TIDMCRCL
RNS Number : 0224D
Corcel PLC
17 October 2022
Corcel PLC
("Corcel" or the "Company")
Proposed Battery Metals Joint Venture, New Cornerstone Investor,
Placing, and TVR
17 October 2022
Corcel, the natural resource exploration and development company
with interests in battery metals and flexible energy generation and
storage announces it has entered into a memorandum of understanding
("MOU") for the reorganization of the Company's battery metal
mining interests in PNG into a new carried battery metal led Asian
joint venture ("JV") structure alongside the introduction of a new
cornerstone investor through an equity placing.
MOU Highlights:
o Intended creation of a Singapore based upstream Battery Metal
joint venture which will, subject to contract, own CRCL's position
in the Mambare and Wowo Gap projects alongside the Doncella lithium
project in Argentina
o Corcel intends to own 50% of the proposed JV, benefit from a
$1.5m carried interest and a 1.5% gross revenue royalty on Wowo Gap
and nominate half of the Board of the JV - It is the intention of
the parties to list the JV in Singapore in the medium term
o Introduction of a new cornerstone investor with Corcel plc
Board representation as part of a fundraising of GBP200,000 at a
price of GBP0.004 (no discount to the closing price) with 1 for 1
warrants exercisable at GBP0.005 per share
James Parsons, Executive Chairman, commented : " I am delighted
to welcome Mr Yan Zhao to the Board and to the shareholder
register. We believe this proposed PNG restructuring, with its
associated carry, and an ultimate Singapore listing, is the best
way to bulk up and ultimately unlock the significant value in our
battery metals portfolio."
Battery Metals Interest Restructuring and Joint Venture
Further to the previously announced offtake discussions with
Shandong New Powder COSMO AM&T ("NPC"), Corcel and NPC have
signed an MOU to form a new joint venture company, Integrated
Battery Metals ("IBM") in Singapore, in order to pursue an Asian
focused battery metals strategy with direct links to offtake
partners and end users of these critical battery metals. It is both
parties view that Singapore is the ideal listing forum for this
expanded battery metals portfolio.
o Corcel has agreed, 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, and NPC has agreed to
inject its 4.48% interest in Hanacolla S.A., owner of the Doncella
lithium project in Argentina, with additional lithium and other
battery metal interests expected to follow. The 4.48% interest in
Hanocolla has been recently externally valued at $4.1M by reference
to a funding for 10% of Hanocalla valuing the business at $92m. In
addition to its 50% stake in IBM, Corcel will receive a carry of up
to two years or the award of a mining lease at Wowo Gap capped at
$1.5m. Corcel will also receive a 1.5% gross revenue royalty over
the Wowo Gap project.
NPC and CRCL intend to operate IBM via a standard joint venture
structure with CRCL receiving 50% board representation, and NPC and
CRCL have agreed to seek to list IBM in Singapore. It is expected
that use of the IBM structure will allow access to the industrial
led capital required to take all of IBM's battery metal interests
forward through feasibility and ultimately into production and
offtake.
Signature of the transaction is expected to occur in the coming
weeks with completion of this transaction being conditional on
CRCL's Mambare partner's pre-emption rights being waved, as well as
the relevant administrative approvals required by the PNG
government to complete the required asset transfers.
Doncella Lithium Project
The Doncella lithium project is Hanacolla's flagship project
located in the Arizaro Salar, in the Salta province of NW
Argentina; approximately 170km from Salta. The project consists of
725km(2) of lithium salt brine style mineral tenements located
within the Salar de Arizaro Basin. Arizaro is the largest salar in
Argentina and one of the most important in Puna Region. The Puna
constitutes the southern end of the high platform of the Central
Andes, better known on a continental scale as the Altiplano, which
develops closely related to the Cenozoic volcanic arc.
Salta is considered a prospective area within the "Lithium
Triangle" according to the Fraser Institute. The "Lithium Triangle"
is the stylized name from a geographic region circumscribed to the
S. American meso-Andean plateau, on which three countries
simultaneously have territory: Argentina, Bolivia and Chile, and
owes its name to the lithium available in lithium brine-based
deposits.
The Doncella project is a lithium in brine deposit. This type of
project is characterized by being located in structural lows that
form restricted basins that are mainly filled with halite, clay,
silt, sand and gravel. Lithium rich brine is lodged in the pores of
the deposited sediments. As the lithium remains dissolved in fluid
form, it has the ability to move and mix with other adjacent fluids
once extraction has begun. Exploration is focussed on developing
lithium resources by gaining better understanding of the aquifers
and the variations of the porosity and grades within them. As
conducted by the previous owners to date, a total of 112 trench
samples and 35 drill samples have been collected and have yielded
lithium values between 100 and 247ppm, the average being between
150 and 160ppm.
Additionally, the General Belgrano railway between Salta and
Antofagasta port passes over the Arizaro Salar very close to
Hanacolla's tenements, offering favourable logistics supporting
future exploitation and development. Hanacolla recently raised
$9.2m in new equity valuing the entirety of the business at $92m
and funding the ongoing exploration and development programme.
Equity Raise:
The fundraising has raised gross proceeds of GBP200,000 from the
issue of 50,000,000 new ordinary shares of GBP0.0001 (Ordinary
Shares) at GBP0.004 (the "Placing Price") per share ("Placing
Shares") to Shangdong New Power COSMO AM&T ("NPC").
The Company has also issued the equity investor with one warrant
for every one share exerciseable at GBP0.005 per new warrant share
at any time over the next year ("Warrants").
Upon completion of the fundraising, NPC will have the right to
nominate a Non-Executive Director, Mr. Yan Zhao, to the Board of
the Company, subject to director background checks.
The Company intends to use the funds from this placing for
working capital purposes and to fund the costs associated with
potential acquisitions including origination, due diligence and
advisors fees .
Total Voting Rights:
Application will be made for the 50,000,000 Initial Investment
to be admitted to trading on AIM and it is expected that their
admission to AIM will take place on or around 21 October 2022 ("
Admission").
Following Admission, the Company's total issued share capital
will consist of 580,208,295 Ordinary Shares, with one voting right
per share. The Company does not hold any shares in treasury.
Therefore, the total number of Ordinary Shares and voting rights in
the Company will be 580,208,295 from Admission. This figure may be
used by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change in their interest in, the
share capital of the Company pursuant to the FCA's Disclosure
Guidance and Transparency Rules.
For further information, please contact:
Scott Kaintz 020 7747 9960 Corcel Plc CEO
James Joyce / Andrew de Andrade 0207 220 1666 WH Ireland Ltd
NOMAD & Broker
Simon Woods 0207 3900 230 Vigo Communications IR
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
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END
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