In July 2019, a transaction was completion to sell NAE’s 50% share of the Redmoor Tin-Tungsten Project, located in Cornwall, United Kingdom to Strategic Minerals Plc (“SML”) for a total consideration of $5.0m as follows:
- $3.0m in cash payments between June 2019 and June 2020 payable as follows:
- $10,000 paid in June 2019 and $290,000 paid in July 2019 (total of $300,000 paid to date),
- 3 Quarterly payments of $300,000 to be paid on or before 31 October 2019, 31 January 2020 and 30 April 2020 respectively. The 31 October 2019 quarterly payment of $300,000 has now been made.
- $1,800,000 payment due on or before 26 June 2020 ,
- Interest of 5% p.a on the outstanding balance of cash payments owed to NAE ($2,700,000 as at 26 July 2019), calculated on a daily balance basis and payable at the end of each calendar quarter, and
- The above payments are secured by; a charge over 100% of SML’s shares of Cornwall Resources Limited (“CRL”), a debenture charge over CRL’s property, and, in the event of default, NAE has the option to convert any outstanding balances due to SML shares at 90% of the VWAP for SML shares in the 10 trading days prior to the issue of the notice to convert.
- $2.0m in royalty payments payable as follows:
- $1,000,000 on Net Smelter Sales arising from Redmoor production reaching A$50m, and
- $1,000,000 on Net Smelter Sales arising from Redmoor production reaching A$100m.