Northern Uranium (ASX: NTU) is an established Australian exploration company primarily focussed on Uranium and Rare Earth exploration and development in Western Australia and the Northern Territory.
Northern Uranium prefers local funding over Chinese investment
The Northern Uranium (ASX: NTU) binding agreement with a leading Chinese mineral exploration company, Jiangsu Eastern China Non-Ferrous Metals Investment (ECE) - an affiliate of East China Exploration & Development Bureau, has been terminated by what Northern stated as a 'mutual agreement'.
Northern pursued a rights issue as a superior funding alternative rather than the foreign investment, which has since been validated by its strong shareholder support.
Northern recently completed the A$9.5 million raising through a rights issue and the conversion of options, with the funds focused on aggressive rare earth exploration projects at John Galt and Browns Range in Western Australia, and the Gardiner-Tanami uranium project in the Northern Territory.
ECE was to acquire 108 million Northern shares at $0.145 per share, raising approximately A$15.7m.
Northern has paid a break fee of $156,627 to ECE.
Northern shares have rallied in the months since the deal was initially announced, last trading at $0.29 as the company pursues its rare earth strategy.
