Rare earths developer Northern Minerals has announced a A$25-million capital raise to advance its Browns Range project towards a final investment decision (FID) in the first half of 2024.
The company on Wednesday said it had successfully placed more than 833.3-million shares, at a price of 3c each, to sophisticated and institutional investors. The placement price represented a 9.1% discount to the company’s last closing price and a 9.7% discount to its five-day volume weighted average share price.
The new shares will be issued under Northern Minerals’ existing placement capacity and will not require shareholder approval.
"We are extremely pleased to have successfully raised A$25-million from new and existing institutional and sophisticated investors, demonstrating shareholder and investor confidence in the Browns Range project, said Northern Minerals executive chairperson Nick Curtis.
“The placement enables the company to maintain its momentum to complete key project milestones and to secure the Browns Range project funding and proceed towards a FID which is now expected to occur in the first half of the 2024 calendar year.
“We are pleased to be moving from an exploration company into a mining development company that, on development, will be a globally significant supplier of dysprosium and terbium concentrate. These metals will play an important role in enabling the electrification transition that is expected to occur globally over the next 10 years.”
An updated definitive feasibility study on the A$500-million Browns Range project is due later this year. The project is expected to have a mine life of eight years, with first production targeted in 2026, subject to approvals and project funding.
