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Northern Minerals maintains strong balance sheet, facilitates R&D loan repayment

A further $5 million has been received as part of the $20 million placement during March 2019.

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A total of $8.5 million has been received as part of a $15 million share and convertible note subscription

Northern Minerals Ltd (ASX:NTU) has repaid amounts owing to Innovative Structured Finance CO LLC (ISF), the company’s research and development financier, in relation to amounts advanced under an R&D loan facility for the 2018 Australian tax year.

The amount was paid using subscription funds received from the $20 million placement announced in March 2019 and the $15 million share and convertible note subscription announced in mid-April 2019.

The ISF secured loan agreement provided for separate loan facilities for the 2017, 2018 and 2019 Australian tax years, allowing earlier access to the company’s anticipated research and development tax cash refund entitlement from the Australian Taxation Office.

No amounts remain owing by the company under the 2017 loan facility and amounts owing for the 2019 loan facility (US$2.493 million as at April 30, 2019) are due on December 31, 2019.

READ: Northern Minerals secures $3 million to advance heavy rare earth project

Northern Minerals’ managing director George Bauk said: “We are extremely grateful to ISF for both the support in providing the research and development facility as well as agreeing to vary the repayment date following delays in processing the tax return.

“While we are disappointed with the delay in processing the tax return, the support from investors for the recent equity issues has allowed us to move forward with our plans to cement ourselves as a reliable supplier of quality heavy rare earths, critical for the electric vehicle revolution.”

To date Northern Minerals has received $13.5 million during April 2019:

  • $5 million received under tranche 2 of the $20 million placement;
  • $7.5 million received under the share subscription component of the $15 million subscription; and
  • $1 million received under the convertible note component of the $15 million subscription.

Remainder of subscriptions funds to be received later this year

The remainder of subscription funds to be received under the $20 million placement are due by May 31, 2019, and the remainder of subscription funds to be received under the convertible note component of the $15 million subscription are due later today ($1.5 million) and on June 21, 2019 ($5 million).

The company will continue to work with the ATO and its advisers to expedite finalisation of the 2018 R&D cash refund claim.  

Quick facts: Northern Minerals Ltd

Price: 0.06 AUD

ASX:NTU
Market: ASX
Market Cap: $153.33 m
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