TSXV: NEM
URUMQI, XINJIANG, PEOPLE'S REPUBLIC OF
CHINA, April 21, 2016 /CNW/
- New Era Minerals Inc. (the "Company") announces that
it has closed the first tranche of its non-brokered private
placement (the "Private Placement") announced in the
Company's news release dated January 8,
2016, issuing 4,974,266 common shares of the Company (the
"Shares") to Mr. Lin Guangju,
a director of the Company, at a price of Cdn$0.20 per Share and raising proceeds of
Cdn$994,853.20.
The proceeds raised from the Private Placement will be used for
general corporate and working capital requirements.
The Shares are subject to a four month hold period expiring on
August 9, 2016.
The Private Placement constitutes a related party transaction
under Multilateral Instrument 61-101 Protection of Minority
Security Holders in Special Transactions ("MI 61-101").
The Company relied upon exemptions from the valuation and minority
shareholder approval requirements of MI 61-101 available pursuant
to sections 5.5(b) and 5.7(1)(b) of MI 61-101, as the Company is
not listed on a senior specified stock exchange and the Private
Placement raised proceeds of less than Cdn$2,500,000.
The first tranche of the Private Placement closed shortly after
the completion of the share purchase transaction between Mr.
Lin and Cheng Kam On, previously the
controlling shareholder and former Chairman of the Company,
pursuant to which Mr. Lin acquired beneficial ownership of
51,333,333 common shares of the Company. As a result of this
transaction and the Private Placement, Mr. Lin holds approximately
65.98% of the issued and outstanding shares of the Company.
About New Era Minerals Inc.
New Era Minerals Inc., through its wholly-owned subsidiary,
Haijin International Group Limited, owns 95% of Xinjiang
Yongkun Mining Co. Ltd. ("Yongkun"). Yongkun's
principal activities are the exploration, evaluation and
development of mineral property interests in the PRC, including
Yongkun's 100%-owned Suyeke North nickel property located in
Tuoli County, Tacheng Area,
Xinjiang-Uyghur Autonomous Region, PRC.
On behalf of the Board of Directors of
NEW ERA MINERALS INC.
Sun Tian Xiang
Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE New Era Minerals Inc.