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.
READ: New Age Exploration reveals positive mining study on Redmoor project
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.
READ: New Age Exploration signs final documents for $5 million Redmoor sale
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.