Perth, Australia – 16 September 2024 | Northern Minerals Limited (ASX: NTU) (“Northern Minerals” or “the Company”) is pleased to announce it has received binding commitments to raise $43 million (before costs), via a two-tranche Placement (the “Placement”) to institutional and sophisticated investors. The funds will be used to advance the Browns Range Heavy Rare Earths Project, which is focused on supplying critical elements that are essential to the global clean energy transition.
Highlights:
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$43 Million Raised: Binding commitments were received from new and existing institutional and sophisticated investors, raising $43 million (before costs) through a two-tranche Placement at an issue price of $0.019 per share. This represents a 20.8% discount on the last closing share price, as well as a 22.4% discount on the 5-day Volume-Weighted Average Price (VWAP).
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Share Purchase Plan (SPP): A Share Purchase Plan (SPP) will also be offered to eligible shareholders, aiming to raise an additional $5 million at the same price of $0.019 per share.
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Use of Funds: Proceeds from the Placement and SPP will be applied towards the completion of the Definitive Feasibility Study (DFS), project development initiatives, exploration drilling, and working capital requirements. The Company aims to finalise the DFS by Q1 CY2025, leading to a Final Investment Decision (FID) in 1H CY2025.
Adam Handley, Chairman of Northern Minerals, commented: “We are pleased with the strong support from existing and new investors, which reflects a clear vote of confidence in the Browns Range Project. We look forward to executing on our strategy and delivering on our commitment to becoming a globally significant supplier of dysprosium and terbium – critical elements essential to driving the global clean energy transition.”
Shane Hartwig, Managing Director of Northern Minerals, added: “The placement enables Northern Minerals to continue key project initiatives, seek project funding and proceed towards a Final Investment Decision, while also enabling the Company to undertake value-accretive exploration initiatives.
Our team is working to complete the DFS (Q1 2025) to put the Company in a position where we can consider a positive FID for the development of the Project. The release of the Company’s updated Mineral Resource estimate (Q4 2024) will be a key milestone to enable the DFS to be completed. Although our target FID date has moved, the team is using this time to complete additional key technical work programs that will assist in ongoing technical due diligence reviews of the Project, important in ensuring the production of a DFS focusing on long-term, sustainable value for shareholders.”
Details of the Placement:
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Tranche One: Raising ~$17 million via issue of 887 million shares under the Company’s existing placement capacity.
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Tranche Two: Subject to shareholder approval, raising ~$26 million via the issue of 1.38 billion shares.
For further information, please contact:
Shane Hartwig
Managing Director
info@northernminerals.com.au
Peter Klinger
Purple Communications
pklinger@purple.au
Jane Morgan
Jane Morgan Management
jm@janemorganmanagement.com.au
About us:
About Northern Minerals:
Northern Minerals Limited (ASX: NTU) (Northern Minerals or the Company) owns 100% of the Browns Range Heavy Rare Earths Project in the East Kimberley region of Western Australia (the Project). The Project’s deposits are uniquely rich in the heavy rare earth elements dysprosium (Dy) and terbium (Tb).
Dysprosium and terbium are critical in the production of dysprosium neodymium iron-boron (DyNdFeB) magnets used in clean energy, military, and high technology solutions. Dysprosium and terbium are prized because their unique properties improve the durability of magnets by increasing their resistance to demagnetisation.
The Project’s flagship deposit is Wolverine, which is thought to be the highest-grade dysprosium and terbium ore body in Australia. The Company is preparing to bring Wolverine into production with the objective of providing a reliable alternative source of dysprosium and terbium to production sourced from China.
Northern Minerals is completing a definitive feasibility study for a commercial-scale operation focused on mining and beneficiating ore from the Wolverine deposit, for delivery to Iluka Resources’ (ASX: ILU) under-construction rare earths refinery at Eneabba, also in Western Australia.
In addition to Wolverine, Northern Minerals has several additional deposits and prospects within the Project that contain dysprosium and other heavy rare earth elements, hosted in xenotime mineralisation.
For more information, please visit northernminerals.com.au
Contact details:
Jane Morgan
Jane Morgan Management
Investor & Media Relations
jm@janemorganmanagement.com.au