MetalNRG PLC - natural resource investing and exploration company - Resolves not to proceed with planned Lake Victoria Gold Ltd acquisition, announced October 20. On December 24, the company announced a variation agreement with Lake Victoria Gold and has since been working to reassess the transaction and complete further due diligence. Says the original attractiveness of the deal's value is now "significantly diminished" and the firm is "not satisfied that certain aspects of tenement ownership can be resolved with the certainty needed to proceed in the near term."
Chief Executive Rolf Gerritsen: "We have worked tirelessly on the [Lake Victoria Gold] transaction, however, we have concluded that it is not possible to bring LVG into production, as our plans called for, within 12 months, or at close to the budget originally presented and accordingly we have decided not to proceed. This is disappointing news but the board set prudent criteria for acquisitions to create near term shareholder value and we feel that we can no longer support the LVG proposition."
Current stock price: 0.79 pence; down 7.1% on Wednesday
Year-to-date change: down 6.5%
By Anna Farley; annafarley@alliancenews.com
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Metalnrg Plc (MNRG)