Mining, Minerals & Metals plc Regulatory News (MMM)

13 May 2024

Mining Minerals & Metals Plc

("MMM" or the "Company")

Georgina Energy Acquisition Update

Mining Minerals & Metals Plc ("MMM"), the investment vehicle established to undertake an acquisition of one or more businesses ‎‎(either shares or assets) that has operations involved in natural resource exploration, announces an update on the proposed all share acquisition of Georgina Energy Plc ("Georgina ‎ Energy" or "Georgina") ("Proposed Acquisition"), a UK-domiciled company with highly prospective helium, hydrogen and natural gas development assets in Australia.

The Company and Georgina have been busy with their advisory teams in recent months and they are currently finalising the Proposed Acquisition, which is expected to complete in late Q2 2024. The Company has appointed Oak Securities (a trading name of Merlin Partners LLP) as joint broker, to work alongside its existing broker and Financial Adviser, Tavira, in connection with the proposed placing of shares in the Company as enlarged by the Proposed Acquisition ("Fundraise").

Key developments and highlights:

· The Proposed Acquisition is expected to be an exciting new entrant to the London Stock Exchange and the board of MMM believes that it will provide exposure to a clear, low risk pathway to helium and hydrogen production in a top-tier natural resources jurisdiction;

· A finalised competent person's report over Georgina's key asset: Hussar has been received confirming an in-situ value of over US$60 billion from the defined net attributable 2U prospective resources of helium, hydrogen and natural gas. Combined with current, non-independently verified estimates from the Mount Winter project the Company will hold an overall in-situ value in excess of US$100 billion;

· The Company has received significant institutional interest from preliminary investor meetings in connection with the Fundraise;

· The Proposed Acquisition constitutes a reverse takeover, and ‎therefore requires ‎the publication of a prospectus for the admission of the enlarged share capital of the Company to the Official List and the Main Market of the London Stock exchange Plc ("Re-admission") which has been filed with the FCA and the Company is awaiting its approval.

The Proposed Acquisition is conditional on i) entering into definitive legal agreements; ii) completion of the Fundraise iii) approval by shareholders at a General Meeting of the Company to be convened; iv) obtaining all necessary approvals (if and where required); and v) Re-admission.

Strategic rationale for the Proposed Acquisition:

Georgina is a well redevelopment company which has adopted a low risk, differentiated strategy and the board of MMM believes there is a clear and realistic pathway to production with drilling expected to commence in Q4 2024.

Significant Gas Potential

The large-scale project is 3,951 Km² held over two project areas in Western Australia, a proven region with significant gas potential. Georgina Energy has evaluated the potential of the Hussar (EP 513) and Mt Winter (EP155) prospects to contain the required elements to yield significant helium & hydrogen accumulations. Both sites have previously been drilled and road access remains useable. Hussar, the first project to be drilled, has a potential in-situ value of US$55 billion of combined helium and hydrogen as well as US$5.24 billion in-situ value of natural gas. The area consists of 46 graticular blocks (3,574 Km²) and was previously drilled to a depth of 2040m TD in 1982. Hussar is considered by independent consultants to be one of the most potentially lucrative resource basins in the Asia Pacific region due to its significant helium, hydrogen, oil & natural gas potential. The Mt Winter-1 well was drilled in 1982 to a depth of 2,650m TD but did not penetrate the subsalt Heavitree Formation hydrogen, helium & natural gas reservoir target but reached TD in salt just above it. All 3 previously drilled wells have penetrated the Heavitree and encountered high concentrations of helium (up to 9%) and hydrogen (up to 11%). Georgina has an initial programme to complete seismic and then re-enter the existing well to develop the gases. 

Highly Experienced Management Team

The Georgina board is comprised of experienced professionals in the oil & gas exploration space with technical capacity and an expert understanding of development and sales. Anthony Hamilton (CEO of Georgina) has over 35 years' extensive experience in mining, oil & gas and exploration and production.  Mark Wallace (CFO of Georgina) has over 25 years' experience in the global financial markets. John heugh will be appointed Technical Director of Georgina on Re-admission and has over 50 years of experience and was the founding Director and MD of Central Petroleum Ltd listed on the ASX. On Re-admission, Roy Pitchford (currently Non-Executive Chairman of MMM plc) will remain with the Company as Non-Executive Director. He brings over 30 years' executive and managerial expertise and during his career in the resource development area.

Differentiated and Low Risk

Georgina adopts a low risk, differentiated strategy and is already well advanced in its exploration activities in relation to its UK peer group as it is essentially a well re-redevelopment company. There is proven gas flowing from the original drilled wells, established infrastructure for the project as well as a recognised supply chain. Both target sites have previously been drilled and the road access remains usable. Georgina intends to supply from the wellhead under off-take agreement to mitigate infrastructure costs. Given the established infrastructure and reliable supply chain, the board and management team are aiming for Georgina to become a leading global producer of helium and hydrogen.

Right Time

Georgina gives investors a chance to benefit from supply and demand dynamics. There is a global short supply of helium and significant increases in demand, including space launch usage, has led to further price increases.

Roy Pitchford, Non-Executive Chairman of MMM, commented:

"This acquisition has huge potential to create a leading hydrogen and helium producer that will compete on the global scene. Georgina has done an excellent job advancing their highly prospective and low risk projects in Australia and we now near the conclusion of the transaction at a highly opportune time in the market. We see huge global demand coming for hydrogen and already there is a supply squeeze in helium making this an ever more attractive deal for MMM.

I am pleased to note that we have had significant institutional interest from preliminary investor meetings, and I look forward to updating shareholders further in due course."

Enquiries

Georgina Energy

Tavira Financial Ltd - Financial Adviser and Joint Broker

Oak Securities - Joint Broker

Camarco - Financial PR

Notes to Editors

Georgina Energy aims to become a leading player in the global energy market and is focused on establishing itself among the top producers of Helium and Hydrogen worldwide. With a strategic approach and leveraging the experienced management team's expertise, Georgina Energy aims to capitalize on opportunities in these critical energy sectors.

The projects benefit from established infrastructure and a reliable supply chain, offering significant resource potential through low-risk, cost-effective drilling projects.

Georgina has two principal onshore interests held through its wholly owned Australian subsidiary, Westmarket O&G. The first, the Hussar Prospect is located in the Officer Basin in Western Australia and Westmarket O&G holds a 100% working interest in the exploration permit. The second, the Mount Winter Prospect, is located in the Amadeus Basin in the Northern Territory, which Georgina has a right to earn an initial 75 per cent. interest in (with the potential to reach 90 per cent.).

In line with market demand trends, Georgina Energy is well-positioned to capitalize on the growing gap between supply and demand for hydrogen and helium with the resource potential of Mt Winter and Hussar projects for their potential accumulations.

For more information visit https://www.georginaenergy.com