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.