Herdsman-based diversified explorer Northern Mining Ltd has withdrawn its prospectus, dated 6th June, citing the current volatility in the share market as the major reason.
In a statement released on its website, the company said a supplementary prospectus, dated 14th June, had been prepared for the purposes of withdrawing the offer of 18.75 million shares at 20 cents to raise $3.75 million.
The decision was made following advice from lead manager, CK Locke and Partners, and supporting brokers that a successful capital raising in the current financial environment was unlikely.
The company said no applications would be accepted and no shares would be issued under the prospectus and any application monies received would be returned to the applicants in full.
The supplementary prospectus was lodged with ASIC on the 14th June.
The company said it would have a tight capital structure with only 40.4 million shares on issue.
Of the capital to have been raised under the withdrawn prospectus, $1.7 million would have been used to fund exploration costs for its prospective nickel and gold targets east of Kalgoorlie and prospective base metal and uranium targets in the Northern Territory over a two year period.
The company's board includes executive chairman Alan Lockett and Cazaly Resources managing director Nathan McMahon as a non-executive director.
A copy of the supplementary prospectus can be found on the company's website.