Northern Minerals Ltd. said March 18 that it plans to raise A$20 million at 5 cents per share for working capital and to fund exploration at the Browns Range rare earths project in Western Australia.

The company has entered into subscription agreements with sophisticated investors for 400 million fully paid ordinary shares to be issued in three tranches by May.

A rights issue on a 1-for-15 basis is also under contemplation by the board, the company said.

Managing Director George Bauk said the placement will allow the company to ramp up exploration at the Dazzler and Iceman prospects.