AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Northern Minerals Limited today announced the $4 million convertible notes issue to one of the top 5 shareholders of the company, JHY.
In a release to Australian Securities Exchange, Northern Minerals Limited (ASX:NTU) stated that it had inked a subscription agreement with JHY Investment Pty Ltd to take up 4,000,000 convertible notes at face value of A$1.00 per note. These convertible notes have a maturity date of 31 December 2019 with the interest rate of 16.0% per annum, accruing daily and payable monthly.
Australian heavy rare earth minerals producer Northern Minerals stated that issue of 4,000,000 convertible notes had been made in two tranches. In the Tranche 1, the company completed the issuance of 3,500,000 notes to JHY, receiving $3,500,000 from that subscription. Whereas, Tranche 2 under which 500,000 notes are to be issued, remains pending for completion. The company expects to complete this issue on 31 January 2019, thereby raising further $500,000.
On conversion option front, JHY has been given a right to opt for conversion of notes into fully paid ordinary shares of Northern Minerals at a conversion price of $0.06 per share. But this conversion option has to be availed before the maturity date, i.e., 31 December 2019 and must be for a minimum of 300,000 notes at a time. However, if the shareholder has less than 300,000 notes left, then it must convert all of them together.
As per the companyâs information, JHY could be issued a maximum of 66,666,667 shares on the conversion of notes. And if the shareholder refuses to avail the option of conversion, it is required to redeem the notes not converted on or before the maturity date.
The Notes are unsecured against the assets of the company. However, Huatai Mining Pty Ltd has granted JHY security over 50,000,000 of its shares in the company securing the obligations of the company under the subscription agreement. As part of the subscription, the Company has also granted JHY 10,000,000 unlisted options for a nil issue price, exercisable at $0.09 per share with an expiry date of 31 December 2019.
Furthermore, Northern Minerals, producer of rare earth minerals, recently announced the presence of Dysprosium and other Heavy Rare Earth in the sample collected from Browns Range Project. The production of Dysprosium plays a key role in the electric vehicle market as it provides the DyNdFeB magnets used in clean energy and high technology solutions. Through the development of Browns Range Project, Northern Minerals targets to become the first global producer of Dysprosium following China.
In todayâs trading session, Northern Minerals traded at lower levels. Its stock has gone down by 1.639% to last trade at $0.060 on 17 December 2018. Further, in the past one year, the stock has witnessed a massive plunge of 35.79% while in the last three months it is down by 24.69%.
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.
