REG - Corcel PLC - Sale of Wowo Gap Nickel Project

CorcelAnnouncement

12/06/2023 09:15

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RNS Number : 3917C  Corcel PLC  12 June 2023

Corcel PLC

("Corcel" or the "Company")

Sale of Wowo Gap Nickel Project

12 June 2023

Corcel Plc (London AIM: CRCL), the pan Angolan / Brazilian Oil and Gas
company, with interests across battery metals mining and oil and gas announces
that it is formally disputing the previously announced pre-emption of Mambare
and that it has further sold its 100% interest in the Wowo Gap nickel project
in Papua New Guinea, to Integrated Battery Metals Pte Ltd. ("IBM") for up to
US$2.8M.  This agreement supersedes that covering the battery metals joint
venture previously announced on 1 March 2023, as the joint venture parties
have agreed to re-organise the transaction into two separate sale transactions
given the recent Angolan oil acquisition.

Highlights:

o  IBM to purchase Corcel's 100% interest in Niugini Nickel Pty Ltd, direct
holder of EL 1165 in Papua New Guinea and the sole license owner of the Wowo
Gap nickel-cobalt project for up to US$2.8M, of which:

o  US$500,000 to be paid at completion net of costs already incurred by IBM
under the carried interest previously announced

o  a further US$900,000 to be paid 24 months from completion

o  a final US$1.4m payment payable as a profit share from the first $2.8M of
production at the project

o  Continues the disposal of the Company's historic mining assets as it
continues its pivot to oil and gas

Corcel Chief Executive Officer, Scott Kaintz commented: "Building on our
recent agreements with IBM, who have been effectively operating Wowo Gap since
January, this agreement splits the sale of Wowo Gap from that of Mambare and
allows a key part of the original transaction to proceed independently from
the disputed pre-emption on Mambare."

Transaction Summary

The Company has agreed to sell a 100% interest in Niugini Nickel Pty Ltd,
holder of EL 1165 and the Wowo Gap nickel-cobalt project.  Consideration for
the transaction will consist of four main parts:

o  US$500,000 payable upon completion to be netted off against historic
operating costs paid by IBM on behalf of Corcel during the course of 2023

o  US$900,000 payable to Corcel 24 months following completion

o  US$1.4m payment structured as a profit share to be paid out of the first
cumulative net profits of US$2.8M of the project's production

o  A 5% commission payable to Corcel for any investment or farm-in partners
introduced to Niugini Nickel by Corcel for a period six months after
completion

The Company's interest in Niugini Nickel was most recently held in the interim
balance sheet at £1.3m and the attributable losses for the year ended 30 June
2022 were approximately £170,000.

For further information, please contact:

Scott Kaintz
 
Corcel Plc CEO

Development@corcelplc.com (mailto:Development@corcelplc.com)
 
 

James Joyce / James Bavister /Andrew de Andrade
WH Ireland Ltd NOMAD & Broker

0207 220 1666
 
 

Patrick d'Ancona
 
Vigo Communications IR

0207 3900 230
 

 

 

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