THE BOURSE WHISPERER: Heavy rare earths producer Northern Minerals (ASX: NTU) has received the final $1 million in relation to a subscription agreement with Chinese company Liu Xiaohua.
Northern Minerals announced the deal in February 2019.
The company explained the full placement is for 50 million fully paid ordinary shares in Northern Minerals at an issue price of six cents per share to raise $3 million.
The shares will be issued to Liu Xiaohua out of the company’s existing placement capacity under ASX listing rules.
“These funds from the issue of the shares will be utilised for ongoing working capital purposes,” Northern Minerals said in its ASX announcement.
Northern Minerals has completed practical completion of its Browns Range Heavy Rare Earth Pilot Plant Project in northern Western Australia where it has commenced production of heavy rare earth carbonate.
The three-year Pilot Plant project will continue to assist the company evaluate the economic and technical feasibility of mining at Browns Range and will provide the opportunity to gain production experience and surety of supply for our offtake partner.
Through the development of the Browns Range project, Northern Minerals aims to build the WA operation into the first large world producer of dysprosium outside of China.
The project is 100 per cent-owned by Northern Minerals and has several deposits and prospects containing high-value dysprosium and other HREs, hosted in xenotime mineralisation.
Dysprosium is an essential ingredient in the production of DyNdFeB (dysprosium-neodymium-iron-boron) magnets used in clean energy and high technology solutions.