Northern Minerals (ASX: NTU) has executed a US$30 million R&D Loan Facility with a New York financier as it furthers the development of the Browns Range Heavy Rare Earths Project in the East Kimberley. The Facility allows the Company to draw down against expected R&D rebates, which are paid by the Australian Government to the Company at the end of the tax year.
Australian heavy rare earths developer, Northern Minerals Limited (ASX: NTU) (the Company) is pleased to announce that it has executed a two and a half year US$30 million secured R&D Loan Facility (the Facility) with New York-based financier Innovation Structured Finance Co., LLC (ISF), a company associated with Brevet Capital Management (Brevet).
The Facility provides the Company with accelerated access to tax offsets that are applicable to Research & Development (R& D) activities being undertaken at the Browns Range Pilot Plant Project.
Under the Facility, the Company will work with its tax advisor, Deloitte, to estimate the level of tax offsets at the end of each quarter. ISF will then provide funding up to 80% 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.
The Facility has a term of two and a half years, aligning with the timeline for the Browns Range Pilot Plant Project.
Concurrently, the Company is pleased to announce the appointment of Louis de Klerk to the newly created position of R&D Manager. Mr de Klerk will be responsible for all the R&D aspects of the Browns Range Project, with a specific focus on improving the economic and technical feasibility of the potential large-scale project. Mr de Klerk, a chemical engineer, has more than 25 years’ experience across Australia and Africa with a focus on the development of new process technologies.
Northern Minerals’ MD and CEO, George Bauk, commented “We are pleased to partner with a strong US-based financier who is demonstrating an interest in funding R&D projects in Australia.”
“ISF is building up a significant presence in Australia, with plans to deploy up to US$100m into the Australian market through R&D financing over the coming years. We expect they will become a major player in a maturing finance market.”