Payment by Huatai Mining delayed until January 31
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Emerging heavy rare earths play, Northern Minerals (ASX:NTU) announced on Tuesday morning that it had agreed to grant Huatai Mining, an enterprise related to the Australian investment arm of Chinese coal producer Shandong Taizhong Energy, an extension in relation to an $18 million payment (previously due January 10, 2017) that will facilitate the company’s commitment to establish a pilot plant for the production of dysprosium at its Browns Range project.
While this payment should have originally have been made in 2016, the delay had resulted from recent policy changes by the State Administration of Foreign Exchange of China (SAFE), restricting the ability of Chinese entities to affect foreign currency transactions. Under the terms of the extension agreement, Huatai should make the payment by January 31.
Northern Minerals divests non-core Northern Territory exploration licenses
In a separate but related transaction given that it involves a strengthening of NTU’s cash position, the Central Land Council has approved a tenement sale agreement whereby Northern Star ASX listed gold producer (ASX: NST) will purchase a package of exploration licences in the Tanami region of the Northern Territory for $1.25 million.
The transaction will also result in NST gaining the gold exploration rights at Northern Minerals’ Boulder Ridge rare earth project in the Tanami region.
Commenting on these recent developments, Northern Minerals Managing Director, George Bauk said, “Our focus is on the development of Browns Range and in particular, the Browns Range pilot plant development in 2017, and the sale agreement with Northern Star allows us to maintain the focus on this high quality dysprosium project”.
By way of background, NTU is focused on the delivery of heavy rare earth (HRE) element dysprosium as it moves to develop a large landholding in Western Australia and the Northern Territory that is highly prospective for this element.
NTU is an early stage exploration company and investors considering this stock should seek independent financial advice.
Should the Browns Range project be successfully developed, NTU would be the first significant world producer of dysprosium outside of China. Dysprosium is an essential ingredient in the production of dysprosium neodymium iron-boron magnets used in clean energy and high technology solutions.
The location of the Browns Range project is shown below.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
