Strategic Investor, Equity Placement & JV Partner for Caula
- Agreement with a strategic investor group led by Mr. Louis Ching, a highly influential Hong Kong-based businessman with extensive business interests in China and South Korea
- $1.5 million placement in NXE, in two tranches at 6.5 cents (A$0.065) per fully paid ordinary share totalling approximately 23 million shares
- $3.5 million project level investment and incorporated joint venture through subscription for new fully paid ordinary shares in Balama Resources Pty Ltd (presently a wholly owned subsidiary of NXE and which holds 80% of the Caula Vanadium-Graphite project) to acquire 50% of its post-issue shares
- Settlement of Tranche 1 of the placement by NXE consisting of 17.4 million shares (~$1.1 million) on/before Tuesday 6 November 2018 under the Company's existing ASX Listing Rule 7.1 placing capacity
The detailed terms of the Agreement are set out in Appendix 1 to this announcement.
The Agreement was entered into with UBezTT International Investment Holdings (BVI) Ltd, the private investment vehicle of Mr. Louis Ching (the "Investor"). Mr.Ching has extensive experience in commodity trading and business development in the People's Republic of China ("PRC") as well as several other countries in both Asia and Africa. Mr. Ching is the largest shareholder, Chairman and Managing Director of PT International Development Corporation Ltd ("PT International"), a Hong Kong-listed company (HKG:0372).
PT International is a diversified investment holding company with interests in a registered Hong Kong-regulated asset manager, oil port and storage facilities in the PRC, and is engaged in trading of commodities including copper cathodes and nickel briquettes and investment in other high growth investment projects. Mr. Ching is also a director and Deputy President of STX Corporation a South Korean-listed company (KRX:011810) with principal activities engaging in the trading of non-ferrous metals including zinc, nickel and stainless steel, as well as the provision of shipping and logistics services on a global basis.
Dr. Bernard Olivier, Managing Director of New Energy Minerals commented: "This Agreement is an important step forward for NXE in fast-tracking the world-class Caula Vanadium-Graphite project towards development. Mr. Ching's access to both debt and equity capital throughout Asia, coupled with his extensive experience in commodity trading, will significantly assist in financing the Caula Project, but also in securing offtake agreements in the short term once the project is in production. The Company welcomes Mr. Ching as a strategic investor in New Energy Minerals and looks forward to working with him to move the Caula project into early cashflow."
Mr.Louis Ching director and controlling shareholder of UBezTT International Investment Holdings commented: "We are very excited to make this strategic investment in New Energy Minerals and the Caula Vanadium-Graphite project. We were attracted to this investment by what we believe is a unique opportunity to achieve near-term production of vanadium and graphite, as well as by the quality and experience of the NXE Board and Management team. We look forward to working closely with the Board to bring our extensive commodity trading experience and networks in Asia to this project."
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About New Energy Minerals Ltd
The Company is currently fast tracking its world-class Caula Vanadium-Graphite project in Northern Mozambique, located along strike from the Syrah Resources Ltd (ASX:SYR) Balama Project, with first cash flows targeted for H2 of 2019 from trial mining operations. New Energy Minerals' Caula project hosts a JORC (Measured) vanadium-graphite resource of 22 Mt @ 0.37% V2O5 (0.2% cut-off) and 13.4% TGC (8% cut-off) for 81,600 tonnes of vanadium pentoxide (180 million pounds) and 2.93 Mt of contained graphite.
New Energy minerals has a highly experienced Board of Directors, management, finance, exploration and geological team, with a 15-year track record of investment and successful project development in Mozambique and the Africa region. The Company aims to become a major provider of vanadium and graphite, both key components used in battery production.
STX Corporation Co., Ltd.
New Energy Minerals Ltd