New America Energy is a mineral exploration company engaged in the acquisition and development of mineral properties in the continental United States. The company currently controls approximately 5,600 acres of land in Nevada which are believed to rich in lithium brine. Lithium has been in high demand in recent years.
The company today announced the signing of agreements for a non-brokered financing arrangement of up to $3 million with New York-based hedge fund, Fairhills Capital Offshore Ltd. The arrangement allows New America Energy to issue and sell up to $3 million of its common stock to Fairhills Capital. In addition, the company entered into a loan agreement with Fairhills for $200,000, which is due by September 28, 2012, and carries a 2% annual rate of interest.
This financing was necessary for New America Energy to execute its growth strategy. It is expected that the proceeds will be used by the company to fund completion of a geophysical survey on the Clayton Ridge lithium project, fund additional exploration programs, and acquire additional mineral rights along with other corporate projects.
Bank financing for this type is typically very difficult for smaller companies like New America Energy to obtain, so the company’s management sought out other sources of funding. The company’s CEO, Rick Walchuk, said “The company had various choices for obtaining capital and we felt this was our best option for management and our shareholders.”
For more information about New America Energy Corporation and its US-based lithium projects, please visit the company’s website at www.newamericaenergycorp.com
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