Northern Minerals Issues 2.18 Billion Shares in $41.5M Placement to Fund Wolverine Deposit

• Raised approximately $41.5 million through issuance of over 2.18 billion shares
• Placement approved by shareholders in November 2024
• Shortfall of 78 million shares from initial placement target
• Sub-brokers accepted shares as brokerage fees, issuing an additional 58 million shares
• Funds to support Definitive Feasibility Study and development of Browns Range project

Placement Completion and Capital Raise

Northern Minerals Limited (ASX: NTU) has successfully closed the second tranche of its two-part placement, raising approximately $41.5 million through the issuance of 2.18 billion fully paid ordinary shares at $0.019 each. This capital injection follows shareholder approval at the company’s General Meeting in November 2024 and marks a significant milestone in Northern Minerals’ strategy to develop its Browns Range Heavy Rare Earth (HRE) Project in Western Australia.

While the placement fell short by roughly 78 million shares compared to the initial target announced in September 2024, the company mitigated some costs by issuing an additional 58 million shares to sub-brokers in lieu of brokerage fees. These shares, priced at the same offer price, do not contribute additional funds but align interests between the company and its intermediaries.

Strategic Importance of Browns Range and Wolverine Deposit

The Browns Range Project is uniquely positioned in the rare earths sector, hosting some of Australia’s highest-grade deposits of dysprosium and terbium, critical elements for manufacturing high-performance magnets used in clean energy technologies, defence systems, and advanced electronics. The flagship Wolverine deposit is particularly noteworthy for its exceptional grades of these heavy rare earth elements, which are essential for enhancing magnet durability and resistance to demagnetisation.

With global supply chains heavily reliant on China for these materials, Northern Minerals aims to establish Browns Range as a reliable alternative source. The funds raised through this placement will primarily support the Definitive Feasibility Study (DFS) for a commercial-scale mining and processing operation, a crucial step toward bringing Wolverine into production.

Market Context and Future Outlook

The rare earths market remains highly strategic amid growing demand for clean energy and advanced technologies. Northern Minerals’ progress is closely watched by investors seeking exposure to critical minerals with strong geopolitical and supply security narratives. The successful completion of this placement not only strengthens the company’s balance sheet but also signals confidence from institutional and sophisticated investors in the Browns Range project’s potential.

However, the shortfall in shares issued compared to the initial placement target may reflect cautious investor sentiment or market conditions at the time. Moving forward, the company’s ability to execute the DFS on schedule and secure further project financing will be key indicators of its trajectory.

Overall, Northern Minerals is positioning itself to play a pivotal role in diversifying the global supply of heavy rare earth elements, with Browns Range and Wolverine at the heart of this ambition.

Bottom Line?

Northern Minerals’ capital raise sets the stage for Browns Range’s next phase, but execution risks remain.

Questions in the middle?

• What factors contributed to the shortfall in shares issued under the placement?
• How will the Definitive Feasibility Study outcomes influence project timelines and financing needs?
• What is Northern Minerals’ strategy to navigate market volatility in rare earth prices?