PERTH (miningweekly.com) – The Foreign Investment Review Board (FIRB) has approved a A$30-million equity investment by Chinese coal trader Shandong Taizhon Energy’s Huatai Mining, into ASX-listed Northern Minerals.
Northern Minerals in August entered into an equity funding agreement with Huatai, under which the company would issue 230-million shares, at an average price of 13c each.
Once the transaction is complete, Huatai will become Northern Mineral’s largest shareholder, holding some 31% of the company.
The FIRB review was the only remaining condition precedent for the investment, and Northern Minerals said on Monday that the company was expecting the first A$9-million tranche by the end of October.
Following the receipt of these funds, Northern Minerals will appoint Nan Yang as a representative of Huatai to the company’s board.
The funds will allow Northern Minerals to start precommitment works for the development of the pilot plant at the Browns Range project, including mine planning, drilling, water supply, engineering design and an extension to the accommodation camp.
The 60 000 t/y pilot test plant will run for a period of three years, and will consist of an opencut mining operation. Ore will be processed through a beneficiation and hydrometallurgical pilot plant to produce 49 000 kg/y of dysprosium, and 590 000 kg/y of total rare earth oxides contained in a mixed rare earths carbonate.
Edited by: Creamer Media Reporter
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