REG - Corcel PLC - Operations Update

CorcelAnnouncement

22/06/2022 07:00

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RNS Number : 7626P  Corcel PLC  22 June 2022

 

Corcel PLC

("Corcel" or the "Company")

 

Operations Update

 

22 June 2022

 

Corcel, the natural resource exploration and development company with
interests in battery metals and flexible energy generation and storage
announces an update across its various interests and operations.

Wowo Gap Nickel/Cobalt Project (100% Interest)

 

As initially announced on 10 January 2022, the Company has entered into a
non-binding memorandum of understanding ("MOU") with Shandong New Powder Cosmo
AM&T ("NPC") for the supply of nickel from the Company's Mambare and Wowo
Gap nickel projects in Papua New Guinea, where the Company owns 41% and 100%
respectively.

 

As of mid-June 2022 and following the opening up of regional travel post COVID
constraints, a representative of Sentient Equity Partners ("SEP"), one of the
three main investors and the mining specialists amongst NPC shareholders, has
returned from a visit to Cosmo AM&T in Korea; a publicly listed Korean
company with a US$1.3bn market capitalization and the fourth largest lithium
battery cathode producer in the country.  This meeting of NPC shareholders
successfully advanced  discussions covering the MOU signed earlier this year
as well as addressing the broader requirement for NPC to secure long-term
supplies of critical battery metals.  While NPC's current revenues are
robust, access to reliable and reasonably priced raw materials remains an
ongoing challenge for the plant and the sector generally.

 

NPC is currently preparing a detailed report on the Mambare and Wowo gap
projects for review by its shareholders, and COSMO AM&T has invited
Corcel's management to Korea to advance discussions and move the MOU to a
binding agreement.  Further announcements will follow as appropriate.

 

Mambare Nickel/Cobalt Project (41% Interest)

 

The Mambare JV partners recently concluded a 3-day visit with the Papua New
Guinea Mineral Resource Authority in Popondetta.  This visit was primarily
conducted for stakeholder awareness purposes as well as to provide broad-based
background and education on the project to local government officials and
landowners.

 

At Gona and Port Harvey (located next to Oro Bay), the JV has recently
concluded water depth soundings designed to confirm the appropriateness of
each location for direct shipping ore ("DSO") export to bulk carrier vessels
for onward transfer to Asia.  A variety of transfer options are currently
being considered and initial reports indicate that Port Harvey would likely be
a very adequate back-up site to the primary Oro Bay export option currently
under consideration.

 

Meanwhile the JV's representatives will remain in PNG for the next ten days to
advance the current workplans as PNG begins to enter a period of national
elections.

 

Flexible Grid Solutions

 

The Company is reviewing a number of sizeable battery storage opportunities in
the UK, and following continued discussions with the landlord of the 50MW
Avonmouth gas peaker site, Altana Social Impact Partnership ("ASIP") and the
Company, all parties have mutually agreed to end the Company's marketing
rights and the funding efforts associated with the Avonmouth project.

 

The Company and Altana, given the strong bias of Altana and investors more
generally towards non fossil fuel projects, will now focus on energy storage
opportunities across the UK, which both parties believe to be significantly
more fundable in the present environment.  Further announcements will be made
in due course.

 

Chief Executive Officer, Scott Kaintz commented: "It is highly encouraging to
see our progress maturing offtake arrangements for Wowo Gap and Mambare and we
much look forward to meeting Cosmos over the summer to take forward these
discussions on offtake and working together more broadly.

 

Whilst it is of course disappointing to end our negotiations on Avonmouth
after many months of effort, we recognize the practical dominance of ESG
sentiments with infrastructure and energy investors and see significant value
from our peaker project efforts having identified our funding partnership with
Altana.  We expect to have further news on our battery storage portfolio
shortly."

 

 

 

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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