Further financing – NQ enters into an AU$6.5 million loan facility that will help NQ wholly own the prospective Hellyer Gold Mine in Tasmania

NQ Minerals PLC
(the “Company” or “NQ Minerals”; NEX:NQMI”)
Further financing – NQ enters into an AU$6.5 million loan facility that will help NQ wholly own the prospective Hellyer Gold Mine in Tasmania

26 April 2017

NQ Minerals Plc (“NQ Minerals” or “the Company”) (NEX: NQMI) (OTCQB: NQMLF), an Australia-based exploration and mining company, is pleased to announce that it has entered into an AU$6.5 million loan facility (“Facility”).

On 21 April 2017, NQ announced that it had entered into an agreement to acquire all of the issued and outstanding shares of Keen Pacific Limited (“Keen”), along with its wholly-owned subsidiaries Ivy Resources Pty Ltd and Hellyer Gold Mines Pty Ltd (the “Acquisition”). As announced, the Acquisition will result in NQ Minerals wholly owning the prospective Hellyer Gold Mine in Tasmania, Australia with AU$1.3 billion of revenues expected over the 10 year mine life and a post tax NPV of $276 million (based on the most recent management evaluation of the project’s potential).

Further financing

NQ Minerals has entered into an AU$6.5 million loan facility (“Facility”) from a leading New Zealand Private Equity Firm to part finance the Acquisition. The Facility attracts an annual interest rate of 12% and is repayable within three years. The Facility is secured on the assets of the Company and its subsidiaries (including Keen and its subsidiaries once acquired), proportional to the other financing parties. The Facility is conditional on the satisfaction of customary conditions precedent. The Facility also carries options over 49,000,000 shares in the Company at an exercise price of 8p per share, exercisable for five years. In addition, the lender has the right to appoint a director to the board of the Company and its subsidiaries.

The Company intends to use the Facility to finance the Acquisition.

NQ Minerals Chairman Brian Stockbridge said:

“Overall, the cash component that needs to be paid under the Acqusition is AU$20 million.  To date we have secured finance totaling AU$15 million and, as testament to the quality of the acquisition, there are a number of mining focused institutional investors and family offices that have undertaken detailed due diligence at the Hellyer site.  We look forward to updating shareholders as the remaining additional finance is secured.”

Shareholder Approval

NQ Minerals looks forward to presenting details of the Acquisition and the project to shareholders for their approval at a meeting to be held on 15 May, 2017. Notification and details will be provided to shareholders in a circular to be dispatched by 28 April 2017, including information on proxy votes for those who may not be able to attend the meeting.

About NQ Minerals

NQ Minerals is an Australia-based exploration and mining company, focusing on projects where past exploration work has established the presence of mineral occurrences. The Company’s management team has decades of experience in the exploration and production of gold, silver and a variety of base metals.

For further information, please contact:

NQ Minerals Plc    
Brian Stockbridge, Non – Executive Chairman
+ 44 (0) 7876 888011

Kris Kottmeier, VP Corporate Development
+ 44 (0) 20 3637 6522 (UK)
+ 1 (604) 506 6502 (North America)

Daniel Stewart & Company Plc    
Richard Potts
+ 44 (0) 20 7776 6596
Daphne Zhang
+ 44 (0) 20 7776 6550

Yellow Jersey PR    
Felicity Winkles
+ 44 (0) 776 932 5254
Joe Burgess
+ 44 (0) 776 932 5254