Australian heavy rare earths producer, Northern Minerals Limited (ASX: NTU) has released its activities report for the three months to June 30 to the market.
HIGHLIGHTS
· The prices of dysprosium (Dy) and terbium (Tb) have continued to increase during the quarter, with the Dy price up 62% YTD and the Tb price up 38% YTD (as at end June 2019)
· Pilot plant at Browns Range is continuing commissioning with steady state continuous production targeted for mid CY2020
· Extension drilling at the Dazzler deposit continues to highlight the future prospectivity as a high-grade ore source
· Duncan and Gordon Downs Roads have received $51m in joint funding from the Commonwealth and State Government in the WA FY20 Budget, allowing for the potential of uninterrupted production year-round once completed
· A new A$15 m Placement and Convertible Debt Agreement was undertaken during the quarter to sophisticated investors, subject to shareholder approval
· A Placement and accelerated non-renounceable entitlement offer to raise A$21.95m commenced during the quarter. Post-quarter, a further A$30m was raised from sophisticated clients of Argonaut Securities
· Two existing debt facilities were retired during the quarter, strengthening the Company’s balance sheet
· The Company’s claim for research and development (R&D) refundable tax offset in relation to the 2017/18 tax year has been denied by AusIndustry. The Company has commenced an appeal process to overturn this decision
As an interim measure, the Company and the Australian Taxation Office (ATO) agreed to a staged repayment plan for the disputed liability
