logo-loader
New Energy Minerals Ltd

New Energy Minerals secures $5 million to fast-track Caula Vanadium Graphite Project

With the scoping study completed, New Energy will apply the funds to fast-track the development of Caula.

Caula Vanadium Graphite Project
New Energy’s graphite deposit is one of the highest grades in the world

New Energy Minerals Ltd (ASX:NXE) (FRA:GGY) has completed the strategic investment and joint venture transaction with Hong Kong-based investor UBezTT International Investment Holdings (BVI) Ltd.

UBezTT’s largest shareholder is the strategic investor and Hong Kong-listed PT International Development Corporation Ltd’s (HK:00372) chairman and managing director Louis Ching.

READ: New Energy Minerals’ ambitions in Mozambique supported by Louis Ching’s UBezTT

Pursuant to the transaction, New Energy completed a $1.5 million placement in two tranches to UBezTT at 6.5 cents per share for a total of 23 million shares, which is a premium to the current share price.

In addition to the placement, a $3.5 million equity investment by UBezTT in New Energy’s wholly-owned asset-holding subsidiary Balama Resources Pty Ltd has been concluded in return for 50% of the enlarged capital of Balama.

New Energy holds an 80% interest in its flagship Caula Vanadium-Graphite project in Mozambique through Balama.

New Energy managing director Bernard Olivier said: “We are pleased to have completed this transaction and we welcome Mr Ching’s investment into New Energy.

“With the scoping study now completed, we look forward to applying these funds to fast-tracking the development of the Caula Vanadium Graphite Project”.

READ: New Energy Minerals highlights Caula study economics as it targets early cash flows

New Energy’s graphite deposit at the Caula project has one of the highest grades in the world, with up to 28% total graphitic carbon.

The vanadium assets include a 22 million tonne measured resource grading 0.37% vanadium oxide at a 0.2% cut-off for 81,600 tonnes of contained vanadium.

New Energy plans to become a supplier of vanadium as world demand for vanadium to be used in vanadium redox flow batteries (VRFBs) goes from 3,000 tonnes last year to between 25,000 and 30,000 tonnes by 2025.

READ: New Energy Minerals amends ruby sale agreement to encompass $2.8 million cash payment

UBezTT director and controlling shareholder Ching recently said: “We are very excited to make this strategic investment in New Energy Minerals and the Caula Vanadium-Graphite Project.

“We were attracted to this investment by what we believe is a unique opportunity to achieve near-term production of vanadium and graphite, as well as by the quality and experience of the NXE board and management team.

“We look forward to working closely with the board to bring our extensive commodity trading experience and networks in Asia to this project.”

Quick facts: New Energy Minerals Ltd

Price: $0.02

Market: ASX
Market Cap: $3.67 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of New Energy Minerals Ltd named herein, including the promotion by the Company of New Energy Minerals Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Mustang Resources shifts focus to graphite and vanadium

Vanadium is another metal that has in the past received little attention but has undergone a huge price surge over the past two years, as China tightens its standards around the strength of steel and the battery revolution continues. Mustang Resources (ASX: MUS) is an Australian listed...

on 26/7/18

3 min read