Last checked at 12 Aug 2021 07:00
Corcel PLC
("Corcel" or the "Company")
Acquisition of Wo Wo Gap Nickel-Cobalt Project
12 August 2021
Corcel Plc, a natural resource exploration and development company with interests in battery metals and flexible energy generation and storage, announces that it has signed a binding but conditional share purchase agreement with Australian-registered Resource Mining Corporation Limited (ASX: RMI) ("RMI") to acquire 100% of the issued share capital in Australian-registered Niugini Nickel Pty Ltd, which owns 100% of the Wo Wo Gap nickel-cobalt project in Papua New Guinea ("Project"). As consideration for the acquisition, the Company is releasing all liabilities and obligations in connection with its AUD 4,761,087 senior debt position in RMI.
The transaction remains conditional on RMI obtaining shareholder approval at a general meeting, which is expected to be convened by RMI shortly.
Wo Wo Gap Project Details
The Project is located 200km from the Papua New Guinea capital of Port Moresby and some 150km southeast of the Company's existing Mambare asset. The Company sees significant synergies between the two projects and sees this acquisition as a significant step in its evolution into a leading Papua New Guinea battery metal and nickel /cobalt exploration company with material scale in country and the region.
Exploration at the Project dates back to the 1950s and has consisted of multiple drilling programmes, including diamond drilling, wacker holes and ground penetrating radar activities. Project activity of late has focused on maintaining commitments for the exploration licence, including site-based activities such as maintenance of the existing infrastructure and equipment, so as to facilitate a ready state for future exploration and development which is likely to be focused on a potential direct shipping ore operation.
The Project is held through one tenement in Papua New Guinea, EL 1165, which expired on 28 February 2020 and is currently under reapplication for a further 2-year period.
In the year ended 30 June 2021 Niugini Nickel Pty Ltd had an operating loss of 501,080 Papua New Guinea Kina (approximately £100,000) .
James Parsons, Chairman, commented:
"We are delighted to have secured direct ownership of the Wo Wo Gap Nickel / Cobalt project subject to approval of RMI shareholders,which positions Corcel as a leading PNG Battery Metal exploration company with genuine scale in both the country and the wider region - this is the culmination of a key part of our long term strategy to build our presence and progress towards creating material value in Papua New Guinea.
Today's news marks further progress as we continue to develop our portfolio of high upside battery metal exploration projects alongside our low risk energy generation and storage projects in the UK. Our strategy remains to support the every-accelerating decarbonisation of the economy by operating at the intersection of battery metals and their end use in flexible energy."
For further information, please contact:
Scott Kaintz 020 7747 9960 Corcel Plc CEO
James Joyce / James Sinclair-Ford 0207 220 1666 WH Ireland Ltd NOMAD & Broker
Simon Woods 0207 3900 230 Vigo Communications IR
This announcement contains inside information under Article 7 of Regulation (EU) 596/2014.