Australian rare earths developer, Northern Minerals Ltd
(ASX:NTU), has signed a non-binding Memorandum of Understanding (MOU) with Sinosteel Equipment & Engineering Co Ltd. This MOU is for the delivery of the Browns Range Pilot Plant in the north of Western Australia.
Northern Minerals chose Sinosteel to be the engineering, procurement and construction (EPC) contractor for this dysprosium project, with construction expected to begin next year.
Sinosteel has agreed to defer 20% of payments for 24 months, with a right to convert this into Northern Minerals ordinary shares.
The contract size for the Browns Range Pilot Plant is estimated at $60 million.
Northern Minerals posted a net loss of $6.7 million at 30 June 2016.
