Australian heavy rare earths producer, Northern Minerals Limited, has entered into a subscription agreement with specialist rare earth separation company, NRE Industrial Group Limited (NRE), to raise $25 million for Northern Mineral’s flagship Browns Range Project in Western Australia.
NRE will provide $25 million in four tranches for a total share of 17.2 per cent of Northern Minerals. The final payment is expected on 31 December 2018, with the largest tranches priced at 10¢ and 11¢ a share.
The funds raised under the new Subscription Agreement will be used to progress development of the Northern Mineral’s Browns Range Heavy Rare Earth Pilot Plant Project, in addition to accelerating enhancement initiatives and exploration efforts at Browns Range.
Through the development of the Project, Northern Minerals is the first significant world producer of dysprosium (an essential ingredient in the electric vehicle sector) outside of China. The project has several deposits and prospects containing high-value dysprosium and other heavy rare earths.
Northern Minerals’ Managing Director and CEO, George Bauk, said this new investment by NRE follows a non-solicited approach to the company.
“With Browns Range now in the commissioning phase and commencing the production of mixed rare earth carbonates, we are investigating ways of enhancing the project to deliver better outcomes for our shareholders,” he said.
In the same announcement, Northern Minerals detailed that an additional $2 million subscription agreement was also executed with a new private investor.
More information on the Browns Range Heavy Rare Earth Pilot Plant Project can be found here.
