Australia

Northern Minerals SPP raises A$9.98 million to advance Browns Range project

Northern Minerals Ltd (ASX:NTU) has raised A$9.98 million in a strongly supported share purchase plan (SPP) with funds for continuing development of the companys projects and operation of its business centred on the Browns Range Heavy Rare Earth Project in northern WA.

The SPP follows completion of tranche-1 of the companys total A$22 million placement to various sophisticated investors on April 28, which raised cash proceeds of A$6 million before costs.

This resulted in NTU repaying A$3 million of the amounts owing on the A$7.5 million convertible notes issued on June 26, 2019.

Strong response

The company was very pleased with the strong response to the SPP and received applications above the targeted amount of A$5 million (before costs).

NTU's board decided to accept applications beyond the A$5 million target rather than scale back applications under the SPP.

Funds to progress development

Once subscription funds have cleared, Northern Minerals expects to issue 499.02 million shares, which will rank equally with exiRead More – Source