New Age Exploration (ASX:NAE) has settled the sale of its 50% stake in Cornwall Resources Limited (CRL), the joint venture vehicle holding the Redmoor Tin- Tungsten Project in the UK, to Strategic Minerals PLC (LON:SML).
Completion of the sale came after final unconditionally binding documentation was executed by the parties.
In lieu of the original structured cash components for the remaining $3 million, Strategic will make an initial $290,000 payment, taking total cash paid to $300,000 and has agreed to an 11-month payment schedule for the balance of $2.7 million.
Payments of $300,000 will be made quarterly before October 31, 2019, January 31, 2020, and April 30, 2020, with the balance to be paid on or before June 26, 2020.
New Age Exploration executive director Joshua Wellisch said: “The settlement of NAE’s 50% holding in Cornwall will provide NAE with a strong financial position to focus on the development of its existing suite of projects and assess new opportunities that establish shareholder value.”
The interest rate on the balance of $2.7 million is 5% per annum, which is calculated on a daily balance which will be payable at the end of each calendar quarter to allow for early repayment.
Strategic has provided New Age Exploration with a charge over the company’s shares in CRL and a debenture charge over CML’s property.
In the event of a default, New Age has the option to convert outstanding balances to Strategic shares.
In May the results of a high-level mining study demonstrated that the Redmoor Tin and Tungsten deposit is amenable to underground mining using long-hole open stoping with backfilling as the mining method.
An updated preliminary economic evaluation based on the recently completed high-level mining study has also been completed by Wardell Armstrong with encouraging results.