AUSTRALIA — Northern Minerals Limited (ASX: NTU) has successfully raised $43 million through a two-tranche placement to institutional and sophisticated investors.
The funds will be used to advance the company’s Browns Range Heavy Rare Earths Project, which aims to supply critical elements for the global clean energy transition.
The placement was priced at $0.019 per share, representing a 20.8 per cent discount to the last closing share price and a 22.4 per cent discount to the 5-day Volume-Weighted Average Price (VWAP).
The capital raise consists of two tranches:
- Tranche One: Approximately $17 million was raised through the issue of 887 million shares under the company’s existing placement capacity.
- Tranche Two: Subject to shareholder approval, approximately $26 million is to be raised through the issue of 1.38 billion shares.
In addition to the placement, Northern Minerals will offer a Share Purchase Plan (SPP) to eligible shareholders, aiming to raise an additional $5 million at the same price of $0.019 per share.
The proceeds from the placement and SPP will be allocated towards:
- Completing the Definitive Feasibility Study (DFS) by Q1 2025
- Project development initiatives
- Exploration drilling
- Working capital requirements
The company aims to reach a Final Investment Decision (FID) in the first half of 2025.
Adam Handley, Chairman of Northern Minerals, expressed satisfaction with the strong support from investors, stating that it reflects confidence in the Browns Range Project.
He emphasised the company’s commitment to becoming a significant supplier of dysprosium and terbium, critical elements for the clean energy transition.
Shane Hartwig, Managing Director, highlighted that the placement will enable Northern Minerals to continue key project initiatives and pursue project funding.
He also noted that while the target FID date has been adjusted, the team is using this time to complete additional technical work programs crucial to the project’s long-term value.
Northern Minerals Limited owns 100 per cent of the Browns Range Heavy Rare Earths Project in Western Australia.
The project focuses on producing dysprosium and terbium, which are essential components in the manufacture of permanent magnets used in clean energy, military, and high-technology applications.
With this successful capital raise, Northern Minerals is well-positioned to advance its Browns Range project and contribute to the global supply of critical rare earth elements.
