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Shareholders to sell majority stake in New Era Minerals

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Shareholders to sell majority stake in New Era Minerals

New Era Minerals Inc. said Jan. 2 that its shareholders Guang Ju Lin and Wei Lin signed binding agreements with Hang Peng, a resident of Hunan, China, for the sale of an aggregate 58,840,932 nondiluted common shares of New Era, representing about 55.03% of the outstanding shares of the company, held directly and through controlled companies and limited partnerships.

Peng currently does not exercise ownership or control, directly or indirectly, over any common shares of New Era.

If the proposed sale is completed, Peng intends to subscribe for additional New Era common shares, pursuant to a private placement to provide working capital to the company. The number of common shares to be acquired as well as the price have not yet been determined.

Peng also intends to implement changes to the board of directors and the management of New Era to seek new business opportunities for the company, which may involve the acquisition of or merger with new business or assets.