Northern increases SPP to $15m

Rare earths developer Northern Minerals has lifted the limit on its share purchase plan to $15 million on the back of strong demand from existing shareholders.

After initially seeking $5 million, the company increased the capital raising to $10 million on Tuesday, before again raising the limit to $15 million today.

Under the plan, shareholders can purchase up to $15,000 worth of shares at 7.8 cents each.

Northern shares closed down 3 per cent at 9.6 cents today.

Funds raised from the share plan will be used to develop the company’s Brown Range pilot plant, which aims to enhance Northern’s rare earths project in the East Kimberly.

Managing director George Bauk said the company was pleased with the support.

“The strong demand from shareholders and the additional funds raised means that we will be able to accelerate all of the enhancement initiatives recently announced and allow existing shareholders to participate in the upside of the company,” he said.