(ENRG.V) Dec. 6, 2018 – New Energy Metals Corp. has successfully renegotiated the agreements for the company’s Cobaltera projects, located in Chile’s San Juan cobalt district. New Energy Metals also announces that Wealth Minerals Ltd. has agreed on terms for the previously announced letter of intent, which would result in a joint venture between the companies for the continued exploration of the Cristal copper project.
The successful renegotiation of, and amendment to, the Cobaltera agreements under which the company was assigned the underlying option agreements for the Cobaltera projects will eliminate future payments to the assignors in exchange for the issuance of 5 million common shares of New Energy Metals to the assignors. The renegotiation represents a total savings for the company of USD$1,482,178 and results in the company not having to issue a further additional 3.95 million common shares in the capital of the company as previously contemplated under the agreements.
“The renegotiation of these agreements places the company in a stronger overall fiscal position, giving us increased leverage to acquire further long-life projects, while representing a substantial savings for the company,” said New Energy Metals’ newly appointed president and CEO Cesar Lopez.
Pursuant to the Cristal Letter agreement, Wealth has agreed to deliver to the company 50,000 common shares in the capital of Wealth and a 30 percent free-carried interest in the Cristal project, as consideration for the company transferring and assigning to a subsidiary of Wealth all of its right, title and interest in the Cristal project and the company’s option thereto. Upon the earn-in by Wealth Copper of the option, the initial participating interests in the joint venture are expected to be Wealth Copper as to 70 percent and the company’s wholly-owned Chilean subsidiary as to 30 percent. Wealth Copper will assume all of the company’s obligations and liabilities under the Cristal project option, including the remaining property option payments.
Subject to acceptance of the Cristal Transaction by the TSX Venture Exchange and the completion of satisfactory due diligence, the company and Wealth Copper will enter into a definitive assignment and assumption agreement.
New Energy Metals is focused on the exploration and development of energy metals in Chile. The company’s assets include the Cristal copper project located in northern Chile and several prospective cobalt projects in Chile’s past-producing San Juan cobalt district.Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.