Mozambique: New Energy Minerals advised of one-month extension to ruby merger agreement closing date

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Mozambique: New Energy Minerals advised of one-month extension to ruby merger agreement closing date

10:16 CAT | 06 Mar 2019

New Energy Minerals Ltd (ASX:NXE) has been advised of a one-month extension to the closing date of the Merger of Ruby Assets Amending Agreement with Fura Gems Inc (CVE:FURA).

This agreement covers disposal of New Energy’s non-core ruby assets in Mozambique.

Fura Gems has notified New Energy that the extension of the ‘Drop Dead Date’ to March 31, 2019, will allow for satisfaction of outstanding conditions precedent.

Awaiting government decisions

The primary conditions, which are outside the control of the parties, are receipt of a binding tax opinion from tax authorities in Mozambique, and Ministerial approval.

Last November, the parties agreed that New Energy would receive $2.8 million in cash from Fura rather than the originally agreed 10.5 million Fura shares.

New Energy also agreed to sell certain gemstone processing related plant and equipment to Fura for more than $489,400 independently of the cash payment.

Source: Proactive Investors