Cyprus Joint Venture Termination

RNS Number : 2792D

Caerus Mineral Resources PLC

18 October 2022

 

18 October 2022

Caerus Mineral Resources PLC

('Caerus' or the 'Company')

Cyprus Joint Venture Termination

Caerus Mineral Resources PLC (LON:CMRS), the exploration and resource development company focused on developing mineral resources to support the global 'Clean Energy' initiative, would like to announce its intention to terminate the Bezant Resources Plc ("Bezant") and Caerus joint venture covering Troulli, Kokkinopetra and Anglesides ("Troulli JV").

As stated in its interim results dated 30 September 2022, the Company made a credit loss of £303k in the first half of 2022 due to Bezant not having contributed its proportion of Troulli JV funding. By now Caerus should have received at least US$500k from Bezant.

After conversations with Bezant this morning, it was mutually agreed to terminate the Troulli JV.

Chris Lambert, Chairman of Caerus Mineral Resources, said:

"It is with regret that we have mutually agreed to terminate the JV agreement. Whilst this may seem to be a set-back, I see the JV termination as a positive development for Caerus shareholders as it enables us to reclaim 100% of Troulli and the other projects in the joint venture. The JV agreement was poorly negotiated by the previous board and was certainly detrimental to the Company's interests. To give away 80% of the Troulli project, whilst having to contribute 50% of the initial US$1m work programme funding, was not a fair commercial transaction.

The JV agreement also allowed Bezant to put any new Cyprus project acquired or pegged by Caerus into the JV, thereby gaining a potential 80% interest. This clause left the Company with no incentive to expand its footprint in Cyprus. In addition, the terms of the processing contract between Caerus and Jubilee Metals Group were once again heavily biased towards Jubilee, and detrimental to any potential early cash flow to Caerus.

As indicated in the interim results, the board will continue to implement more robust corporate governance structures to ensure historic governance breaches cannot be repeated, and the Company operates to best practice standards with all its stakeholders. 

Caerus is focused on developing the significant opportunities that can be generated through its relationship with EVM group. It will update the market later in 2022 with an overview of this strategy."

For further information, please contact:

Caerus Mineral Resources plc Charles Long, Chief Executive Officer	[e-mail]
Novum Securities Jon Belliss	[phone]

 

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