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Secures $19.95m Funding From Institutional Investor
Secures $19.95m Funding From Institutional Investor
Sydney, Jan 8, 2018 AEST (ABN Newswire) - Mustang Resources Ltd (ASX:MUS) (FRA:GGY) (OTCMKTS:GGPLF) is pleased to announce that it has secured a A$19.95 million funding facility under a convertible note facility (Convertible Note Deed) with a leading US institutional investor.

Funding in conjunction with a one for five non-renounceable entitlement issue to existing shareholders to fund the further development of the Montepuez Ruby and Caula Graphite Projects

Key Points

- Arena Investors LP, a major US institutional investor with more than US$750 million in assets under management on behalf of its clients and affiliates, commits to invest net A$19.95 million in Mustang under a multi-tranche convertible note facility

- Funds to be drawn down in seven tranches with the first tranche of A$1.9 million (subject to conversion restrictions) to be received on signing the convertible note deed

- Follow on tranche of A$3.8 million (subject to shareholder approval) available to the Company in May 2018

- Balance of A$14.25 million will be available in five further draw-downs of A$2.85 million over two years, subject to shareholder approval

- Opportunity for existing shareholders to participate through a one for five non-renounceable entitlement issue at 2.6 cents per share to raise up to A$4 million

- Funding arrangement ensures that Mustang is financed for further planned exploration and development work on its Montepuez Ruby and Caula Graphite Projects in Mozambique

The Convertible Note Deed, with convertible notes having a face value of A$21 million, has been signed with Arena Investors LP (Arena), a US-based institutional investor with more than US$750 million in assets under management on behalf of its clients and affiliates.

Under the terms of the Convertible Note Deed, Arena has agreed to invest up to a net A$19.95 million (face value A$21 million) through an unsecured convertible note facility, to be drawn-down in seven separate tranches as follows:

- A$1.9 million (face value A$2 million) to be received upon signing of the Convertible Note Deed (with notes subject to conversion restrictions) with the convertible note to be issued (together with any shares issuable upon conversion) under the Company's existing placement capacity;

- A$3.8 million (face value A$4 million) (subject to shareholder approval) for the follow on tranche which may be drawn by the Company 4 months after the first tranche issue date; and

- A$2.85 million (face value A$3 million) (subject to shareholder approval) for each of the remaining five tranches, with 3 to 4 months minimum between draw downs thereof. Each tranche has an 18-month term. The Company today also announces that it will also be offering shareholders a one-for-five (1:5) non - renounceable rights issue to eligible Shareholders on the designated record date (to be confirmed) to raise up to approximately A$4 million (before costs) at an offer price of 2.6 cents per share (Entitlement Issue).

To view the release, please visit:

About Mustang Resources Ltd

New Energy Minerals Ltd is an ASX-listed company (ASX:MUS) focused on the development of the Caula Vanadium-Graphite Project in Northern Mozambique, located along strike from the Syrah Resources Ltd (ASX:SYR) Balama Project. In July 2018 New Energy Minerals announced a maiden vanadium mica-hosted JORC Measured Resource for Caula of 22Mt at 0.37% V2O5 for 81,600 tonnes of contained vanadium pentoxide. The Company concurrently announced a 317% increase in its JORC Graphite Resource to 21.9Mt at 13.4% Total Graphitic Carbon ("TGC") (8% cut-off), for a total of 2,933,100 tonnes of contained Graphite, all in the measured category.

The Company has a highly experienced board and management team with a 15-year track record of investment and successful project development in Mozambique and the Africa region. With the aim to become a key provider of vanadium and graphite, both key components used in battery production.



Managing Director:
Christiaan Jordaan
T: +61-2-9239-3119

Media & Investor Relations:
Paul Armstrong
T: +61-8-9388-1474

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