Chinese take $15.7m stake in Nth Uranium

A Chinese miner has take a majority 51 per cent share in Northern Uranium.

Northern Uranium and Jiangsu Eastern China Non-Ferrous Metals have signed a binding letter of intent which will see the Chinese company issued 108 million shares at 14.5 cents per share to raising $15.7 million.

Northern Uranium said the funds raised will be used to accelerate exploration of the company's uranium and heavy rare earth element prospects in WA and the Northern Territory.

Jiangsu Eastern China Non-Ferrous Metals will hold three seats on Northern Uranium's Board as a result of taking at 51 per cent stake in the company.

The company is an affiliate of East China Exploration and Development Bureau (ECE).

"This transaction represents a significant milestone for Northern Uranium. The investment by ECE will allow the company to ramp up exploration at the Gardiner-Tanami uranium project and our numerous heavy rare earths projects in the Northern Territory," said Northern Uranium's managing director George Bauk.

"Just as importantly, ECE also brings a wealth of exploration experience and skills to the company. We welcome ECE's investment and look forward to building on a relationship with them as a cornerstone shareholder."

"We are delighted to be involved with Northern Uranium, which represents a highly attractive opportunity for us to support a developing resource company with exciting prospects within the 'new energy' sector," said ECE's director general Mr Shao.