Tranche 2 face value reduced to $2.1 million from $4 million
Agrees Amended Terms with Arena Investors
This will see the Company split Tranche 2 into two parts, thereby reducing the amount of the end-May 2018 (Tranche 2) drawdown of convertible notes from A$3.8 million (face value of A$4 million) to A$1.995 million (face value of A$2.1 million) and deferring the balance of the original Tranche 2 dawdown until later in June or July 2018. Details of the amendments are listed in Appendix A (see link below). The overall financial commitment by Arena Investors LP to the Company has not changed.
Mustang Managing Director Dr. Bernard Olivier said: "The continued strong support from Arena, a major global institutional investor managing in excess of US$750 million, is testimony to the quality of Mustang's Montepuez Ruby and Caula Vanadium-Graphite projects. The reduction in the original Tranche 2 quantum to be drawn end of May 2018 will result in less potential equity dilution for existing shareholders, but does not adversely affect the funding of the Company's planned project activities in June and July 2018."
About Arena Investors
Arena is a global investment firm and merchant capital provider that seeks to generate attractive risk-adjusted and uncorrelated returns by investing in a highly diversified portfolio across the entire credit spectrum. Based in New York City, Arena employs a team of 42 professionals and was formed in partnership with The Westaim Corporation, a publicly traded Canadian holding company focused on the financial services industry. See www.arenaco.com.
To view Appendix A, please visit:
About Mustang Resources Ltd
New Energy Minerals Ltd is an ASX-listed company (ASX:MUS) focused on the development of the Caula Vanadium-Graphite Project in Northern Mozambique, located along strike from the Syrah Resources Ltd (ASX:SYR) Balama Project. In July 2018 New Energy Minerals announced a maiden vanadium mica-hosted JORC Measured Resource for Caula of 22Mt at 0.37% V2O5 for 81,600 tonnes of contained vanadium pentoxide. The Company concurrently announced a 317% increase in its JORC Graphite Resource to 21.9Mt at 13.4% Total Graphitic Carbon ("TGC") (8% cut-off), for a total of 2,933,100 tonnes of contained Graphite, all in the measured category.
The Company has a highly experienced board and management team with a 15-year track record of investment and successful project development in Mozambique and the Africa region. With the aim to become a key provider of vanadium and graphite, both key components used in battery production.
Mustang Resources Ltd