Northern Minerals has announced a $26.6 million capital raising plan to fund the development of its Browns Range heavy rare earths project in the Northern Territory.
The company today launched a one for two share rights issue to raise the funds, priced at 20 cents per share, with one option attached for every two new shares issued.
The rights issue will be fully underwritten by major shareholder Conglin Yue, though the Australian Conglin International Investment Group.
The funds will be used to contuinue exploration and development works at Browns Range.
Northern Minerals said works would include geotechnical and mine planning, environmental studies and approvals, Aboriginal heritage and access arrangement and feasibility studies covering engineering and infrastructure.
“The share rights issue provides the opportunity for all shareholders to take part in the funding of the next phase of our development, and to further participate in the company’s long-term growth,” managing director George Bauk said.
“This funding will provide a high level of certainty and security for Northern Minerals and will allow us to build upon the success we have achieved at Browns Range in the past twelve months.”
At close of trade today, Northern Minerals shares were down 2.9 per cent, trading at 16.5 cents.
