LAS VEGAS, April 12, 2012 /PRNewswire/ -- New America Energy Corp. (OTCBB: NECA) is pleased to announce the signing of agreements for a non-brokered financing arrangement of up to US$3,000,000 with Fairhills Capital Offshore Ltd ("Fairhills Capital," the "Investor"). 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 dated March 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.
About Fairhills Capital:
Fairhills Capital is a New York-based hedge fund that invests equity capital into public companies worldwide. The firm pursues investment opportunities in mirco and small-cap companies that have a strong management team and the ability to implement their business plan. Since 2009, Fairhills Capital has invested in over 250 public companies in various sectors.
FORWARD LOOKING STATEMENT
This announcement is not an offer to sell any New American Energy Corp. ("NECA") shares or related securities. Offers for any given security are made only through applicable offering circulars and related documents filed with the SEC pursuant to the Securities Act of 1933 or the Securities Exchange Act of 1934. Certain statements contained herein and subsequent oral statements made by and on behalf of NECA may contain, "forward looking statements." Such forward looking statements are identified by words such as "intends," "anticipates," "believes," "expects," and "hopes" and includes, without limitation, statements regarding the completion of a geophysical survey of the company's Clayton Ridge property. Forward-looking statements express our expectations or predictions of future events or results. They are not guarantees and are subject to many risks and uncertainties. There are a number of factors beyond our control that could cause actual events or results to be significantly different from those described in the forward-looking statements. Any or all of our forward-looking statements in this report or in any other public statements we make may turn out to be wrong. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise.
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SOURCE New America Energy Corp.