New York (HedgeCo.net) – New America Energy Corp. has signed an agreements for a non-brokered financing arrangement of up to US$3,000,000 with NY hedge fund Fairhills Capital Offshore Ltd. The financing allows the Company to obtain capital to execute its growth strategy. The financing agreement allows the Company to issue and sell up to $3,000,000 worth of its common stock to Fairhills Capital. In addition, the company entered into a loan agreement with Fairhills for US$200,000 which is due by September 28, 2012 and carries a 2% annual rate of interest.
It is expected that the proceeds from the financing will be used to fund completion of a geophysical survey on the Clayton Ridge lithium project, additional exploration programs, make payments in respect of additional mineral rights and for general corporate purposes. Rare earth minerals such as lithium remain in high demand and there is a highly charged political climate surrounding these resources. There is a large political wave encouraging non-Chinese based rare earth resources such as the leases New America Energy currently owns in addition to our future acquisition plans.
Rick Walchuk, New America Energy Corp. CEO, said, “The Company had various choices for obtaining capital and we felt this was our best option for management and our shareholders. This financing will now allow us to push forward with our exploration plans and we expect to provide an update by the end of the month.”
In connection with the financing agreement, we also entered into a registration rights agreement datedMarch 28, 2012, whereby we agreed to file a Registration Statement on Form S-1 with the Securities and Exchange Commission within twenty-one (21) days of the date of the registration rights agreement and to have the Registration Statement declared effective by the Securities and Exchange Commission within one hundred and twenty (120) calendar days from March 28, 2012.
New America Energy Corp. is a Nevada-based mineral exploration company engaged in the acquisition and exploration of mineral properties in the continental United States. Currently the company controls approximately 5600 acres in Nevada.
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