NAE Successfully Concludes Sale of Lochinvar Metallurgical Coal Project

New Age Exploration (NAE) has announced the signing of a binding share sale agreement (SSA) with Paladar Trading Ltd (Paladar) for the sale of 100% of the issued capital of its wholly owned subsidiary, Lochinvar Coal Limited, incorporated in the UK. This transaction encompasses the transfer of licenses comprising the Lochinvar Coal Project in the UK, specifically CA11/EXP/0515/N, CA11/UND/0176/N, CA11/EXP/0573/N, and CA11/UND/0191/N. The sale marks a strategic move for NAE to streamline its portfolio and focus on core assets, while providing Paladar with access to promising coal exploration opportunities within the UK.

Under the terms of the share sale agreement (SSA), New Age Exploration will receive a nominal cash consideration of A$1.00 upon execution of the agreement with Paladar Trading Ltd (Paladar). The completion of the transaction is contingent upon fulfilling conditions precedent, including Paladar providing necessary information for notifying the UK Coal Authority about the change of control resulting from the sale. Approval from the Authority without imposing conditions or with satisfactory terms, along with obtaining requisite third-party, board, shareholder, and regulatory approvals, are essential for lawful completion of the transaction as outlined in the SSA.

Following the completion of the share sale agreement (SSA), Lochinvar will grant New Age Exploration and its successors, as well as permitted assigns, a perpetual A$1.00 per tonne royalty. This royalty applies to the first 15,000,000 tonnes of any minerals, ores, or concentrates extracted from the licenses associated with the Lochinvar Project that are sold or otherwise disposed of. This arrangement ensures ongoing compensation to NAE based on production volumes, reinforcing a financial benefit tied to the extraction and sale of minerals from the project licenses.

Upon the fulfillment or waiver of conditions precedent, the parties involved in the share sale agreement (SSA) plan to finalize a definitive royalty agreement concerning the A$1.00 per tonne royalty at the completion of the SSA. This transaction enables New Age Exploration to strategically allocate resources towards its primary gold and lithium assets situated in Central Pilbara, Western Australia, and New Zealand. By divesting the Lochinvar Project, NAE aims to streamline its operations and concentrate efforts on advancing its core projects, thereby enhancing operational focus and potential for future growth in key resource-rich regions.

Joshua Wellisch, Executive Director of NAE, announced the sale of Lochinvar Coal Limited as a strategic decision aimed at positioning NAE to potentially earn up to A$15 million in royalties from future coal production under Paladar's development of the project. He highlighted that this transaction allows NAE to concentrate on advancing their promising gold and lithium projects in Central Pilbara, Western Australia, and New Zealand. Wellisch emphasized these regions as pivotal for significant growth opportunities and the potential creation of substantial value for the company.