Event non-ATF Mobile

Northern Minerals Limited (ASX: NTU) operates as a mineral exploration company. The company, today on 20 March 2019, has come out with an update that as per the previously announced $20 million placement, the Company has received initial funds of $3.5 million as part of Tranche 1. The remaining funds for Tranche 1 are due before 31 March 2019.

The shares have been issued to various investors out of the company’s existing placement capacity which is available under the Listing Rule 7.1A prescribed by the stock exchange. These funds garnered from the issue of the shares will be deployed for the working capital needs. As per this Listing Rule 7.1A, 70,000,000 shares were issued under the placement which represents approximately 4.71% of the ordinary shares on issue in the Company, resulting in dilution to the existing shareholders by that amount. These shares were issued for cash consideration, and the Company conducted the placement rather than a pro-rata issue or another type of issue in which existing security holders would have been eligible to participate as it was considered to be the quickest, most efficient and most certain method of raising funds in the circumstances. The placement was not underwritten; however it was facilitated by a third party, and a fee of 6% of the total funds raised was payable. Moreover, the company incurred miscellaneous expenses including listing fees and legal fees in connection with the placement.

As per the interim financial report for the half year ended 31 December 2018, the net loss of the Company for the half year ended 31 December 2018 was $17.85 million (2017: $9.63 million) and was mainly due to the significant change in activities for the period in relation to the development of the pilot plant at Browns Range and the commencement of the testing phase. Total revenue and other income increased to $8.91 million (2017: $3.57 million) due to the recognition of increased research and development rebates and government grants over the period in which the costs are incurred in which they are intended to compensate.

The Company’s cash reserves at the end of the half-year totalled $1.0 million compared to $10.4 million as of 30 June 2018. The movement in cash reserves was due to the finalisation of the construction of the Pilot Plant and commencement of the testing phase.

On the price-performance front, the stock has posted the YTD return of 34.55%. The company also has posted returns of -5.13% over the past six months. At the time of writing (20 March 2019 AEST 4:00 PM), the stock of the company is trading at a price of A$ 0.07, down by 5.405% during the day’s trade with a market capitalisation of ~A$ 104.77 Mn. The stock opened the day at A$ 0.073 reached the intraday high of $ 0.074 and touched an intraday low of $ 0.068, with daily volume of ~ 4,302,602. It had a 52-week high price of $ 0.120 and a 52 weeks low price of $ 0.040, with an average volume of, 2,269,487 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.

 

   
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