Northern Minerals has signed investor agreements to raise $22 million to develop its projects, including the Browns Range operation in Western Australia.
This news release was concurrent with Northern Minerals’ announcement that its $20 million placement with Baogang will no longer going ahead due to the Australian Treasurer’s prohibition.
The Browns Range project was placed on care and maintenance while the company waits out the coronavirus.
Northern Minerals managing director and chief executive George Bauk said the company remained committed to a long and prosperous future at Browns Range.
“Despite the recent decision to temporarily place the Browns Range pilot plant project into care and maintenance due to the impacts of COVID-19, the whole Northern Minerals team is focussed on adding value for shareholders,” he said.
“These funds (will) allow us to maintain care and maintenance, strengthen the balance sheet, complete the important ore installation works and set us up in a strong position to restart research and development test work and production.”
The share placement will comprise of four tranches, starting with an issue of more than 259 million subscription shares on or around April 24, with the remaining tranches to be issued subject to shareholder approval.
The first tranche will see shares issued at a price of $0.02 for a subscription amount of $9 million.
Northern Minerals’ indicative debt as at April 20, excluding accrued but unpaid interest, sits at around $24.3 million, with the first repayment due this October.
If the share subscription meets shareholder approval, the fourth and final tranche placement will be completed on or around July 25.