Northern Minerals Raises $60.5M to Advance Browns Range Rare Earths Project

A Strategic Capital Raise

Northern Minerals Limited (ASX, NTU) has successfully secured binding commitments to raise around $60.5 million through a placement of over 1.18 billion new shares priced at 5.1 cents each. The placement was significantly oversubscribed, reflecting strong investor confidence in the company’s flagship Browns Range Heavy Rare Earths Project located in Western Australia’s East Kimberley region.

This capital injection comes at a pivotal moment for Northern Minerals as it seeks to progress Browns Range towards a Final Investment Decision by the fourth quarter of fiscal 2026. The funds will not only support ongoing front-end engineering and design (FEED) activities but also enable repayment of convertible note debt, exploration programs, and operational enhancements.

Global Significance of Browns Range

Browns Range is recognised as one of the world’s most advanced heavy rare earths projects outside China, with a Definitive Feasibility Study released in September 2025 confirming its capacity to supply approximately 8% of the global demand for dysprosium and terbium. These elements are critical for manufacturing high-performance permanent magnets used in electric vehicles, wind turbines, and defence applications.

The project’s flagship Wolverine deposit is noted for its exceptionally high grades of these rare earth elements, positioning Northern Minerals as a strategic alternative supplier amid growing global supply chain concerns. The company has also secured a long-term supply and funding partnership with Iluka Resources, which is constructing a rare earths refinery in Eneabba, Western Australia, to process Browns Range concentrates.

Backing from Institutional and Governmental Partners

The placement attracted strong demand from both Australian and international institutional investors, underscoring the project’s strategic importance. This momentum is further bolstered by recent non-binding, conditional letters of interest from the Export-Import Bank of the United States and Export Finance Australia, signalling potential project financing of up to US$230 million. These developments follow the landmark Critical Minerals and Rare Earths Framework Agreement signed by the US and Australia, highlighting Browns Range’s role in allied nations’ critical minerals supply chains.

Company executives expressed optimism about the placement’s success and the broader geopolitical support. Managing Director Shane Hartwig described the capital raise as a strong endorsement of Northern Minerals’ strategy and the global significance of Browns Range. Executive Chairman Adam Handley highlighted the alignment with international efforts to secure vital mineral resources through institutional investment and government backing.

Looking Ahead

With first production targeted for 2028, Northern Minerals aims to capitalise on an anticipated global shortfall in dysprosium and terbium supply. The company’s progress towards a Final Investment Decision and the ongoing development of infrastructure and partnerships will be critical milestones to watch. The successful placement not only strengthens Northern Minerals’ balance sheet but also signals growing investor appetite for projects that underpin the clean energy transition and national security.