REG - Corcel PLC - Sale of Burwell Energy and Corporate Debt Update

CorcelAnnouncement

25/01/2023 07:00

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RNS Number : 7493N  Corcel PLC  25 January 2023

Corcel PLC

("Corcel" or the "Company")

 

Sale of Burwell Energy Storage Project and Corporate Debt Update

 

 

25 January 2023

Corcel Plc (London AIM: CRCL), the natural resource exploration and
development company, with interests in battery metals, announces that it has
completed the sale of a 100% interest in the Burwell Energy Storage project
outside of Cambridge to Burwell AL Ltd.  It also provides an update on its
outstanding debt balance following a period of substantial de-leveraging.

Sale of Burwell Project

The Company has closed the sale of the Burwell project for cash proceeds of
£200,000, plus a reimbursement of Corcel's grid deposit of £50,000.  This
sale formally completes the closure of the Flexible Grid Solutions division.

As at 30 June 2022, the Burwell project was held in the Company's accounts
balance sheet at nil and losses in the subsidiary containing the project for
the most recent financial year were £35.2k.

Scott Kaintz, CEO of Corcel commented:

"The sale of the Burwell energy storage project amidst ongoing timing
uncertainties and potentially substantial additional upgrade costs at the
local substation, completes the closure of the Flexible Grid Solutions
business, which has been unwound at a small profit.

Meanwhile, the Company's substantial deleveraging activities continue apace
with the goal to reduce borrowings to an appropriate level and to provide an
adequate operational runway to the business."

Corporate Debt Update

Following completion of the sale of the Burwell project, Corcel intends to
utilize a portion of the proceeds to retire the remaining balance of the
portion of its corporate debt, most recently restructured and announced on 31
October 2022.  Recent asset sales since November 2022, including the Burwell
transaction, will then have reduced total outstanding debt by a total of
£777,600 and have completely repaid the debt originally due October 2022.

Following these payments, the outstanding balance of the Company's corporate
debt is £672,941 (consisting of £619,198 of principal and £53,743 of
accrued interest) which was last refinanced on 14 December 2021 with the
initial payment of £156,943 due 23 January 2023 and smaller monthly payments
due through to June 2023.

The remaining proceeds of the sale of the Burwell project will be used for
working capital.

The Company is in constructive discussions with its remaining lenders to
refinance these obligations regarding a reprofile and extension of the
outstanding amount.

The Company will continue to update the markets on the status of these debt
negotiations in due course.

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

 

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Act 2018. Upon the publication of this announcement, this inside information
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