Australian heavy rare earths producer Northern Minerals (ASX: NTU) has entered into subscription agreement with various sophisticated investors to raise $22 million under a private placement comprised of four tranches.
Tranche 1 consists of 450,000,000 shares at A$0.02 per share with a subscription amount of A$9.0m on or about 24 April 2020
Tranche 2 consists of 210,000,000 shares at A$0.02 per share with a subscription amount of A$4.2m on or about 1 June 2020
Tranche 3 consists of 170,000,000 shares at A$0.02 per share with a subscription amount of A$3.4m on or about 25 June 2020
Tranche 4 consists of 270,000,000 shares at A$0.02 per share with a subscription amount of A$5.4m on or about 25 July 2020 Total 1,100,000,000 A$0.02 A$22.0m
The Investors may each nominate a nominee to be issued the relevant Subscription Shares.
The issue of 259,525,770 Subscription Shares under Tranche 1 will be made using all of the Company’s existing placement capacity under Listing Rule 7.1A. The issue of the remaining 190,474,230 Subscription Shares under Tranche 1 will be made out of the Company’s existing placement capacity under Listing Rule 7.1.
The issue of the Subscription Shares under each of Tranches 2, 3 and 4 is subject to the approval of the Company’s shareholders being obtained and a notice of meeting will be despatched shortly in this regard.
All Subscription Shares issued under the Placement will be fully paid ordinary shares and will rank equally with the Company’s existing quoted shares on issue.
375,000,000 Subscription Shares will be issued in repayment of all amounts owing in respect of (and the redemption of) the convertible notes issued on 26 June 2019 with an aggregate face value of A$7,500,000 pursuant to the subscription agreement announced on 23 April 2019 (A$7.5m Convertible Notes). None of these shares are being issued pursuant to the Company’s placement capacity under Listing Rule 7.1A.