31/07/2014 - 15:18

Northern Minerals secures $6m for Browns Range

31/07/2014 - 15:18

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Northern Minerals has secured $6 million in bank finance to fund the completion of a feasibility study for its Browns Range heavy rare earths project on the Western Australia-Northern Territory border

Typical landscape at the Browns Range project area.

Northern Minerals has secured $6 million in bank finance to fund the completion of a feasibility study for its Browns Range heavy rare earths project on the Western Australia-Northern Territory border.

The company today announced it had received a credit approved offer from Macquarie Bank for the funds, which will be made available via a draw-down facility.

The facility will be offset by Northern Minerals’ 2013-14 research and development rebate, which is expected to be received before the end of the year.

Northern Minerals managing director George Bauk said the facility added to the company's funding flexibility and would allow it to complete a feasibility study for the Browns Range project.

"It provides further confidence for our work programs over the next six months, and maintains our pathway to production by 2016," Mr Bauk said in a statement to the ASX.

The Browns Range project covers more than 3,500 square kilometres across the WA and NT borders.

Northern Minerals holds all but three tenements at the project, with those three tenements being explored in joint venture with Toro Energy.

The area is considered highly prospective for heavy rare earths mineralisation.

At close of trade today, Northern Minerals shares were up 3 per cent, at 16 cents.

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