Northern Minerals scores $4M interim funding

THE BOURSE WHISPERER: Northern Minerals (ASX: NTU) has locked in $4 million of interim funding through an interest free, non-recourse loan from ACIIG.

The company said the loan allows it to commence an extensive drilling program at the company’s Browns Range Heavy Rare Earth project while it waits on the completion of a $58 million funding package.

“This non-recourse loan facility now gives us added short-term funding certainty to move ahead with our resource drilling program next month, and we are confident of achieving results that will drive value for shareholders,” Northern Minerals managing director George Bauk said in the company’s announcement to the Australian Securities Exchange.

“We have a significant program planned as part of our strategy to expand our current JORC-compliant resource estimate of 10,500 tonnes total rare earth oxide (TREO) to a target of between 22,000 and 29,000 tonnes TREO.

“The interest free loan reaffirms the commitment of our funding partner and major shareholder to the development of the Browns Range project and demonstrates ACIIG’s confidence in the Northern Minerals team.

“ACIIG shares the company’s vision of Browns Range in playing an important role as a source of HREO for a high demand global market in the near future.”

ACIIG chairman Conglin Yue said his company would continue to help facilitate Northern Minerals’ growth.

“We support Northern Minerals’ management and its development strategy at Browns Range,” Yue said in the announcement.

“We believe our latest investment will be of benefit to all shareholders.”

Northern Minerals expects to receive the funds from the loan facility by 8 April 2013.