ASIC investigation required

ASIC INVESTIGATION IS REQUIRED INTO THIS:-

How can this company justify selling off the “non-rare earth assets” at what appears to be well below market value:-

Take the recent announcement from 30 August 2016: Divestment of non-rare earth asset (as is) for $1.25M cash

Additional $1.5 million cash to be received on discovery of a one million-ounce JORC-compliant Inferred Mineral Resource

http://www.asx.com.au/asxpdf/20160830/pdf/439rsy1dg5xz71.pdf

Now lets put this sale price into perspective:-

Back on 1 February 2013 Northern Minerals agreed to the sale of only the gold assets (on the same ground) for $2 million

http://www.asx.com.au/asxpdf/20130201/pdf/42csjsrfychftq.pdf

they later did not proceed with the sale of these gold assets, advising their intention to now retain these assets and to become a multi - commodity company.

So back in February 2013 Northern Minerals was ONLY selling the gold assets for $2M, now they are willing to sell BOTH the gold assets and ALL other mineral rights for $1.25M cash

HOW DO THE DIRECTORS OF NORTHERN MINERALS JUSTIFY THE LATEST SALE PRICE OF $1.25 MILLION. WHAT DUE DILIGENCE WAS DONE

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Now fast forward to 29 September 2016 Notice of General Meeting of Shareholders and Explanatory Memorandum announcement …

http://northernminerals.com.au/wp-c...2/16-08-29-Combined-Nom-And-IER-and-Proxy.pdf

Contained there in is the 12 August 2016 Stantons International Securities “Independent Report” which included an INDEPENDENT VALUATION OF THE MINERAL ASSETS OF NORTHERN MINERALS LTD dated 10 August 2016 completed by Cadre Geology and Mining Pty Ltd.

Cadre provided 3 different values of the same “non-rare earth assets” (that were just sold of $1.25 million) of Northern Minerals:-

Low $1.52Million

High $4.84Million

Preferred $2.63M

I have interpreted the “Preferred $2.63 million valuation by Cadre” as at 10 August 2016 as an indication of their independent assessment of the current market value of these same “non-rare earth assets” the directors of Northern Minerals just sold for $1.25 million (announcement 30 August 2016 [only 20 DAYS LATER] refers)

SO ONCE AGAIN I ASK HOW DO THE DIRECTORS OF NORTHERN MINERALS JUSTIFY SELLING THESE ASSETS FOR 1.25 MILLION WHEN THEY WERE VALUED INDEPENDENTLY AT SIGNIFICANTLY MORE

Now don’t tell me I am overlooking the additional $1.5 million cash to be received on discovery of a one million-ounce JORC-compliant Inferred Mineral Resource – if that ground already had a one million-ounce JORC-compliant Inferred Mineral Resource I would expect the value to be NORTH of the Cadre 10 August 2016 High valuation $4.84 million – so we (us shareholder) it appears are being ripped off blind with the sale of company assets at below market value prices.

ARE DIRECTORS ALLOWED TO SELL COMPANY ASSETS BELOW MARKET VALUE ? because to me that is exactly what appears to have occurred here – at the expense of all Northern Minerals shareholders – as demonstrated above by the information included in the Northern Minerals own announcement from 12 August 2016

So again I ask: “HOW CAN THE DIRECTORS JUSTIFY SELLING OFF THESE ASSETS AT WHAT APPEARS TO BE WELL BELOW MARKET VALUE – BASED ON INFORMATION THEY THEMSELVES HAVE RELEASED TO THE MARKET IN COMPANY ANNOUNCEMENTS”

Lind funding was ALREADY in place providing working capital so don’t tell me we were desperate for the money – money was already available from the Lind transaction.

I have discussed this sale with 8 other individual shareholders I know who have personally invested in Northern Minerals and all are very-displeased with what has occurred here.