Northern Minerals is continuing its streak of capital raisings, this time seeking $22 million to help repay debts and further advance the Browns Range heavy rare earths pilot project in Western Australia.
The latest funding plans add to the recent raising of $15 million, which was secured for the project in April 2019.
Northern Minerals’ Browns Range pilot plant project in the East Kimberley region is set to become the first rare earth-focused plant to operate outside of China, as well as one of the world’s most significant dysprosium and terbium producers.
The $22 million raising will be split between a $15 million share placement and a non-renounceable entitlement offer of $6.95 million.
Both the placement and entitlement offer are being offered at a price of 4.5 cents a share for roughly 333.3 million new shares and 154.5 million fully paid shares, respectively.
The raising will build on previous funding rounds in October 2018, February 2019 and April 2019, from which the company eventually secured $27 million, $3 million and $15 million, respectively.
Browns Range has a JORC 2012 total mineral resource of 9.07 million tonnes at 0.63 per cent total rare earth oxides (TREO) for 57.3 million kilograms of contained TREO. The project has continued to grow through Northern Minerals’ exploration efforts.
In early May, the company announced a new RC drilling round at its Dazzler and Iceman deposits located less than 15 kilometres from the pilot plant site, with anomalous portable X-ray fluorescence (XRF) measurements of yttrium recorded from several RC drill holes.