Northern Minerals Limited (ASX: NTU), an Australian company focused on heavy rare earths, has announced it has secured binding commitments from new institutional and sophisticated investors to raise approximately $60.5 million (before costs) through a placement. The placement involves the issue of 1,186,998,295 new fully paid ordinary shares at $0.051 per share. The company owns 100% of the Browns Range Heavy Rare Earths Project in the East Kimberley region of Western Australia. The project’s deposits are uniquely rich in the heavy rare earth elements dysprosium and terbium.
The placement price represents an 11.1% discount to the five-day volume-weighted average price (VWAP) of Northern Minerals shares up to and including 22 October 2025. The company reported that the placement was heavily overbid, indicating strong support from both domestic and international institutions. Settlement of the new shares is expected on 31 October 2025, with allotment scheduled for 3 November 2025. All new shares will rank equally with existing fully paid ordinary shares.
The proceeds from the placement will be used to advance the company’s 100%-owned Browns Range Heavy Rare Earths Project towards a Final Investment Decision. Funds will be specifically allocated to progress FEED programs and contract negotiations, repayment of convertible note debt, working capital and financing costs, exploration programs, project funding, legal and advisory costs, further enhancement of staffing, IT and systems development, and site access and facility upgrades. Subject to project funding, Northern Minerals is targeting a Final Investment Decision by Q4 FY26, with first production targeted for 2028.
Managing Director and CEO of Northern Minerals, Shane Hartwig, expressed his delight at the overwhelming support for the placement, highlighting the addition of new, high-quality institutional investors as a strong endorsement of the company’s strategy and the global importance of Browns Range. He also acknowledged the hard work of the Northern Minerals team over more than a decade in positioning Browns Range for development.
