NORTH077 Annual Report 2020 V5.2 DIGITAL

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Ore Sorter: The ore sorting system installed at the Pilot Plant.
demonstrated the effectiveness of these measures
during a particularly heavy wet season. This project
should be completed over the course of the next
couple of years and permanently improve access
over subsequent wet seasons.
Exploration focus increased during the course
of the year. The Company aims to continue to
fund exploration programs over the next 12 to
18 months to endeavour to increase the existing
resources and reserves for a potential full scale
operation. A $5 million drilling program was
conducted during the June 2021 quarter and the
Company has committed to spending just over $10
million for the 30 June 2022 financial year.
Simon Pooley was appointed as General Manager
Geology following the resignation of long time
Exploration Manager Robin Wilson. Robin was
instrumental in the setting up of the Company,
the relationship built with the local indigenous
community and of course the discovery of our rare
earth deposits at Browns Range. I personally would
like to thank Robin for his 15 years of service and
commitment to the Company and wish him well in
all his future endeavours. We welcome Simon to
the executive team and also congratulate long time
employee Kurt Warburton on his appointment as
Exploration Manager.
There were no shipments during the year as a result
of COVID-19, the partial start-up of the pilot plant
and a change in focus in relation to batch processing
testwork through the plant.
The other main financing activities to highlight for
the Company in the 2021 financial year in addition
to those noted above, are as follows:
• In addition to the $20 million placement in
February 2021, the Company received a further
$6.57 million in the first quarter of the 2021
financial year completing the $22 million capital
raising announced on 20 April 2020.
• In November 2020, the Company received a
further $8.7 million for its 2020 financial year
refundable Research and Development tax
offset for its eligible R&D work.
• The $4 million convertible note held with JHY
was due to mature on 31 December 2019. The
Company successfully negotiated an extension
of the maturity date on the convertible notes
for a further year. Following the receipt of
the ATO refunds, the Company immediately
reduced its debt with the early repayment of
the outstanding convertible note.
NORTHERN MINERALS _ ANNUAL REPORT 2021