Graphite explorer New Energy Minerals Ltd (ASX: NXE) made an announcement on 14 December 2018 stating that its application to set aside the Arena statutory demand will not be heard before 21 March 2019. Following this news, the share price of the company decreased by 2.041 percent as on 14 December 2018.
Earlier the company was served with a statutory demand notice under the Corporations Act by Arena Structured Private Investments because of the debts which are allegedly owed by New Energy Minerals Limited under the terms of the Convertible Note Deed between New Energy Minerals Limited and Arena.
In response to the statutory demand notice, the company had lodged an application pursuant to Section 459G of the Corporations Act, to set aside the statutory demand by Arena Structured Private Investments. In the application, the company had contended that it is not liable to repay principal nor any termination payment claimed by Arena, because Arena breached an essential condition of the Unsecured Convertible Note Deed by failing to pay Tranche 2B to the Company, in the amount of $1.805 Mn cash.
However now, both the parties have agreed to mediation of their disputes, including the Company’s claims against Arena. The mediation is going to take place before 31 January 2019. As per the announcement, if the parties do not settle their disputes through mediation, the Company’s application in the Supreme Court of Western Australia will proceed.
In early September 2018, the Company updated the market regarding completion of the feasibility study drilling program on the Caula Vanadium-Graphite Project in Northern Mozambique. The drilling program successfully extended the existing Caula Vanadium and Graphite deposit boundaries and it also resulted in additional large intersections of visible graphite and vanadium-bearing mica.
On 4 December 2018, the company lodged a prospectus with the ASIC and ASX in which the company offered 2,000 shares at an issue price of $0.05 per Share to raise approximately $100 before expenses, and it also offered 100,000 quoted options at an issue price of $0.001 per Quoted Option to raise approximately $100 (before expenses).
As at 30 September 2018, the net cash used in operating activities was $2.43 million, the net cash from investing activities was $8,000 and net cash from financing activities was $1.95 million. At the end of September quarter, the company was having cash and cash equivalents of $370k.
In the last six months, the share price of NXE decreased by 74.21 percent as on 13 December 2018. NXE’s shares traded at $0.048 with a market capitalization of circa $6.84 million as on 14 December 2018 (AEST 4:00 PM).
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