The Merger of Ruby Assets Agreement (MRAA) has been amended to include the cash rather than the originally agreed 10.5 million Fura shares to be issued over a 20-month period from closing.
Both parties have also agreed to extend the closing date of the agreement from November 30, 2018, to February 28, 2019.
This has been done to allow for the satisfaction of the remaining conditions precedent, principally being a binding tax opinion from tax authorities in Mozambique and Ministerial approval.
Concurrently, New Energy has also entered into a loan agreement with Fura for the aggregate amount of $2.8 million.
This agreement allows for New Energy to be able to draw down funds prior to completion of the MRAA, for purposes of settling any claims or disputes with Arena Investors, should this be required.
New Energy Minerals managing director Bernard Olivier said: “The amendment to the agreement and the cash consideration was specifically re-negotiated due to the statutory demand received from Arena Investors and places New Energy in an advantageous position in the dispute process.
“It is also particularly important as the company enters the financing stage of its pilot plant development at the Caula Vanadium-Graphite Project.
“The board of New Energy would like to thank Fura for renegotiating the terms of the MRAA at the request of the company.”
New Energy has also agreed to sell certain gemstone processing related plant and equipment to Fura for more than $489,400 independently of the loan agreement advances.
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The loan agreement is conditional on Fura obtaining TSX Venture Exchange approval for the loan within 21 business days.
Any advance by Fura under this agreement is conditional on either: