Australian heavy rare earths producer, Northern Minerals Ltd has received the final AUS$5 million installment for the AUS$7.5 million convertible debt agreement, announced as part of a combined AUS$15 million placement and convertible debt issue on 23 April 2019.
The AUS$7.5 million convertible debt was undertaken with sophisticated and professional investors as defined by s708 of the Corporations Act. The convertible debt has the following terms and conditions:
- Interest rate: 10% per annum.
- Term: Repayable or convertible by 30 June 2020.
- Conversion price: AUS$0.10 per share.
Conversion conditions: At debt holders’ election, the debt can be converted into Ordinary shares, subject to the company either having sufficient authority to issue the shares or shareholder approval, whichever is applicable. An arrangers fee of 10% of the value of the Convertible Note is payable in either cash or shares (at AUS$0.05 per share), at the arrangers’ discretion, at the completion of the transaction. The convertible debt funds will be used to progress the Enhancement Initiatives at Browns Range, including ore sorting and product separation as well as strengthening the balance sheet.
Northern Minerals’ Managing Director and CEO, George Bauk, commented: “We are pleased to have received the final instalment of these funds, with plans well developed to progress the enhancement initiatives.
“The heavy rare earth sector continues to receive increased news coverage, with the price of Dysprosium now up over 65% year to date and Terbium up 42% over the same period.” Shareholders are reminded that the 1-for-13 non-renounceable entitlement offer at AUS$0.045 per share to raise ~AUS$6.95 million before costs opened on 17 June and is anticipated to close on 8 July 2019. Under the Institutional Entitlement Offer the full amount of AUS$2.66 million (before costs) has been completed and funds transferred to Northern Minerals.
Read the article online at: https://www.globalminingreview.com/finance-business/24062019/northern-minerals-completes-aus75-million-convertible-debt-agreement/