PERTH (miningweekly.com) – Rare earths developer Northern Minerals has received its first A$9-million payment from Chinese investor Shandong Taizhon Energy’s Huatai Mining.
Northern Minerals in August entered into a A$30-million equity funding agreement with Huatai, under which the company would issue 230-million shares, at an average price of 13c each.
The second and third tranches, of A$9-million each, are due before the end of November and December respectively, with an initial investment of A$3-million completed in August.
Northern Minerals said on Thursday that with the receipt of the first tranche of funds from Huatai, the company could start pre-commitment works to develop a pilot plant at the Browns Range project, including mine planning, drilling, water supply, engineering design and an extension to the accommodation camp.
“With an expectation of a final investment decision in early 2017, our project development team is moving ahead with initial site works to ensure we fulfill our strategy of achieving first production in late 2017,” said Northern Minerals MD George Bauk.
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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