25 Nov

Agreement to Sell Tanzania Coal Interests for US$2.0 million

EXECUTIVE SUMMAR Y Intra Energy Corporation Limited ( ASX: IEC) (“ IEC ” or the “ Company ”) is pleased to announce that it has reached an agreement to transfer ownership of Intra Energy Tanzania Limited ( “ IETL ” ) , which holds the Company’s Tanzanian Coal i nterests, to Mirambo Mining Limited ( “ MML ” ), a Tanzanian company. The transaction is subject to receiving approval from the Fair Competition Commission ( “ FCC ” ) of Tanzania and the shareholders of IEC. MML has advised that they will also give the Go vernment of Tanzania the opportunity to match the terms of the Sale and Purchase Agreement ( “ SPA ” ) agreed between IEC and MML under similar conditions should they so desire. The transaction consists of 100% of the shares in IETL being transferred for US$ 2.0 m illion (which includes settlement of loans from IEC to IETL), paid in two equal tranches, the first having now been received by IEC and the second tranche within 90 days upon IEC shareholder approval. Commenting on the divestment of IETL, Managing Director, Ben Dunn, said: “ This sale confirms IEC's previously stated ambition in 2019 to exit from the production of fossil fuels and transition into the exploration, development and operation of mineral properties in Australia and Africa. IEC will now fo cus on its recently granted copper - gold exploration lease in NSW and its investment in gold exploration in Mozambique, as well as identifying opportunities in the battery and new energy mineral sectors. Negotiations have been conducted in good faith and we thank MML for their willingness to embrace this opportunity and bring a prime resource of coal under Tanzanian ownership. The Directors would like take this opportunity to thank our loyal shareholders who have supported the C ompany throughout this trans ition period . ” The Company is awaiting confirmation from ASX as the application of Listing Rules 11.1.2, 11.1.3 and 11.2 to the proposed transaction and the divestment is subject to the Company obtaining any approvals required by ASX . An Extraordinary Gen eral Meeting of IEC shareholders will be called as soon as feasible to approve the divestment in due course . Ag reement to Sell Tanzania Coal Interests for US$2.0 mil lion ? Bindi ng s ale agreement for sale of Intra Energy Tanzania Limited for US$2.0 million cash , to be received in two tranches , subject to conditions precedent ? Firm Commitments for two tranche placeme nt to raise $1.5 million (be fore costs) to fund exploration on exis ting assets and assess new opportunities Page | 2 Corporate Head Office:Level 40, 2 Park Street, Sydney 2000 AUSTRALIA www.intraenergycorp. com. au The Purchaser and its principals have been subject to KYC by the Company’s lawyers and its Principals are well known to IETL having provided co n tractual mining services for several years. AUSTRALIAN MINERAL EXPLORATION OPPORTUNITIES As the C ompany exits the production of fossil fuels in Afr ica, it will now concentrate on base and precious metal opportunities in Australia, with a particular focus on the new energy metals . The company h a s previously announced that it had been granted the highly prospective exploration licence (EL9314) near the town of Louth in Western New South Wales. The Talowla Project (“ Talowla ”) lies to the north of the Cobar Basin , a major copper, base metal and g old production area, hosting mines such as CSA (Glencore) , Tritton (Aeris Resources) , Peak and Hera (Aurelia Metals) , and the Mallee Bull and Southern Nights deposits (Peel Mining) . Talowla sits in the western Lac h lan Fold Belt, which is considered a pr ime exploration and development target area by geologists for gold and copper, demonstrated by the recent out standing drilling results at the likes of Aeris Resources ’ Constellation and Aurelia Metals ’ Federation dep o sits. Previous airborne and ground EM surveys have identified several high ranking “walk - up” drill ready targets, which according to the previous work “are the highest priority targets recommended for drill testing within EL9314”. Based on work done by I EC’s consultant geologist, there are so lid indications that the area around Louth could host similar mineralisation to that of Cobar, with the EM t argets similar to that which led to the discovery of Aeris’ Constellation deposit. The C ompany will now wo r k closely with stakeholders in order to expedite what we believe to be, a very exciting exploration project. PLACEMENT DETAILS The Company is ple ased to announce that that it has received firm commitments from sophisticated investors to subscribe for a p l acement of approximately 18 7 .5 million fully paid ordinary shares (“ Shares ”) in the Company at an issue price of AU$0.0 08 per Share to raise gross proceeds of A$ 1.5 mil lion (before costs) in a two tranche (“ Placement ”). Subject to shareholder approval, br o kers assisting with the offer will be i ssued 15 million options, 7. 5 million exercisable at $ 0.012 and 7.5 million exerciseable at $0.016 on or before three years from the issue date . The Placement proceeds combined w ith the sale proceeds from IETL will be used for exploration activities on t he Company’s existing assets and to assess new exploration opportunities. The Placement has been strongly supported by existing shareholders and introduced a number of new sophisti cated and professional investors to t he register. Page | 3 Corporate Head Office:Level 40, 2 Park Street, Sydney 2000 AUSTRALIA www.intraenergycorp. com. au Shares issued under the P lacement will be settled in two tranches, with 57,603,050 Shares to be issued under the Company’s ASX LR 7.1 placement capacity and 129,896,950 Shares to be issued subject to share holder approval at a general meeting to be sough t as soon as practical . T his ASX announcement has been approved by the Managing Director on behalf of the board of Intra Energy Corporation Limited. For further information please contact: Shareholder Enquiries Ben Dunn Managing Direct o r Intra Energy Corporation Limited info@intraenergycorp.com.au www.intraenergycorp.com.au
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