REG - Caerus Mineral Res. - Cyprus Joint Venture Termination

Critical Mineral ResourcesAnnouncement

18/10/2022 11:45

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RNS Number : 2792D  Caerus Mineral Resources PLC  18 October 2022

18 October 2022

Caerus Mineral Resources PLC

('Caerus' or the 'Company')

Cyprus Joint Venture Termination

 

Caerus Mineral Resources PLC (LON:CMRS), the exploration and resource
development company focused on developing mineral resources to support the
global 'Clean Energy' initiative, would like to announce its intention to
terminate the Bezant Resources Plc ("Bezant") and Caerus joint venture
covering Troulli, Kokkinopetra and Anglesides ("Troulli JV").

As stated in its interim results dated 30 September 2022, the Company made a
credit loss of £303k in the first half of 2022 due to Bezant not having
contributed its proportion of Troulli JV funding. By now Caerus should have
received at least US$500k from Bezant.

After conversations with Bezant this morning, it was mutually agreed to
terminate the Troulli JV.

Chris Lambert, Chairman of Caerus Mineral Resources, said:

"It is with regret that we have mutually agreed to terminate the JV
agreement. Whilst this may seem to be a set-back, I see the JV termination as
a positive development for Caerus shareholders as it enables us to reclaim
100% of Troulli and the other projects in the joint venture. The JV agreement
was poorly negotiated by the previous board and was certainly detrimental to
the Company's interests. To give away 80% of the Troulli project, whilst
having to contribute 50% of the initial US$1m work programme funding, was not
a fair commercial transaction.

The JV agreement also allowed Bezant to put any new Cyprus project acquired or
pegged by Caerus into the JV, thereby gaining a potential 80% interest. This
clause left the Company with no incentive to expand its footprint in Cyprus.
In addition, the terms of the processing contract between Caerus and Jubilee
Metals Group were once again heavily biased towards Jubilee, and detrimental
to any potential early cash flow to Caerus.

As indicated in the interim results, the board will continue to implement more
robust corporate governance structures to ensure historic governance breaches
cannot be repeated, and the Company operates to best practice standards with
all its stakeholders.

Caerus is focused on developing the significant opportunities that can be
generated through its relationship with EVM group. It will update the
market later in 2022 with an overview of this strategy."

For further information, please contact:

 Caerus Mineral Resources plc            info@caerusmineralresources.com (mailto:info@caerusmineralresources.com)

 Charles Long, Chief Executive Officer
 Novum Securities                        +44 (0) 20 7399 9425

 Jon Belliss

 

 

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