New Energy Minerals Ltd (ASX: NXE), today, released to the Australian Exchange the new date (Drop Dead Date) for closing of the Ruby Assets sale transaction with Fura, under the Merger of Ruby Assets Amending Agreement, from previously agreed 28th February 2019 to 31st March 2019. The company reported that the rescheduling of date is considered to receive the binding tax opinion from the tax authorities in Mozambique, and Ministerial approval.
The readerâs attention must be drawn to the fact that the Fura Gemsâ merger of Ruby assets agreement has seen a couple of changes in the past. In the December quarter 2018, the company announced to the ASX that New Energy upon closing of the Fura transaction would receive A$2.8 million in cash, against the previously agreed 10.5 million Fura shares to be issued to the company over a 20-month period from closing. In the same announcement, the company mentioned that the parties involved had agreed to change the closing date of agreement from 30 November 2018 to 28 February 2019. The change in date, was primarily done for the satisfaction of the pending conditions: binding tax opinion from the tax authorities in Mozambique, and ministerial approval.
In the same announcement, New Energy Ltd highlighted that it has entered into a Loan Agreement with Fura for the aggregate amount of A$2.8 million. The loan agreement terms allowed the company to draw funds prior to the completion of Merger of Ruby Assets Agreement (MRAA), for settling any claims with Arena Investors. The loan agreement will bear a capitalised interest at 15% per annum, and the loan is unsecured. It is to be noted that if the MRAA is terminated and the closing did not occur under the MRAA, then as per the company announcement, all the advances made by Fura to New Energy under the Loan Agreement will be repayable by New Energy with interest.
The company in its January 2019 announcement had informed the exchange that its application to set aside the Arena statutory demand would not be heard before 21 March 2019. The parties had not resolved their disputes through mediation.
In a separate development, New Energy Ltd on 8th February 2019, announced that it had entered into a binding Share Sale and Purchase Agreement (SSPA) with Auspicious Virtue Investment Holding Limited for the sale of New Energy of all its remaining shares in Balama Resources Pty Ltd. Balama is the subsidiary of NXE, and through this subsidiary, NXE held its interest in the Caula graphite and vanadium project. The company release also highlighted that the SSPA was subject to some conditionâs precedent including a favourable assessment by an Independent Expert and approval of the SSPA by the NXE shareholders.
The stock price has slumped by 70.00% and 46.00% in the past six months and three months respectively (as on 01 March 2019).
The shares of NXE were trading at A$0.028 on ASX, up by 3.704%, (At the close of trading session on Tue 05 Mar 19) .
New Energy Minerals Ltd (ASX: NXE) has a market cap of $4.07 million, and the stock has noted the 52-week low price of A$ 0.026 and the 52-week high price of A$0.360. The company has an EPS of -0.578 AUD.
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