Exercise of Debt Acquisition Option

RNS Number : 4050D

Corcel PLC

28 October 2020

 

Corcel PLC

("Corcel" or the "Company")

Exercise of Debt Acquisition Option

28 October 2020

Corcel Plc, ("Corcel" or "the Company"), the natural resource exploration and development company with interests in battery metals and flexible grid solutions, announces that it has exercised its option to buy AUD 3.05m of debt in Resource Mining Corporation Limited ("RMI"), as first announced on 7 April 2020, and most recently referenced on 26 October 2020.  Additional announcements will be made as appropriate.   

Option Details

Execution of the option entails the payment of AUD 640,000 in cash (£349,500) and the issuance of 23,711,018 new ordinary shares in Corcel to Base Asia Pacific Limited, a Sinom subsidiary.  This represents an approximate 65% discount from the face value of the debt.  Following the transaction Sinom will own 12.69% of Corcel plc and will be locked in on the newly issued shares for a period of 12 month.  Sinom will also sign an industry standard relationship agreement.

RMI is the 100% owner of the Wowo Gap nickel/cobalt project located 250km from the Company's existing Mambare project. 

For further information, please contact:

Scott Kaintz 020 7747 9960    CEO   Corcel Plc

Roland Cornish/ Rosalind Hill Abrahams 020 7628 3396   NOMAD Beaumont Cornish Limited

Thomas Smith 020 7392 1432      Broker Monecor (London) Ltd (ETX Capital)

Simon Woods 0207 3900 230       IR Vigo Communications     

This announcement contains inside information under Article 7 of Regulation (EU) 596/2014 .

For Further Information

Wowo Gap Nickel-Cobalt Project (Information as previously announced):

ASX listed RMI has a 100% interest in the Wowo Gap nickel-cobalt project, located 200km from the Papua New Guinea Capital of Port Moresby and some 150km southeast of the Company's Mambare asset. RMI holds the project through one tenement in PNG, EL 1165, currently under reapplication from 28 February 2020 for a further 2-year period.

According to RMI's announcements made on the ASX and reflected on their website, the most recent 2010-11 drilling programme identified a JORC 2004 resource later including an Indicated and Inferred Resource Estimate of 125m tonnes at 1.06% nickel and 0.07% cobalt.  Exploration at the project dates back to the 1950s and has consisted of multiple drilling programmes, including diamond, auger and wacker exploration holes together with ground penetrating radar activities to identify the laterite profile.   

An independent valuation ("Valuation") of the Wowo Gap project was conducted in 2009 and valued the project at AUD 168m.

2011 Mineral Resource Estimate	Mt	Nickel (%)	Cobalt (%)
Indicated	72	1.03	0.07
Inferred	53	1.09	0.06
Total	125	1.06	0.07
​ Contained Metal (kt)		1,325	83

 

END

 

 

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