DJ NQ Minerals PLC Further Investment in Tasmania Energy Metals
RNS Number : 9742H
NQ Minerals PLC
06 August 2019
6 August 2019
NQ Minerals Plc
(the "Company" or "NQ Minerals")
Further Investment in Tasmania Energy Metals
NQ Minerals Plc (NEX: NQMI) (OTCQB: NQMLF), a mineral processing, exploration and mining company is pleased to announce that it has made a further strategic investment in private Tasmanian mining company, Tasmania Energy Metals Pty Ltd ("Tasmania Energy Metals"), to enhance the Company's operations and prospects.
As previously announced, NQ Minerals and Tasmania Energy Metals entered into a Convertible Loan Instrument for GBP150,000 where NQ Minerals could elect to convert into Tasmania Energy Metals equity. NQ Mineral's initial investment in Tasmania Energy Metals was expanded in July 2019, with a second GBP150,000 committed. On July 31, 2019, further to an amendment contained in a Deed of Variation, NQ Minerals has gained the right to invest an additional GBP150,000 into a third Convertible Loan Instrument with the same terms and conditions as those announced on 5 June 2019.
Under the amended agreement, Tasmania Energy Metals has extended NQ Minerals' exclusivity period up to 31 October 2019. During this period NQ Minerals has the right to acquire an option to acquire all of Tasmania Energy Metals' assets, including the nickel-cobalt exploration and mining licenses and 100% control of the integrated minerals processing facility that is being developed. The option would have a term of 9 months and could be exercised by the issue of Ordinary Shares in the Company to a value of GBP5.5 million.
As part of this further strategic investment Tasmania Energy Metals and NQ Minerals will continue work on developing their plans for an integrated facility. This facility would utilise the main by-product from the treatment of the pyrite/precious metals concentrate produced from the Hellyer Mine ("Hellyer"), being sulphuric acid, in the production of nickel and cobalt salts for sale into the Electric Vehicle battery market. Sulphuric acid is the largest single cost in the treatment of lateritic nickel-cobalt deposits. The facility would also enable NQ to directly recover the precious and base metals contained in its pyrite/precious metals concentrate. Economic modelling completed over recent months suggests that this will enhance returns from the Company's pyrite concentrate stream.
The Convertible Loan has a repayment term of three years and carries no interest. NQ Minerals has the discretionary right to convert the Convertible Loan into shares of Tasmania Energy Metals at any point during the three-year term.
About NQ Minerals
NQ Minerals is an Australia-based mining company which commenced production in Q4 2018 at its flagship Hellyer Gold Mine. The Company anticipates strong cash-flow and profitability from Hellyer and has a portfolio of exciting exploration prospects. The Company's management team has decades of experience in the exploration and production of gold, silver and a variety of base metals. Please visit our website at www.nqminerals.com.
Competent Persons Report
The Resource information in this announcement is based on information (third party consultants) compiled by Mr. Roger Jackson, an Executive Director of the Company, who is a 20+ year Member of the Australasian Institute of Mining and Metallurgy and a Member of Australian Institute of Company Directors. Mr. Jackson has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration results, Mineral Resources and Ore Reserves'. Mr. Jackson consents to the inclusion of the data contained in relevant resource reports used for this announcement as well as the matters, form and context in which the relevant data appears.
For further information, please contact:
NQ Minerals Arden Partners Plc IFC Advisory Ltd Brian Stockbridge Corporate Finance Financial PR Non - Executive Chairman Ruari McGirr, Ciaran Graham Herring, email@example.com Walsh Tim Metcalfe + 44 (0) 787 688 8011 (United Dan Gee-Summons +44 (0) 203 934 6630 Kingdom) +44 (0) 207 416 5900 Colin Sutherland Chief Financial Officer firstname.lastname@example.org + 1 (416) 452 2166 (North America)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact email@example.com or visit www.rns.com.
(END) Dow Jones Newswires
August 06, 2019 02:01 ET (06:01 GMT)