    • Clean energy
    • Cu

Related

  • Insight
  • 7 May

Uranium, manganese dealt into gold and battery metals Diggers forum

  • ASX: HAS
    • Broking Firm
    • Clean energy
  • Insight
  • 30 April

March Qtr delivers truckloads of Au, Li, Fe and Mn – and a promise of more value

  • ASX: ARV
    • II
    • Broking Firm
  • 29 April

Northern Minerals reports on March Quarter

  • ASX: NTU
    • REE
  • 29 April

Hastings Technology Metals reports on March Quarter

  • ASX: HAS
    • REE

NEWSLETTER

Get news, as it happens

Sign up to receive our weekly roundup, and releases of interest, as they happen.

  • This field is for validation purposes and should be left unchanged.
logo

Investor Insight, powered by Cannings Purple, delivers the stories that matter to the people who matter – across your preferred communications platform.

From breaking news to analysis, opportunities and thought leadership, Investor Insight is your window into some of Australia’s most exciting listed and non-listed companies.

  • Insight
  • Companies
    • Aeris Resources
    • Altrad
    • Argonaut
    • Artemis Resources
    • BLK Auto
    • BMG Resources
    • Buru Energy
    • Catalyst Metals
    • ChemX Materials
    • Core Lithium
    • DDH1 Drilling
    • Dreadnought
    • FBR
    • Finbar
    • Focus Minerals
    • Gold Road Resources
    • Hastings Technology Metals
    • Hyzon Motors
    • Jupiter Mines
    • Lykos Metals
    • Mineral Resources
    • Northern Minerals
    • Northern Star
    • NRW Holdings
    • Paydirt
    • Rand Mining
    • Raven SR
    • Rox Resources
    • St George Mining
    • Sundance Resources
    • Torrens Mining
    • Tribune Mining
    • Vimy Resources
    • VRX Silica
    • Westgold Resources
    • Zenith Minerals
  • Industries
    • Broking Firm
    • Clean energy
    • Copper
    • Gold
    • Insight
    • Iron ore
    • Lithium
    • Manganese
    • Mining Services
    • Nickel
    • Oil & Gas
    • Property
    • Rare Earths
    • Silica Sand
    • Technology
    • Uranium
    • Zinc
  • Video
powered-by-canningspurple
  • About
  • Contact
  • Subscribe
  • Cannings Purple
  • Privacy Policy
  • Disclaimer

Copyright 2022 Cannings Purple