Northern Minerals Ltd (ASX:NTU) has repaid half of the debt owed to SinoSteel MECC, the engineering procurement construction (EPC) contractor for its Browns Range R&D Pilot Plant Project in the East Kimberley region of Western Australia.
There are also plans to repay the remaining $4.2 million by the end of the year with the first tranche of $2.1 million to be repaid on July 23, 2020, with the second repayment to take place on October 23, 2020.
Sinosteel is a subsidiary of Shenzen-listed Sinosteel Engineering & Technology Co Ltd.
NTU also proposes to repay $4 million to JHY Investments Pty Ltd on December 31, 2020, after the company extended the maturity date for an additional year for the convertible notes held by JHY and reduced the interest rate payable from 16% to 10% from January 1, 2020.
Northern Minerals said its indicative debt position as at June 15, 2020, was around $19.2 million.
The figure excludes any accrued but unpaid interest and assuming the full repayment (and redemption) of the $7.5 million Convertible Notes issued on June 26, 2019.
$22 million placement
In April 2020, the company completed the first tranche of its $22 million placement, issuing 450 million fully paid ordinary shares with a total value of $9 million.
Around 375 million of these shares would be issued to repay all amounts owing in respect of and redemption of the convertible notes issued on June 26, 2019, with an aggregate face value of $7.5 million.
The remaining proceeds will be used for continuing development of the company’s projects and operation of its business; for expenditure relating to the Browns Range Pilot Plant and for general working capital purposes.