02/04/2013 - 14:50

Northern secures funds to start drilling

02/04/2013 - 14:50

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Northern secures funds to start drilling

Northern Minerals has signed up for a $4 million loan which will allow it to begin a major drilling program at its Northern Territory heavy rare earths project next month.

Northern Minerals announced today it had secured the interest free, non-recourse loan from Australia Conglin International Investment Group, the company’s largest shareholder.

The loan will provide a short-term bridge to facilitate the drilling programs ahead of the completion of Northern Mineralspreviously announced $58 million financing package for the Browns Range project.

The funding package includes a $26.6 million rights issue to shareholders, fully written by ACIIG.

The company has extended the closing date of the rights issue to May 3.

Managing director George Bauk welcomed the signing of the new finance package following the decision to extend the rights issue timetable.

“this non-recourse loan facility now gives us added short-term funding certainty to move ahead with our resource drilling program next month, and we are confident of achieving results that will drive value for our shareholders,” Mr Bauk said in a statement.

“The interest free loan reaffirms the commitment of our funding partner and major shareholder to the development of the Browns Range project and demonstrates ACIIG’s confidence in the Northern Minerals team.

At close of trade today, Northern Minerals shares were down 3.1 per cent, trading at 15.5 cents. 

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