NTU enters multiple subscription pacts to raise $20m through placement

  • Mar 18, 2019 AEDT
  • Team Kalkine
NTU enters multiple subscription pacts to raise $20m through placement

Northern Minerals Limited (ASX: NTU) operates as a mineral exploration company. The Company concentrates on the development of heavy rare earths projects, in particular, the element dysprosium in Western Australia and the Northern Territory.

The company, today on 18 March 2019, stated that it has entered into multiple subscription pacts with many sophisticated investors, for the placement of 400,000,000 fully paid ordinary shares in the company at an issue price of A$0.05 per share to raise A$20 million (before costs).

Subscription funds are to be received by the Company and the shares will be issued in various tranches as per below:

1) Tranche 1: A$10 million is to be received on or before 31 March 2019 and the 200,000,000 shares comprising Tranche 1 will be issued to various sophisticated investors either out of the Company’s existing placement capacity under Listing Rules 7.1, Listing Rule 7.1A or under the placement facility approved as resolution 11 at the shareholder meeting held on 26 February 2019. The shareholder’s approval will not be required for the issue of shares under Tranche 1; however, the Company may seek to ratify the issue at future general meetings if applicable.

2) Tranche 2: A$5 million is to be received on or before 30 April 2019, subject to receiving shareholder approval for the issuance of the 100,000,000 shares comprising Tranche 2.

3) Tranche 3: A$5 million is to be received on or before 31 May 2019 subject to receiving shareholder approval for the issue of the 100,000,000 shares comprising Tranche 3.

The Company has already proposed to hold a General Meeting in late April to seek shareholder approval for Tranche 2 and Tranche 3. A Notice of Meeting is scheduled to be dispatched to shareholders shortly.

The issue price of A$0.05 represents a discount of 17.9% to the 20-day VWAMP, a 21.1% discount to the 15-day VWAMP and a 29% discount to the 5-day VWAMP. Funds raised from the issue of the shares will be utilised for working capital purposes as well as for exploration.

The Board is also contemplating a possible Entitlement Offer on a 1-for-15 basis at a price of A$0.05 per share.

A success fee of 6% on the funds raised will be payable in shares (at $0,05 per share) or through cash to AFSL holders that have introduced funds, at the Company’s election, once the Company has received funds.

Northern Minerals Managing Director, Mr George Bauk, has said that the placement will allow the management to ramp up the exploration at the high-grade Dazzler and Iceman prospects and strengthen the balance sheet for working capital purposes.

Mr Bauk emphasised on the fact that the support for the placement has been excellent, with many parties now having a better understanding of the critical role of heavy rare earth in the electric vehicle sector.

On the price-performance front, the stock has posted the YTD return of 32.73%. The company also has posted returns of -10.98%, 19.67% & 58.70% over the past six, three & one-month period respectively. At the time of writing (18 March 2019 AEST 01:43 PM), the stock of the company was trading at a price of $0.070, down 4.11% during the day’s trade with a market capitalisation of ~$ 103.35 Mn. The stock opened the day at $ 0.077, which was also the day’s high and touched the day’s low of $ 0.068, with an average daily volume of more than 6,446,694. It had a 52-week high price of $ 0.120 and a 52 Weeks low price of $ 0.040, with an average volume of, 2,154,292 approximately.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK