Northern Minerals to complete their DFS -> Q1 2025 and progress towards a subsequent Final Investment Decision -> 1H CY2025

Capital raise proceeds will place Northern Minerals in a strong position to execute the completion of the DFS and progress towards a subsequent Final Investment Decision, targeted to occur in 1H CY2025. Commenting on the capital raise, Adam Handly, NTU’s Chair said “We are pleased with the strong support from existing and new investors, which reflects a clear vote of confidence in the Browns Range Project. We look forward to executing on our strategy and delivering on our commitment to becoming a globally significant supplier of dysprosium and terbium – critical elements essential to driving the global clean energy transition.”    

Other factual information provided by the company has been summarised below:  

• Recent Drilling Results at Browns Range Northern Minerals announced on 30 May 2024 more exceptional heavy rare earth assays at Wolverine to inform the Browns Range Mineral Resource Update. Northern Minerals Managing Director Shane Hartwig noted: “These are exceptional assay results from this important Mineral Resource definition drilling program. Both the grade and the apparent widths reported are very encouraging”. The team will now incorporate these results into an updated Mineral Resource Estimate for Browns Range with the target to re-classify the majority of the existing Inferred resource at Wolverine into the Indicated classification. In addition to the assays, the drilling program has delivered greater orebody knowledge, particularly assisting in better interpreting the regional geological structural controls which will be invaluable when applied to future exploration drilling campaigns.

• The Browns Range Project is a globally significant heavy rare earths project containing high grades of Dysprosium (Dy) and terbium (Tb), with the project located in the East Kimberley region of Western Australia, which are essential for high-performance permanent magnets used in electric vehicles, wind turbines and specialist defence applications. Northern Minerals has a long-term supply and funding partnership with Iluka Resources (ASX: ILU) to supply Iluka’s Eneabba rare earths refinery, currently under construction.

• The Browns Range Project has the potential to be the largest Dy and Tb outside of China, as the project has a rare earths assemblage of 10% Dy and Tb, among the highest of advanced rare earth projects globally, along with the economic advantage of roughly 70% of Browns Range concentrate revenue is high value Dy/Tb at 2023 REO price levels - noted in their September 2024 presentation.

• The equity raise will ensure the Company is funded to complete the DFS in respect of the Project (now scheduled for Q1 CY2025) and, subject to project funding, targeting a Final Investment Decision (FID) (now targeted for 1H CY2025). It will also enable the Company to advance exploration initiatives to grow the resource base at Browns Range. *Tranche two of the placement is subject to shareholder approval.

• Managing Director & CEO – Shane Hartwig, has over 30 years’ experience in the finance, capital markets and project development areas including across various resource companies. He is an accomplished senior finance executive with a proven track record working as a trusted strategic corporate and commercial advisor to small and mid-cap ASX listed companies. Recently CFO and commercial lead for a proposed greenfield integrated infrastructure and mining project. Experienced ASX listed Director/Co-Sec.

• Northern Mineral’s highly experienced Board and Management Team, have extensive hands-on operational experience in exploration, mining, rare earths and commercial production development in Australia and around the world.

• Board and Management are incentivised to achieve highly accretive milestones including share price growth, FID and ultimately getting the Browns Range Project into commercial production.

About the company

NORTHERN MINERALS LIMITED (NTU) is an ASX-listed rare earths company, which owns 100% of the Browns Range Heavy Rare Earths Project in the East Kimberley region of Western Australia (the Project). The Project’s deposits are uniquely rich in the heavy rare earth elements dysprosium (Dy) and terbium (Tb).  

Dysprosium and terbium are critical in the production of dysprosium neodymium iron-boron (DyNdFeB) magnets used in clean energy, military, and high technology solutions. Dysprosium and terbium are prized because their unique properties improve the durability of magnets by increasing their resistance to demagnetisation.  

The Project’s flagship deposit is Wolverine, which is thought to be the highest-grade dysprosium and terbium ore body in Australia. The Company is preparing to bring Wolverine into production with the objective of providing a reliable alternative source of dysprosium and terbium.  

Northern Minerals is completing a definitive feasibility study for a commercial-scale operation focused on mining and beneficiating ore from the Wolverine deposit, for delivery to Iluka Resources’ (ASX: ILU) under-construction rare earths refinery at Eneabba, also in Western Australia.  

In addition to Wolverine, Northern Minerals has several additional deposits and prospects within the Project that contain dysprosium and other heavy rare earth elements, hosted in xenotime mineralisation.

DISCLAIMER: ‘The information does not constitute personal financial advice. Consult your adviser or broker prior to making any investment decision.

For further information about this company, email – shareholder@pelshare.com.au