Australian heavy rare earths producer Northern Minerals (ASX: NTU) has reached practical completion at its Browns Range pilot plant, with commissioning on schedule ahead of an expected first shipment before the end of the year.
Highlights
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Commissioning ongoing and continuing well.
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Practical Completion achieved.
Australian heavy rare earths producer, Northern Minerals (ASX: NTU) (Company) is pleased to announce that commissioning of its Browns Range R&D Pilot Plant Project in the East Kimberley region of Western Australia (R&D Pilot Plant Project) is continuing and progressing in accordance with expectations.
Under the terms of the EPC construction contract (EPC Contract) between the Company and Sinosteel MCC, Practical Completion has been determined to have been achieved in respect of the construction phase of the R&D Pilot Plant Project as of 24 October 2018.
Under the EPC Contract, payment of $10.2m (ex GST), is deferred (Deferred Cost).
The Deferred Cost is payable by the Company in 5 quarterly instalments commencing on the date 12 months after Practical Completion.
Commissioning activities will continue, and product is being stockpiled ahead of a first shipment expected by the end of the month.
Northern Minerals’ Managing Director and CEO, George Bauk, said “We continue to kick goals at Browns Range and Practical Completion is another major milestone that we have ticked off.
“Commissioning is progressing well, and we are aiming for shipment of our first product from the Pilot Plant before the end of the year.”
“We want to take this opportunity to recognise the excellent work undertaken by Sinosteel MECC on the construction and delivery of the Browns Range R&D Pilot Plant.”
Investors are encouraged to update their contact details to stay up to date with Northern Minerals news and research at: http://northernminerals.com.au/update-details/
