The placement with BGIA, a wholly-owned subsidiary of a Chinese state-owned entity that owns steel mills in China, is for the issue of a total of 322,580,645 fully paid ordinary shares at an issue price of 6.2 cents per share.
BGIA has informed the company that it has agreed with the Australia Foreign Investment Review Board (FIRB) to further voluntarily extend the statutory deadline for the Treasurer to make a final decision in relation to the transaction to April 17, 2020.
As a result, the company has agreed to extend the condition precedent satisfaction deadline under the BGIA subscription agreement from April 15, 2020 to April 17, 2020 to factor in the new FIRB decision deadline.
Browns Range Pilot Plant
Northern Minerals intends to use the funds raised towards progressing project enhancement initiatives for the Browns Range project, including ore sorting, product separation and increased exploration.
The company has completed practical completion of the pilot plant for the project and commenced pilot plant production of heavy rare earth carbonate.
The Pilot Plant Project will continue to assist the company evaluate the economic and technical feasibility of mining at Browns Range and will provide the opportunity to gain production experience and surety of supply for offtake partners.