REG - Cloudbreak Discovery - Update on Assets and Projects

Cloudbreak DiscoveryAnnouncement

22/01/2024 07:00

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RNS Number : 3727A  Cloudbreak Discovery PLC  22 January 2024

22 January 2024

 

Cloudbreak Discovery Plc

('Cloudbreak', or 'the Company')

 

Update on Assets and Projects

Cloudbreak Discovery Plc, (LSE: CDL), the natural resource project generator,
is pleased to provide an update on its portfolio of assets and projects and to
redefine its strategic focus.

·      Strategic focus on near term revenue, project pivots, transition
finance and project generation

·      Refocused portfolio following an inflection year for the Company
and the completion of the settlement agreements with former directors and
management ("Settlement Agreements") in late 2023

·    Streamlined board offering strong management to support growth of the
Company to generate value for a supportive shareholder base.

Following completion of the Settlement Agreements in late 2023 which included
the disposal of certain assets, the Company's current asset and project status
is set out in the table below.

 ASSET                         COMMODITY                              DESCRIPTION                                                                     ASSET CLASS                           CDL STAKE
 Tradeable Securities(1)       Multiple Companies                     Share position held in multiple companies                                       Various                               100%

                                                                                                                                                                                            Value at 08/01/2024: CAD $933,945
 Debenture 1                   Oil and Gas                            Debenture holding with a second lien security position on a producing oil and   Debenture                             100%
                                                                      gas field in Texas. 12% per annum interest and 3.25% Gross Overriding Royalty

                                                                      on production.

                                                                                                                                                      Maturity: 01/05/2024                  USD $2.0m
 Debenture 2                   Oil and Gas                            Debenture holding on a company that is pending production in Texas. The         Debenture                             100%
                                                                      Debenture may be converted into a 2% Gross Overriding Royalty on production.

                                                                                                                                                      Maturity: 01/07/2024                  USD $600k
 Bobcat - Idaho, USA           Copper, Moly, Gold porphyry potential  1,034 acres. Positive past exploration history with good drill results.         Royalty: to be established            50%
                                                                      Seeking exploration partner.
  Atlin West, Rizz, Icefall,   Gold, Silver Copper, Lead, Zinc        Projects originally staked by Cloudbreak and then optioned. Optionee            Royalty: Atlin West - 2% NSR          100%
                                                                      exploration work incomplete.

                                                                               Rizz and Icefall: to be established
                                                                      Optionee: Power Group Projects Corp. (PGP-TSXV)
 Rupert                        Copper                                 Project originally staked by Cloudbreak and then optioned. Optionee             Royalty: 1% NSR                       100%
                                                                      exploration work incomplete.

                                                                      Optionee: Buscando Resources Corp. (BRCO-CSE)
 Klondike and Stateline        Copper                                 Returned to Cloudbreak due to change of corporate direction. Cloudbreak will    Royalty: to be established            50%
                                                                      seek alternate exploration partner.
 Northeast USA Lithium         Lithium Brines                         Cloudbreak and its consultants developed a dataset that established areas of    Royalty: to be established            100%
                                                                      highly prospective lithium brine concentrations over a 2-year timeframe.
                                                                      Acquired one lease of 435 acres to test and confirm. Seeking exploration
                                                                      and/or production partner.
 Southern States USA Lithium   Lithium Brines                         Cloudbreak and its consultants developed a dataset that established areas of    Royalty: to be established            100%
                                                                      potential lithium brine concentrations over a 2-year timeframe. Seeking
                                                                      exploration and/or production partner.
 South Timmins                 Gold                                   Project originally staked by Cloudbreak and then optioned. Optionee             Royalty: 1% NSR                       50%
                                                                      exploration work incomplete.

                                                                      Optionee: North American Performance Resources Ltd. (private)
 Yak                           Gold                                   Project originally staked by Cloudbreak and then optioned. Phase 1 exploration  Royalty:2% NSR                        100%
                                                                      work program completed by Optionee.

                                                                      Optionee: Moonbound Mining Ltd. (MML:CSE)
 Caribou                       Copper, Silver                         Optionee: Norseman Silver Inc. (NOC-TSXV)                                       Royalty:2% NSR                        0%

 

Notes:

1.        Tradeable securities do not include shares that Cloudbreak
holds in unlisted companies

2.        NSR = Net Smelter Royalty

 

Cloudbreak disposed of certain non-core assets as part of the Settlement
Agreements and has chosen to relinquish certain projects with no financial
merit or financial impact, which have been provided for in the Company's
accounts and details will be disclosed in full in the forthcoming interim
report.

 

Following the Board and Management changes in 2023, Cloudbreak is in the
process of refining its investment and acquisition strategy in the energy
related minerals sector, with focus on:

·      Near term revenue or project pivots

·      Transition finance

·      Project generation

Cloudbreak will acquire or invest in either quoted or private companies,
partnerships, joint ventures or direct interests in projects where it can
support a strong management team as well as projects that are relevant to its
investment thesis.

 

The Board will target investments that offer substantial shareholdings in
investee companies to maximise the potential of returns to shareholders.
However, investment opportunities will be considered on a case-by-case basis
and minority interest investments will not be ruled out.  Cloudbreak's Board
and their supporting team have considerable experience across the mining and
oil and gas sectors in a wide range of countries.

Andrew Male, Director, Interim CEO, states: "The combination of Cloudbreak
tradeable securities, debentures and the projects enable the Company to
position itself well going forward. We intend to create and build new revenue
streams enabling the Company to successfully build a stronger underlying value
proposition."

This announcement contains information which, prior to its disclosure, was
inside information as stipulated under Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310 (as amended).

 

Qualified Person

 

Mr. Rory Kutluoglu P. Geo., a consultant of the Company is the Qualified
Person ("QP") under NI 43-101 for the technical information in this news
release, and has verified the data disclosed and approves the technical
contents contained in this news release.

- Ends -

 

For additional information please contact:

 

 Cloudbreak Discovery PLC  Tel: +44 792 6 397675
                           Andrew Male, Interim CEO         am@cloudbreakdiscovery.com

 Novum Securities          Tel: +44 7399 9400
 (Financial Adviser)       David Coffman / George Duxberry

 Oberon Capital            Tel: +44 20 3179 5355 /

                           +44 20 3179 5315
 (Broker)                  Nick Lovering / Adam Pollock

 

 

About Cloudbreak Discovery PLC

Cloudbreak Discovery PLC is a leading natural resource project generator and
royalty business. Cloudbreak is focused on energy royalty acquisitions with
the aim of bringing near-term cashflow and driving shareholder value. Its
primary operating jurisdiction is the United States, but the Company also
deploys its project generation model in the international energy sector to
acquire minority interests in projects of merit.

 

Through its wholly owned but independently operated subsidiary, Cloudbreak
Exploration Inc., the Company will develop its array of mineral assets, whilst
continuing to generate new projects with a particular focus on commodities key
to the energy transition.

 

Cloudbreak's generative model across the energy and mineral sector enables a
multi-asset approach to investing and exploration. Diversification within the
natural resource sector and amongst resource classes is key to withstanding
the cycles of investing.

 

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