Further financing – NQ Minerals enters into a US$7 million funding agreement

NQ Minerals PLC
(the “Company” or “NQ Minerals”; NEX:NQMI, OTCQB: NQMLF)
Further financing – NQ Minerals enters into a US$7 million funding agreement
This completes the cash consideration for the acquisition of the Hellyer Gold Mine

18 July 2017

NQ Minerals Plc (NEX: NQMI) (OTCQB: NQMLF), an Australia-based exploration and mining company, is pleased to announce that it has entered into a US$7 million loan facility (“Facility”) that completes the cash consideration for the acquisition of the Hellyer Gold Mine in Tasmania.

On 21 April 2017, NQ Minerals 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 previously announced, the Acquisition resulted in NQ Minerals wholly owning the 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 AU$276 million (based on the most recent management evaluation of the project’s potential).

Further financing

NQ Minerals has entered into a US$7 million loan facility (“Facility”) with the RIVI Opportunity Fund LP (“RIVI”) together with a gold purchase deed (“Gold Purchase Agreement”). 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), proportional to the other financing parties. RIVI has made a first tranche payment of US$5 million to the Company. The remaining US$2 million is conditional on the satisfaction of customary conditions precedent including the granting of securities.

The Company intends to use part of the Facility to complete the finance for the Acquisition and the remaining funds to commence project implementation activities.

Gold Purchase Agreement

Under the Gold Purchase Agreement, the Company must sell to RIVI in each calendar year:

(i) 14% of the first 22,000 ounces of Payable Gold; and

(ii) 7% of the Payable Gold in excess of 22,000 ounces.

In terms of this agreement ‘Payable Gold’ refers to the number of gold ounces that the Hellyer Gold Mine would have derived from its gold bearing output after refining and based on industry standard and arm’s length treatment and refining arrangements.

The price payable by RIVI is the lesser of US$400 per ounce of refined gold or 80% of the spot market price of gold. The amounts set out above are subject to a minimum of 100 ounces of refined gold per month once the Hellyer Gold Mine achieves commercial production (that is, produces a gold-bearing pyrite concentrate of at least 35,000 tonnes per month for two consecutive calendar months).

The Gold Purchase Agreement continues until all minerals are extracted from the Hellyer Gold Mine or 40 years after execution of the document (whichever is earlier) with an option for RIVI to extend the duration for a further ten years.

The Gold Purchase Agreement will be secured by a mining tenement mortgage and other security given in favour of RIVI.

NQ Minerals Chairman Brian Stockbridge said:

“In excess of AU$20 million has been raised to fund the cash portion of the Acquisition and the Company is now progressing the project toward production, which is expected to generate strong cashflows in 2018.”

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.

Please visit our website at www.nqminerals.com.


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)

Beaumont Cornish Limited
Roland Cornish, Chairman
+44 (0) 20 7628 3396
James Biddle

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