Northern Minerals secures funding to continue Heavy Rare Earth drilling in northern Australia
Post Date: 26 Jun 2013 Viewed: 384
Northern Minerals has defied market conditions to secure USD 4 million in interim funding from major shareholder Australian Conglin International Investment Group, allowing its Browns Range Heavy Rare Earth Project work program in northern Australia to continue uninterrupted.
A 20,000 meter drill program is currently underway at Browns Range targeting the expansion of the current JORC Resource at the Wolverine deposit and new resources at Gambit West and Area 5.
Work on environmental and native title approvals, process flow sheet optimization and project design is also underway as part of the Browns Range Scoping Study.
The USD 4 million loan from ACIIG is in addition to the non recourse interest free USD 4 million loan provided by ACIIG to Northern Minerals in April and is repayable on 20 December 2013.
The additional interim funding is required due to Northern Minerals decision to extend its fundraising timetable by seeking shareholder approval in regards to the current Rights Issue to raise about USD 26.5 million.
Northern Minerals shareholders will meet on 28 June 2013 to vote on the proposed underwriting of the rights issue by ACIIG. Browns Range straddles the border between Western Australia and the Northern Territory.
It contains a number of prospects with high value Heavy Rare Earths in xenotime mineralization. In particular, the mineralization includes high levels of dysprosium and yttrium, which are in short supply globally.