New Energy Minerals has signed a binding agreement with Auspicious Virtue Investment Holdings for the sale of its remaining 50% stake in Balama Properties Pty Limited in Mozambique, the Australian company said in a statement issued on Friday.
The statement added that after the formal conclusion of the deal, Auspicious Virtue Investment Holdings, an investment vehicle owned by Louis Ching, will hold all of the shares representing the share capital of Balama Properties.
New Energy Minerals announced on 7 November, 2018 it had reached an agreement with Ching under which this investor acquired the 50% stake through Auspicious Virtue Investment Holding Limited, a company incorporated in the British Virgin Islands.
Balama Properties was the subsidiary company through which New Energy Minerals controlled its interests in the graphite and vanadium project in northern Mozambique and no longer had any active involvement in that mining project.
The statement said the deal will involve payment of 7 million Australian dollars, which the Australian company previously said was the best value that could be achieved by the sale of that stake.
A study of the Caula mining concession owned by Balama Properties Pty Limited found that the two phases of the project would require an investment of 167.6 million Australian dollars to produce 120,000 tonnes of graphite and 204,000 tonnes of vanadium concentrate per year. (macauhub)