Northern Minerals releases non-REE assets

THE BOURSE WHISPERER: Northern Minerals has signed an option agreement with Mineore in regard to the sale of some of Northern Minerals’ non-Rare Earth Elements assets at the Epenarra and Amadeus Basin projects in the Northern Territory.

 

Northern Minerals project locations. Source: Company announcement

 

Mineore is a Brisbane-based resources company, which is focused on exploration for fertiliser based minerals such as potash and phosphate.

The company has a number of assets in Queensland, including phosphate exploration licenses in the Georgina Basin.

Mineore have paid Northern Minerals $20,000 for the option agreement, which will entitle it to commence due diligence, taking no longer than 75 days.

Once the full sale agreement has been executed, Northern Minerals will receive an additional $430,000 while retaining the REE mineral rights on the tenements in question.

The final transaction remains subject to due diligence by Mineore and the transfer of the exploration licences, which requires NT Ministerial approval.

Northern Minerals said the agreement reinforced the company’s ongoing strategy to focus on heavy rare earth production at the Browns Range and John Galt projects, while creating shareholder value with other non-REE assets.

“The option agreement with Mineore allows us to remain focused on the pathway to production at Browns Range, as well as allowing further opportunities to grow our mineral inventory at Epenarra and Amadeus Basin in the future,” Northern Minerals managing director George Bauk said in the company’s announcement to the Australian Securities Exchange.

“The past few months have demonstrated that Northern Minerals heavy rare earths projects remain robust, with previously reported encouraging metallurgical results.

“First and foremost we remain committed to delivering a heavy rare earth mineral concentrate by 2015 at Browns Range and John Galt.”