Northern Minerals undertakes fresh equity raising

Northern Minerals is set to raise $20 million via a private placement, the latest in a string of significant capital raisings the rare earths hopeful has undertaken this year.

The company entered into a subscription agreement with Chinese steel mill owner Baogang Group Investment.

Shares will be issued at 6.2 cents each, a 17.3 per cent discount to its previous closing price.

The placement is subject to Australian and Chinese government approvals.

The placement represents approximately 13 per cent of the company’s existing share capital.

Funds raised will go towards advancing its Browns Range rare earths project in the East Kimberley.

Last mont, Northern Minerals announced it had entered into an agreement to raise $30 million via a private share placement, and the month prior it undertook a $21.9 million placement and entitlement offer.

In April, it launched a $15 million convertible notes raise and placement, and a month before that it commenced a $20 million share placement.

Northern Minerals is currently focusing on the commissioning ramp-up of its $56 million Browns Range pilot plant.