NQ Minerals enters into a US$10 million funding agreement and Silver Purchase Agreement

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

27 March 2018

NQ Minerals PLC
(the “Company” or “NQ Minerals”; NEX: NQMI, OTCQB: NQMLF)
NQ Minerals enters into a US$10 million funding agreement and Silver Purchase Agreement


NQ Minerals Plc (NEX: NQMI) (OTCQB: NQMLF), an Australia-based exploration and mining company, is pleased to announce that it has entered into a US$10 million loan facility (“Facility”) with a U.S. based Private Equity firm (“Financier”) to provide further funding for the development and operation of the Hellyer Mine Project operated by its subsidiary, Hellyer Gold Mines Pty Ltd ACN 125 516 636 (“HGM”) (“Hellyer Mine Project”). The Facility attracts an annual interest rate of 12% and is repayable within three years. The Facility will be secured over the assets of the Company and its subsidiaries, proportional to the other financing parties. The Financier has made a first and second tranche payment totaling US$10 million to the Company.

The Company intends to use the Facility to finance the development and operation (including the enhancement and sustainment) of the Hellyer Mine Project.

NQ Minerals has also agreed to enter into a silver purchase deed (“Silver Purchase Agreement”). Under the Silver Purchase Agreement, the Company must sell to the Financier in each calendar year the agreed proportion, being:

(i) 30% of the first 8,000,000 ounces of Payable Silver (defined below) recovered from the Hellyer Mine Project; and

(ii) 10% of the Payable Silver when applied to the total Payable Silver thereafter for the lifetime of the Hellyer Mine Project.

In terms of this agreement, ‘Payable Silver’ refers to the number of silver ounces that the Hellyer Mine Project would have derived from its silver bearing output after refining and based on industry standard and arm’s length treatment and refining arrangements.

The price payable by the Financier is the lesser of US$6.00 per ounce of refined silver or 80% of the market price of silver. The amounts set out above are subject to a minimum of 17,500 ounces of refined silver per month once the Hellyer Mine Project achieves commercial production (that is, produces a silver-bearing lead, zinc or pyrite concentrate of at least 420,000 tonnes per annum).

The Silver Purchase Agreement continues until all minerals are extracted from the Hellyer Mine Project or 40 years after execution of the document (whichever is earlier) with an option to extend the duration for a further ten years.

The Silver Purchase Agreement will be secured by a mining tenement mortgage and other security given in favour of the Financier which will rank equally with the existing second ranking security granted by HGM to RIVI Opportunity Fund LP under the terms of its Gold Purchase arrangements. The security arrangements regarding the Silver Purchase Agreement have been agreed and are currently being finalised.

Commenting, NQ Minerals Chairman Brian Stockbridge, said: “We are delighted to have secured this further financing that will allow us to continue to develop and start operating our Hellyer Mine Project. We are excited by the potential for this project and anticipate that it will, over time, deliver significant shareholder value.”


About NQ Minerals

NQ Minerals is an Australia-based exploration and mining company, focusing on projects where past exploration work has established the presence of mineral occurrences. The Company’s management team has decades of experience in the exploration and production of gold, silver and a variety of base metals.

Please visit our website at www.nqminerals.com.

For further information, please contact:

NQ Minerals Plc
Brian Stockbridge, Non – Executive Chairman+ 44 (0) 7876 888011
Kris Kottmeier, VP Corporate Development


+ 44 (0) 20 3637 6522 (UK)

+ 1 (604) 506 6502 (North America)

Daniel Stewart & Company Plc
Richard Potts+ 44 (0) 20 7776 6596
Nikhil Varghese+ 44 (0) 20 7776 6571
Beaumont Cornish Limited
Roland Cornish, Chairman+ 44 (0) 20 7628 3396
James Biddlewww.beaumontcornish.com


IFC Advisory Ltd
Graham Herring+ 44 (0) 20 3934 6630
Tim Metcalfe


Miles Nolan

+ 44 (0) 20 3934 6630


+ 44 (0) 20 3934 6630