Northern Minerals Ltd (ASX: NTU) shares have gone nowhere today after the company requested a trading halt prior to market open this morning. By the close of trade Thursday, the Northern Minerals share price was fetching 5.2 cents.

Why is the Northern Minerals share price at a standstill?

The Northern Minerals share price remains unchanged today after the company requested a trading halt, pending a capital raising announcement.  

Northern Minerals is yet to release details on the capital raising. However, media outlets have speculated on the potential deal.

According to an article today in The Australian Financial Review, Northern Minerals is looking to raise $20 million in fresh equity via a placement of new shares. According to the terms sent to funds, shares are being offered at 4.9 cents each, a 5.8% discount to the closing level of the Northern Minerals share price yesterday.

The article noted that funds raised would go towards a feasibility study for a processing plant at the company's Browns Range rare earths project in Western Australia and the Northern Territory. It is believed that New York-based corporate advisory outfit EAS Advisors will be handling the placement.

The Northern Minerals share price will remain in a trading halt until an announcement is released to the market, or until the start of normal trading on Tuesday 16 February.

Fast-track to commercial production

Northern Minerals is a producer of dysprosium, which is a heavy rare earth element, from its 100%-owned Browns Range project in Western Australia.

Before Northern Minerals shares entered a trading halt, the company announced it had intentions of fast-tracking its production of commercial rare earths.

According to the announcement released on 10 February, Northern Minerals aims to shave two years from its target date for commercial production at its Browns Range project.

The company's management noted that it had identified a market opportunity to target several facilities outside of China which have both capacity and capability to process a heavy rare earth xenotime concentrate.

Despite the ambitious aims, Northern Minerals will still have to meet specific criteria before being ready for commercial production, including a feasibility study.

In addition to its plans to fast-track a beneficiation-only feasibility study, Northern Minerals has committed to another batch of resource drilling to be completed before mid-year.

Based on the current Northern Minerals share price, the company commands a market capitalisation of around $230 million.

The post What's happening with the Northern Minerals (ASX:NTU) share price? appeared first on The Motley Fool Australia.

The Northern Minerals Ltd (ASX: NTU) share price is down nearly 7% today, despite a positive drilling announcement out of the company this morning.

At the time of writing, the Northern Minerals share price is sitting at 4.3 cents per share.

So who is Northern Minerals?

Northern Minerals aims to be a "principal supplier of ethically produced Rare Earth Metals and separated products from the world's largest Heavy Rare Earth Element inventory within 10 years."

The company's flagship project is the Browns Range Project in Western Australia. This site is presently being tested for deposits and prospects that contain high value dysprosium and other heavy rare earths (HREs).

First Browns Range drilling results indicate potential

In this morning's announcement, Northern Minerals reported "encouraging assay results across several targets" from the first phase of its latest exploration drilling program at the Browns Range Project.

Northern Minerals further advised that it had received the best assay results (so far) from its Toad prospect. The company plans to commence follow up drilling once the northern wet season ends. 

Northern Minerals also continues to drill holes at three other prospects: Gambit West, Dazzler North/Northwest and Wolverine West.

In early November 2020, the company first announced that it had commenced a $5 million exploration program to finish before the end of June 2021. 

What's ahead for Northern Minerals in 2021?

Northern Minerals CEO Mark Tory commented on what's coming up for the company:

Our overall strategy remains to increase the Mineral Resource and the life-of-mine potential at Browns Range to more than 20 years. This will feed into a future feasibility study for a potential commercial scale heavy rare earths operation at Browns Range.

Regarding the unveiling of today's results, he added: "Following up on these results will be one component of the second phase of our exploration drilling campaign, which we will be back on the ground to complete before the end of June."

Northern Minerals has a market cap of 203.9 million and 4.4 billion shares outstanding. Over the past six months, the Northern Minerals share price has climbed over 140%.

The post Why is the Northern Minerals (ASX:NTU) share price taking a dive today? appeared first on The Motley Fool Australia.

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has returned from its break with a move higher today. At the time of writing the index is up 0.2% to 6,081 points.

Four shares that have failed to follow the market higher today are listed below. Here's why they are in the red:

The European Cobalt Ltd (ASX: EUC) share price is down 26% to 12 cents following the release of the drilling results from the first four holes at its cobalt project in Slovakia. Unfortunately the results were weaker than expected and shareholders have headed to the exits.

The Northern Minerals Ltd (ASX: NTU) share price has fallen 8.5% to 8.6 cents after the rare earths company advised that it has raised approximately $9.7 million through equity and debt for further development of the Browns Range Pilot Plant. Approximately $4.7 million of this was raised at 7.8 cents per share, a significant discount to the last close price.

The Pushpay Holdings Ltd (ASX: PPH) share price has tumbled 4% to $3.82 despite there being no news out of the fintech company. Prior to today Pushpay's shares had more than tripled in value this year, which I believe means there's a strong chance that today's decline is related to profit taking.

The Qantas Airways Limited (ASX: QAN) share price has fallen 2% to $5.09. Today's decline could be related to improvements in the oil price over the Christmas break. US crude oil hit US$60 a barrel on Tuesday following reports of a pipeline explosion in Libya. This is the first time it has reached this level since 2015.

The post Why these 4 ASX shares started the week in the red appeared first on The Motley Fool Australia.

Rare earths miner Lynas Corporation Limited (ASX: LYC) is the top performing stock from the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) on Monday with its shares having jumped 18% to 5.9 cents per unit.

It's possible that Lynas stock has jumped as a result of news from last week regarding rival rare earths explorer, Northern Minerals Ltd (ASX: NTU). Northern Minerals managed to raise $49.5 million from the Shanghai-listed Jilen Jien, a large-scale multi-national group, in return for 33% of the explorer. The money will be used to continue the progression of its Browns Range Project which it believes could become a "globally significant source of high value dysprosium."

The news bodes well for the rare earths industry which has remained depressed due to uncertainty regarding Chinese government policy weighing on rare earths prices.

Although its shares are jumping today; investors should still be extremely cautious with Lynas Corporation. In its most recent cash-flow and activities report, management warned that it was not expecting cash flow strength to be sustained in the March quarter. This could seriously stunt its ability to repay its debts and continue as a going concern.

Given the enormous risks still facing the business, investors would be far better off looking at some of the market's safer and more attractive opportunities.

The post Here's why Lynas Corporation Limited has surged 18% today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) continues to slide, and has now dropped 0.7% in mid-afternoon trade. The big banks and insurers are leading the way down.

But several companies have gone for a gallop today, rising more than 8%. Here's our take…

Northern Minerals Ltd (ASX: NTU) has soared 14.3% to 28 cents, and is up 43% since Monday. The company received a speeding ticket from the ASX, but says it doesn't know why the shares have soared. It may be related to an announcement the company made in late August – regarding its Browns Range Project in WA. Northern Minerals says it has appointed consultants for the Feasibility Study. Browns Range holds a number of potentially commercial deposits of rare earth ores (REO).

TNG Limited (ASX:TNG) climbed 14.7% to 17.2 cents. The junior explorer today announced that it had discovered a thick graphite zone at its 100%-owned Mount Peake vanadium project in the Northern Territory. TNG says the project holds licences over 1,900 square kilometres in a highly prospective but poorly explored region. Demand for graphite is expected to soar – given its use in batteries and renewable enrgy.

Gold miner Kingsrose Mining Limited (ASX: KRM) has jumped 13.4% to 46.5 cents. Kingsrose managing director Scott Huffadine has been presenting to analysts and investors over the past two weeks. Kingsrose operates the Talang Santo mine in Indonesia, and is developing a second mine – Way Linggo close by. Talang Santo is currently ramping up to full production – expected by mid-October 2014.

Premier Investments Ltd (ASX: PMV) added 8.2%, after the retailer today reported double digit growth in earnings for the 2014 financial year. The owner of Just Jeans, Smiggle, Peter Alexander, Portmans, Dotti and Jacqui E, says all its retail brands delivered positive like-for-like growth in the second half of the financial year – something few retailers can boast.

If you're looking for a stock with a fantastic dividend, plus growth and is flying under the radar, you need to read this report…

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