Last checked at 12 Jun 2023 09:13
Corcel PLC
("Corcel" or the "Company")
Sale of Wowo Gap Nickel Project
12 June 2023
Corcel Plc (London AIM: CRCL), the pan Angolan / Brazilian Oil and Gas company, with interests across battery metals mining and oil and gas announces that it is formally disputing the previously announced pre-emption of Mambare and that it has further sold its 100% interest in the Wowo Gap nickel project in Papua New Guinea, to Integrated Battery Metals Pte Ltd. ("IBM") for up to US$2.8M. This agreement supersedes that covering the battery metals joint venture previously announced on 1 March 2023, as the joint venture parties have agreed to re-organise the transaction into two separate sale transactions given the recent Angolan oil acquisition.
Highlights:
o IBM to purchase Corcel's 100% interest in Niugini Nickel Pty Ltd, direct holder of EL 1165 in Papua New Guinea and the sole license owner of the Wowo Gap nickel-cobalt project for up to US$2.8M, of which:
o US$500,000 to be paid at completion net of costs already incurred by IBM under the carried interest previously announced
o a further US$900,000 to be paid 24 months from completion
o a final US$1.4m payment payable as a profit share from the first $2.8M of production at the project
o Continues the disposal of the Company's historic mining assets as it continues its pivot to oil and gas
Corcel Chief Executive Officer, Scott Kaintz commented: "Building on our recent agreements with IBM, who have been effectively operating Wowo Gap since January, this agreement splits the sale of Wowo Gap from that of Mambare and allows a key part of the original transaction to proceed independently from the disputed pre-emption on Mambare."
Transaction Summary
The Company has agreed to sell a 100% interest in Niugini Nickel Pty Ltd, holder of EL 1165 and the Wowo Gap nickel-cobalt project. Consideration for the transaction will consist of four main parts:
o US$500,000 payable upon completion to be netted off against historic operating costs paid by IBM on behalf of Corcel during the course of 2023
o US$900,000 payable to Corcel 24 months following completion
o US$1.4m payment structured as a profit share to be paid out of the first cumulative net profits of US$2.8M of the project's production
o A 5% commission payable to Corcel for any investment or farm-in partners introduced to Niugini Nickel by Corcel for a period six months after completion
The Company's interest in Niugini Nickel was most recently held in the interim balance sheet at £1.3m and the attributable losses for the year ended 30 June 2022 were approximately £170,000.
For further information, please contact:
Scott Kaintz Corcel Plc CEO
Development@corcelplc.com
James Joyce / James Bavister /Andrew de Andrade WH Ireland Ltd NOMAD & Broker
0207 220 1666
Patrick d'Ancona Vigo Communications IR
0207 3900 230
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.