Australian heavy rare earths producer Northern Minerals Ltd. received commitments to raise A$27 million, it said Oct. 15.
Northern Rare Earths SYL High-tech Co. Ltd. unit NRE Industrial Group Ltd. agreed to buy 240,404,040 shares in four tranches for A$25 million by Dec. 31.
Under the first and second tranche, NRE will subscribe to 11,111,111 shares at 9 cents apiece. It will subscribe to another 100 million shares at 10 cents per share under the third tranche and 118,181,818 shares at 11 cents under the final tranche.
NRE will hold about a 17.2% interest in Northern Minerals following completion of the transaction.
Additionally, Northern Minerals executed a subscription agreement with a private sophisticated investor to sell 22,222,222 shares at 9 cents apiece to raise A$2 million by Oct. 31.
Northern Minerals will use the proceeds to advance development and accelerate exploration efforts at the Browns Range heavy rare earths pilot plant project in Western Australia and for general working capital.
The company produced the first rare earth carbonate through the Browns Range pilot plant after the start of commissioning in June and outlined plans to add an ore sorting circuit to the facility in the second quarter of 2019.