Rare earths junior Northern Minerals has announced one shareholder has yet to divest its shareholding in the company, following yesterday’s mandated sell-off deadline.
Rare earths junior Northern Minerals has announced one shareholder has yet to divest its shareholding in the company, following yesterday’s mandated sell-off deadline.
On June 3, federal treasurer Jim Chalmers stipulated that five shareholders – all with Chinese ties – were required to sell their respective stakes in the company within 60 days.
A day later, West Perth-based Northern was subjected to a cyber security attack, although chair Adam Handley said this was not related to developments from the previous day.
“As at the close of business on September 2, Northern Minerals has been advised that a total of 448,537,944 of the shares the subject of the orders have been divested, with 165,035,638 remaining to be divested,” Northern said on Tuesday morning.
“The company understands the holder of the remaining divestment shares is in the process of seeking to dispose their holding.”
As the sell-off request was ordered by Mr Chalmers, Northern had no role into its execution, with the Foreign Investment Review Board tasked with ensuring all shareholders complied with the order.
Northern also provided an update to the market regarding Yuxiao Fund, a company which previously was its largest shareholder.
Yuxiao has sold its 500 million shares to Hong Kong-based Qogir Trading, meaning it now has no shares in Northern.
Qogir and Hong Kong Ying Tak now hold 8.45 and 8.37 per cent stakes respectively in Shane Hartwig-led Northern. The company said it intends to meet with both entities, which have become significant shareholders,
Yuxiao’s departure as a shareholder brings an eventful period to a close for the rare earths aspirant.
Early last year, the private investment company attempted to secure a 19.9 per cent stake in Northern – however its push for an extra 9.92 per cent control was quashed by Mr Chalmers.
Northern then asked for the FIRB to investigate whether a series of acquired stakes by entities with Chinese connections were undertaken in a bid to ultimately control its assets in Western Australia – namely its Browns Range project in the East Kimberley.
Yuxiao then announced it intended to serve Nicholas Curtis – the then Northern chair – with a Section 249D notice and remove him as a director from the company.
This notice was received by Northern on November 20.
On May 27, Northern told the market that Mr Curtis had resigned as the company’s chair and move into a strategic advisor role over a 12-month period.
This was announced days out from an extraordinary general meeting due to be held on June 6, where one of the items of business included a resolution that Mr Curtis be removed from the company.
While the extraordinary general meeting was cancelled, Northern’s annual general meeting went ahead – more than eight months after it was initially due to be held.
Several resolutions incurred a big protest vote, with 43.5 per cent of shareholders voting against Mr Hartwig being elected to Northern’s board.
Tao Wu, a businessman which connections to Yuxiao, narrowly missed out on being elected, finishing with a 49.1 per cent Yes vote.
Northern last traded at 2.5 cents per share.
