Ashurst has advised Australia Conglin International Investment Group Pty Ltd (Conglin) on the entering into a number of transactions with Northern Minerals Limited (NTU), including the acquisition of a cornerstone interest in a large scale Heavy Rare Earth Project and the underwriting of rights issue.
Conglin has entered into the following transactions with NTU which will secure funding to enable NTU to advance its Browns Range Heavy Rare Earth Project:
- The purchase of a 16% interest in the Browns Range Rare Earth Project for A$26 million, including off-take agreements – subject to shareholder approval.
- The purchase of Gardiner-Tanami gold assets for A$2 million – subject to shareholder approval.
- Underwriting of a A$26.5 million rights issue to be undertaken by NTU.
- Placement of A$760,000 to maintain current percentage holding in NTU.
NTU is focused on development of REE, with a large and prospective landholding in Western Australia and the Northern Territory.
The Company’s flagship project is Browns Range, where it has a number of prospects with high value, Heavy Rare Earth Elements, in xenotime mineralisation. In particular, the mineralisation includes high levels of dysprosium and yttrium, which are in short supply globally.
Lead Ashurst partner on the matter, Simon Brown, said: “We are very happy to assist Conglin with another key investment in the rare earths sector in Australia.”
The Ashurst team included Simon Brown, senior associate Ben Warne and lawyer Louise Alford.
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