Shareholders have overwhelmingly supported Northern Minerals’ (ASX: NTU) $43 million equity raising, which will provide the Australian heavy rare earths developer with ample financial firepower to advance its world-scale Browns Range project in the East Kimberley region in Western Australia.
The two-tranche placement, to institutional and sophisticated investors at a price of 1.9c per new share, was launched in September.
At a general meeting of shareholders in Perth today, Northern Minerals received sign-off for both tranches of the raising. Both resolutions were supported by at least 99.4 per cent of voting shareholders.
In addition to the raising proceeds of $43 million (before cost), Northern Minerals collected about $3.8 million (before costs) from a completed share purchase plan.
Argonaut Securities and Petra Capital were joint lead managers and joint book runners to the placement.
Below is an extract of the address given by Northern Minerals managing director Shane Hartwig to shareholders at today’s meeting:
“Northern Minerals was extremely pleased with the level of engagement from both existing and new shareholders and particularly the interest shown in the company’s flagship Browns Range heavy rare earths project. This engagement included meeting with many domestic and international institutional investors, existing major shareholders and an extensive call-out program with the company’s significant retail base.
“The Browns Range project, located in the East Kimberley region of Western Australia, is a globally significant heavy rare earths project containing high grades of dysprosium and terbium. With increasing restrictions being placed on mining and processing of rare earth elements in China, ongoing conflicts in Myanmar which is a large source of China’s heavy rare earth supply, Browns Range has the potential to be an important part of an emerging alternate supply chain for rare earth oxides used in clean technology applications.
“The placement enables Northern Minerals to continue key project initiatives including completion of the definitive feasibility study in respect of the Browns Range project, progress project funding processes and advance exploration initiatives to grow the resource base of the company.
“Key workstreams to be completed on the DFS include finalisation of the updated Mineral Resource estimate (including peer review), completion of the reporting and analysis of the metallurgical process test work recently completed, determination of final mine design (open pit and underground) and associated proposed production schedule and a capital and operating expenditure review.
“Northern Minerals’ exploration initiatives will include a regional target generation exploration program across the entire tenement portfolio located across Western Australia and Northern Territory. The program expands the area of interest for exploration over the Browns Range Dome – Western Australia (BRD-WA), the Browns Range Dome – Northern Territory (BRD-NT) and the Coomarie Dome (CD). Importantly, the implementation of active target generative work programs over this expanded area covers the underexplored components of the tenement portfolio. This is an extension of the company’s exploration strategy, which to date has predominantly focused on BRD-WA.
“We thank all our shareholders for their support at today’s meeting and look forward to providing you with ongoing updates as the team completes the key milestones towards progressing the development of Browns Range.”
