REG - Corcel PLC - Mt. Weld Farm Out and Joint Venture

CorcelAnnouncement

04/01/2023 07:00

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RNS Number : 5773L  Corcel PLC  04 January 2023

Corcel PLC

("Corcel" or the "Company")

 

Mt. Weld Farm Out and Joint Venture

 

04 January 2023

 

Corcel, the natural resource exploration and development company with
interests in battery metals, including nickel, cobalt and rare earth elements,
announces that it has entered into a farm-out and joint venture agreement with
Riversgold Ltd (ASX:RGL) covering its recently acquired rare earth elements
project at Mt. Weld, in Laverton, Australia.

 

Highlights

o  AUD 30,000 in cash immediately payable to Corcel

o  RGL earns a 50% interest in the project through paying 100% of the work
programme, spending AUD 500,000 over a 12-month period

o  CRCL has the right, but not the obligation, to allow the farm-in of a
further 20% for an additional AUD 1,000,000 carry on the work programme
bringing total carried expenditure to AUD 1,500,000

o  RGL will operate the tenements and direct the exploration programme on
behalf of Corcel

 

Chief Executive Officer, Scott Kaintz commented: "We are delighted to follow
directly our acquisition of Mt. Weld with a farm out of half of the position
to fund 100% of the near-term development and exploration costs.  This is
highly accretive against our acquisition cost and further reinforces the
Board's view of the project's immediate potential upside and overall
attractiveness.

 

Our partner, Riversgold Ltd, brings with them an experienced exploration team
well positioned to lead the work on the ground in Australia.  We look forward
to working with them in 2023 to take the project forward."

 

Transaction Overview

 

Corcel has entered into a farm-out and joint venture agreement with Riversgold
Ltd (together the "Parties"), a natural resource exploration business listed
on the ASX.  The Parties have agreed that RGL will make an immediate payment
to Corcel of AUD 30,000 and will also commit to funding 100% of an initial
exploration programme ("First Earning Period") of AUD 500,000; expected to be
completed in 2023.

 

Following total project expenditure of AUD 500,000 during the First Earning
Period, RGL will earn a 50% interest in the project.  If RGL fails to spend
AUD 500,000 during the First Earning Period, then it will be deemed to have
withdrawn from the farm-in agreement and will retain no interest in the
project.   As part of the farm in, there is a minimum initial carried spend
of AUD 100,000.

 

After the First Earning Period, Corcel may either fund the project according
to its shareholding, or elect to allow RGL (at its discretion) to farm-in to
an additional 20% of the project in exchange for further funding of AUD
1,000,000 of exploration expenditures (the "Second Earning Period"), bringing
the total funding of the project over both periods to AUD 1,500,000.  If RGL
during the Second Earning Period fails to fund AUD 1,000,000 then it will be
deemed to have withdrawn from the Second Earning Period, and will retain its
initial 50% interest in the project.

 

The Parties will operate the project as an industry standard joint venture
with RGL managing the tenements and operating as exploration manager.
Additional announcements on the initial stages of exploration activities at
the site will be announced in due course.

 

About the Mt. Weld REE Project

The "Mt Weld (P38/4489) Project," consists of granted mineral tenement,
located 1.4 km (0.9 miles) west-north-west of Lynas Rare Earths Limited's Mt.
Weld REE Mine near Laverton in Western Australia.  The Project covers 171
hectares in size and the tenement straddles the mine access road to Lynas's
Mt. Weld Mine.  The tenement is predominantly covered by recent transported
sediments obscuring the underlying geology. Four discrete undrilled magnetic
features, potentially representing carbonatite intrusive complexes have been
interpreted from open file high resolution magnetic surveys and warrant
further investigation.

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

Patrick d'Ancona  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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