trending Market Intelligence /marketintelligence/en/news-insights/trending/bdrisyxreinfi8ftfs4tia2 content esgSubNav
In This List

New Energy Minerals secures A$5M to advance Caula vanadium-graphite project

Blog

Insight Weekly: US stock performance; banks' M&A risk; COVID-19 vaccine makers' earnings

Blog

Insight Weekly: LNG exports surge; investors unfazed by inflation; neobanks drive VC funding

Blog

Essential Metals Mining Insights November 2021

Blog

[Infographic]: 2021 World Exploration Trends


New Energy Minerals secures A$5M to advance Caula vanadium-graphite project

New Energy Minerals Ltd. secured a A$5 million deal to advance the Caula vanadium-graphite project in Mozambique, comprising a A$1.5 million private placement and a A$3.5 million investment in a subsidiary.

The company will use the funds for assays, metallurgical testing, a pre-feasibility study and preparations for phase-one operations as well as for general working capital.

A recent scoping study on the Caula project delivered an after-tax net present value of US$448.8 million, at a 10% discount, with a 58.8% internal rate of return.

New Energy Minerals said Nov. 7 that it entered into a binding agreement with Hong Kong-based UBezTT International Investment Holdings (BVI) Ltd., a private investment vehicle controlled by Louis Ching.

The placement will comprise 23,076,923 shares priced at 6.5 cents apiece in two tranches, representing 15.4% of New Energy's enlarged share capital. Each share will come with an option, exercisable at 14 cents per share for 36 months.

An initial tranche will be issued on receipt of funds, while the second tranche and the options are subject to shareholder approval, with a meeting anticipated in December. UBezTT will be able to nominate two directors to the New Energy Minerals board.

Concurrent to the New Energy Minerals placement, subsidiary Balama Resources Pty. Ltd. will issue 50% of its enlarged share capital for another A$3.5 million, subject to various conditions including a five-year extension to a management and technical services agreement between Balama Resources and Regius Resources Group Ltd.

Closing is anticipated around Dec. 15, and the investor will also be able to nominate two directors to the Balama Resources board.

Regius Resources also agreed to convert A$700,000 of outstanding invoices totaling A$1 million into New Energy shares to increase its interest to 12% concurrent to the second tranche of the A$1.5 million offering.