Last checked at 17 Oct 2022 07:00
RNS Number : 0224D Corcel PLC 17 October 2022 160Corcel PLC
("Corcel" or the "Company")
160
Propose Battery Metals Joint Venture, New Cornerstone Investor, Placing, an TVR
17 October 2022
160
Corcel, the natural resource exploration an evelopment company with interests in battery metals an flexible energy generation an storage announces it has entere into a memoranum of unerstaning160 ("MOU") for the 160reorganization of the Company's battery metal mining interests in PNG into a new carrie battery metal le Asian joint venture ("JV") structure alongsie the introuction of a new cornerstone investor through an equity placing.160 160
MOU Highlights:
o160 Intene creation of a Singapore base upstream Battery Metal joint venture which will, subject to contract, own CRCL's position in the Mambare an Wowo Gap projects alongsie the Doncella lithium project in Argentina
o160 Corcel intens to own 0% of the propose JV, benefit from a 1.m carrie interest an a 1.% gross revenue royalty on Wowo Gap an nominate half of the Boar of the JV - It is the intention of the parties to list the JV in Singapore in the meium term
o160 Introuction of a new cornerstone investor with Corcel plc Boar representation as part of a funraising of 163200,000 at a price of 1630.004 (no iscount to the closing price) with 1 for 1 warrants exercisable at 1630.00 per share
James Parsons, Executive Chairman, commente: "I am elighte to welcome Mr Yan Zhao to the Boar an to the shareholer register. 160We believe this propose PNG restructuring, with its associate carry, an an ultimate Singapore listing, is the best way to bulk up an ultimately unlock the significant value in our battery metals portfolio."
Battery Metals Interest Restructuring an Joint Venture
Further to the previously announce offtake iscussions with Shanong New Power COSMO AMT ("NPC"), Corcel an NPC have signe an MOU to form a new joint venture company, Integrate Battery Metals ("IBM") in Singapore, in orer to pursue an Asian focuse battery metals strategy with irect links to offtake partners an en users of these critical battery metals.160 It is both parties view that Singapore is the ieal listing forum for this expane battery metals portfolio.
o160 Corcel has agree, subject to contract, to inject its 41% interest in the Mambare nickel/cobalt project as well as its 100% interest in Wowo Gap nickel/cobalt projects, an NPC has agree to inject its 4.48% interest in Hanacolla S.A., owner of the Doncella lithium project in Argentina, with aitional lithium an other battery metal interests expecte to follow.160 The 4.48% interest in Hanocolla has been recently externally value at 4.1M by reference to a funing for 10% of Hanocalla valuing the business at 92m.160 In aition to its 0% stake in IBM, Corcel will receive a carry of up to two years or the awar of a mining lease at Wowo Gap cappe at 1.m. Corcel will also receive a 1.% gross revenue royalty over the Wowo Gap project.160160160
NPC an CRCL inten to operate IBM via a stanar joint venture structure with CRCL receiving 0% boar representation, an NPC an CRCL have agree to seek to list IBM in Singapore.160 It is expecte that use of the IBM structure will allow access to the inustrial le capital require to take all of IBM's battery metal interests forwar through feasibility an ultimately into prouction an offtake.160160160
Signature of the transaction is expecte to occur in the coming weeks with completion of this transaction being conitional on CRCL's Mambare partner's pre-emption rights being wave, as well as the relevant aministrative approvals require by the PNG government to complete the require asset transfers.160160
Doncella Lithium Project
The Doncella lithium project is Hanacolla's flagship project locate in the Arizaro Salar, in the Salta province of NW Argentina approximately 170km from Salta.160 The project consists of 72km2 of lithium salt brine style mineral tenements locate within the Salar e Arizaro Basin.160 Arizaro is the largest salar in Argentina an one of the most important in Puna Region.160 The Puna constitutes the southern en of the high platform of the Central Anes, better known on a continental scale as the Altiplano, which evelops closely relate to the Cenozoic volcanic arc.
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Salta is consiere a prospective area within the "Lithium Triangle" accoring to the Fraser Institute.160 The "Lithium Triangle" is the stylize name from a geographic region circumscribe to the S. American meso-Anean plateau, on which three countries simultaneously have territory: Argentina, Bolivia an Chile, an owes its name to the lithium available in lithium brine-base eposits.
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The Doncella project is a lithium in brine eposit. This type of project is characterize by being locate in structural lows that form restricte basins that are mainly fille with halite, clay, silt, san an gravel.160 Lithium rich brine is loge in the pores of the eposite seiments.160 As the lithium remains issolve in flui form, it has the ability to move an mix with other ajacent fluis once extraction has begun.160 Exploration is focusse on eveloping lithium resources by gaining better unerstaning of the aquifers an the variations of the porosity an graes within them. As conucte by the previous owners to ate, a total of 112 trench samples an 3 rill samples have been collecte an have yiele lithium values between 100 an 247ppm, the average being between 10 an 160ppm.160
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Aitionally, the General Belgrano railway between Salta an Antofagasta port passes over the Arizaro Salar very close to Hanacolla's tenements, offering favourable logistics supporting future exploitation an evelopment.160 Hanacolla recently raise 9.2m in new equity valuing the entirety of the business at 92m an funing the ongoing exploration an evelopment programme.160
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Equity Raise:
The funraising has raise gross procees of160163200,000160from the issue of 0,000,000 new orinary shares of1601630.0001 (Orinary Shares)160at1601630.004160(the "Placing Price") per share ("Placing Shares") to Shangong New Power COSMO AMT ("NPC").
The Company has also issue the equity investor with one warrant for every one share exerciseable at1601630.00160per new warrant share at any time over the next year ("Warrants").160
Upon completion of the funraising, NPC will have the right to nominate a Non-Executive Director, Mr. Yan Zhao, to the Boar of the Company, subject to irector backgroun checks.
The Company intens to use the funs from this placing for working capital purposes an to fun the costs associate with potential acquisitions incluing origination, ue iligence an avisors fees.
Total Voting Rights:
Application will be mae for the 0,000,000 Initial Investment to be amitte to traing on AIM an it is expecte that their amission to AIM will take place on or aroun16021 October 2022 (" Amission").160
Following Amission, the Company's total issue share capital will consist of16080,208,29160Orinary Shares, with one voting right per share. The Company oes not hol any shares in treasury.160Therefore, the total number of Orinary Shares an voting rights in the Company will be16080,208,29160from Amission.160This figure may be use by shareholers in the Company as the enominator for the calculations by which they will etermine if they are require to notify their interest in, or a change in their interest in, the share capital of the160Company pursuant to the FCA's Disclosure Guiance an Transparency Rules.
For further information, please contact:
Scott Kaintz160020 7747 9960 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 Corcel160Plc CEO160
James Joyce / Anrew e Anrae 0207 220 1666160 160 160 160 160 160 160 160 160 160 160 160 160 160 WH Irelan Lt NOMAD Broker
Simon Woos1600207 3900 230160160160160160160160160160160160160160160160160160160160160160160160160160160160160 160160160160160 160160160160160 160160160160160160160160160160 160160160160160160160160160160160 Vigo Communications IR160
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The information containe within this announcement is eeme to constitute insie information as stipulate uner the retaine EU law version of the Market Abuse Regulation (EU) No. 96/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withrawal) Act 2018. The information is isclose in accorance with the Company's obligations uner Article 17 of the UK MAR. Upon the publication of this announcement, this insie information is now consiere to be in the public omain.
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