Perth-based rare-earth minerals firm Northern Minerals on Monday announced binding commitments to raise A$43-million through a two-tranche placement to advance its Browns Range project in Western Australia.

The two-tranche placement to new and existing institutional and sophisticated investors will have an issue price of A$0.019 a share – a discount of 20.8% on the last closing share price, as well as a 22.4% discount on the five-day volume-weighted average price.

Northern Minerals will also offer a share purchase plan, aiming to raise an additional A$5-million at the same price of $0.019 per share.

Proceeds from the placement and SPP will be applied towards the completion of the definitive feasibility study (DFS), project development initiatives, exploration drilling, and working capital requirements.

The company said it would aim to finalise the DFS by the first quarter of 2025, leading to a final investment decision (FID) by the middle of next year.

Northern chairperson Adam Handley said the strong support from existing and new investors reflected 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.”

MD Shane Hartwig added that the placement enabled Northern Minerals to continue key project initiatives, seek project funding and proceed towards a FID, while also enabling the company to undertake value-accretive exploration initiatives. 

“The release of the company’s updated mineral resource estimate in the fourth quarter will be a key milestone to enable the DFS to be completed. Although our target FID date has moved, the team is using this time to complete additional key technical work programmes that will assist in ongoing technical due diligence reviews of the project, important in ensuring the production of a DFS focusing on long-term, sustainable value for shareholders.”

The Browns Range project, in the East Kimberley region of Western Australia, is uniquely rich in the heavy rare earth elements dysprosium and terbium. 

Dysprosium and terbium are critical in the production of dysprosium neodymium iron-boron, or 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 to production sourced from China. 

The DFS for a commercial-scale operation will focus on mining and beneficiating ore from the Wolverine deposit, for delivery to Iluka Resources’ under-construction rare earths refinery at Eneabba, also in Western Australia.