Northern Minerals has completed a $5 million share placement to fund development of the Browns Range heavy rare earths project in the Northern Territory.
The placement was preiced at 20 cents per share and lead-managed by Bell Potter Securities.
Northern Minerals’ major shareholder, Conglin Yue, will increase his stake in the company to 19.9 per cent by signing up for $3 million worth of shares.
Managing director George Bauk said the company was working towards announcing a maiden JORC resource at its Browns Range project next month.
“We are very pleased to see the placement well supported, and look forward to the next phase of development for our HRE assets,” Mr Bauk said.
“We are on track to deliver a maiden JORC resource at Wolverine by the end of this year, which will be a great outcome given we have moved from first drill hole to resource status in 17 months.
“The additional funds will be used to finalise the JORC resource and develop our scoping studies for the Wolverine prospect, as well as the ongoing exploration and development of our other exciting HRE prospects across the Browns Range project.”
At close of trade today, Northern Minerals shares were down 6.6 per cent, trading at 21 cents.
