RE: Super RNS and10 Oct 2021 22:49
The recent GPR work at Mambare was designed to determine the location for the DSO operation for the Mining Lease. This development is likely to require US$25 – 30 million of capex and at that stage, Corcel would either be looking to bring in larger players for a JV or consider a complete disposal. Currently, the company owns 41% of the project, but given a perceived inability of BMA to fund the asset through to production, it would seem logical that the entire asset is vended into Corcel to allow for meaningful development. Chinese investor Sinom has been happy to accept Corcel’s paper, as demonstrated by the 2020 debt deal, and has now emerged as a highly supportive 12% plus shareholder. Such backing speaks volumes for being a potential source of both offtake agreements and future funding.
There is an obvious plan in progress to explore synergies with Wo Wo Gap and Mambare. In fact controlling both now makes it materially more likely that they will be brought into production either jointly or sequentially. The financial and resource savings of having them run jointly in both manpower and admin is likely to be real, across collectively geology, admin & on the ground logistics. Dealing with the PNG government as a larger player in the space, means Corcel are more likely to get the attention/access from the MRA and officials needed to take these projects forward in contrast to a smaller entity.
The degree to which Wo Wo Gap and Mambare are combined depends on a host of factors. However, putting them together as a combined PNG project would make Corcel a big player in PNG and likely ease relations with the government. There is no doubt that the synergies are pretty big here with the opportunity to cherry pick the best bits for DSO at each deposit, potentially exporting using the same logistical streams and applying revenues from one to further develop the other. In the end Corcel looks like it will acquire this quite second large nickel cobalt play for a song.
http://www.alignresearch.co.uk/corcel/corcel-go-go-for-wo-wo-nickel-cobalt-project-valuation-disparity-reaches-extreme-proportions-buy-with-tweaked-price-target-of-20-03p/
Things should start to get interesting
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