not good news for loyal shareholders....

NORTHERN MINERALS RAISES A$10 MILLION FOR THE FURTHER DEVELOPMENT OF ITS HEAVY RARE EARTH PROJECTS IN 2012
The Directors of Northern Minerals Limited ("Northern Minerals" or the "Company") are pleased to announce it has completed a share placement to raise A$10 million (“Placement”) to fund exploration and the further development of its Heavy Rare Earth (HREE) Projects in northern Australia.
The Placement includes up to 22.727M fully paid ordinary shares at an issue price of $0.44 per share to professional and sophisticated investors, raising up to A$10 million, before costs.
Bell Potter Securities Limited was the lead Manager to the Placement.
The placement will be made in accordance with the Company's available 15% capacity pursuant to ASX Listing Rule 7.1. The new shares will rank equally with existing Northern Minerals’ ordinary shares quoted on the ASX. Settlement of the new shares is expected to occur on Thursday 8 March 2012.
Northern Minerals Managing Director George Bauk said the funds raised will be used to continue work at the Browns Range and John Galt HREE Projects, as well as for working capital.
“A priority will be the diamond drilling program for targets at the Wolverine and Gambit prospects which we expect to commence in May, as well as the employment of additional exploration staff to boost our current team,” Mr Bauk said.
“We are targeting a JORC resource in the third quarter of 2012, and will be continuing to advance our scoping studies, environmental work and our metallurgical studies in line with our proposed path to production by 2015,” Mr Bauk said.
The Company anticipates the trading halt request currently in place will now be lifted to allow trading to recommence.