Northern Minerals Ltd. plans to raise A$20 million via a private placement of 322,580,645 common shares at 6.2 Australian cents per share.
The company entered into a subscription agreement with Baogang Group Investment (Australia) Pty. Ltd., a wholly owned unit of a Chinese state-owned company that owns steel mills in China.
Northern Minerals said Aug. 15 that it will use the funds from the placement to advance its Browns Range rare earths project in Western Australia.
The company is looking for new off-take deals for Browns Range after it recently terminated a rare earths carbonate off-take agreement with Lianyugang Zeyu New Materials Sales Co. Ltd. entered in April 2017, saying the purchaser was in breach of the sales agreement.