REG - Empire Metals Ltd - Stavely Project Update

Empire MetalsAnnouncement

26/04/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240426:nRSZ0838Ma&default-theme=true

RNS Number : 0838M  Empire Metals Limited  26 April 2024

Empire Metals Limited / LON: EEE / Sector: Natural Resources

26 April 2024

Empire Metals Limited

("Empire" or "the Company")

 

Stavely Project Update

 

Empire Metals Limited (LON: EEE), the AIM-quoted resource exploration and
development company, announces that, in line with the Company's strategy to
accelerate the development of the Pitfield Titanium Project ('Pitfield') in
Western Australia, management has undertaken an assessment of the Company's
non-core assets and as a consequence decided not to extend the completion date
for the acquisition of the Stavely Project, located in Victoria, which expired
on 6 April 2024, and as a consequence the acquisition has been terminated.

 

Shaun Bunn, Managing Director, said: "Given the focus on the rapid advancement
of Pitfield, the Company considers it prudent to rationalise its exploration
portfolio and has decided not to proceed with the acquisition of the Stavely
Project.  The Board no longer believes that this is a core project for Empire
and by rationalising the Company's portfolio, the Board can apply all of the
Company's energy and resources on Pitfield as it targets a maiden resource in
2024, and the construction of a demonstration plant in the following year.

 

"I look forward to providing an update on our Development Plan for Pitfield,
particularly on the establishment of an Exploration Target over two key
prospect areas, an important outcome from our recent drilling campaign. This,
and the next phase of mineralogical and metallurgical studies, will provide a
much clearer picture of the potential value of the giant, titanium rich
mineralised system."

 

Background - the Stavely Project

 

On 6 April 2022, Empire acquired a 70% interest in three prospective
Australian-based exploration projects (the 'Projects') from Century Minerals
Pty Ltd ('Century') through a Sale and Purchase Agreement ('Agreement'),
subject to certain conditions precedent being satisfied. Two of the Projects,
Pitfield and the Walton Project ('Walton'), are located in Western Australia
whilst the Stavely Project lies within the Stavely Arc region of Victoria.

 

At the time of the initial acquisition the consideration payable for the
acquisition of Pitfield, Walton and the Stavely Project was agreed and
announced on 6 April 2022. The consideration would be satisfied by the issue
of 16,835,588 new ordinary shares in Empire to Century, apportioned equally
between each Project and issued upon the grant of the relevant tenement for
each of the Projects.

 

Under the Agreement, completion of the sale and purchase of each Project was
independent of the others. The sale and purchase of Pitfield, having a granted
tenement at the time, was completed on the 6 April 2022. The sale and purchase
of Walton completed on 29 March 2023, the date the tenement was granted.
 Following the completion of Pitfield, and subsequently Walton, the Company
had issued a total of 11,223,725 shares by way of consideration for these
acquisitions.

 

At the date of the Agreement, there were a number of conditions precedent to
be satisfied before completion of the sale and purchase of the Stavely Project
and these were to be satisfied no later than 6 April 2024. One of these
conditions precedent was the grant of the tenement comprising the Stavely
Project. The expiry date has now passed and the tenement has not yet been
granted.

 

Consequently, the Company has decided not to proceed with the sale and
purchase of the Stavely Project, preferring to concentrate the Company's
resources on the rapidly developing titanium project at Pitfield.  The
remaining 5,611,862 shares will therefore not be issued, and the Stavely
Project will revert to Century.

 

**ENDS**

For further information please visit www.empiremetals.co.uk
(http://www.empiremetals.co.uk)   or contact:

 Empire Metals Ltd

 Shaun Bunn / Greg Kuenzel / Arabella Burwell                                            Tel: 020 4583 1440
 S. P. Angel Corporate Finance LLP (Nomad & Broker)                                      Tel: 020 3470 0470

 Ewan Leggat / Adam Cowl / Kasia Brzozowska
 Shard Capital Partners LLP (Joint Broker)                                               Tel: 020 7186 9950

 Damon Heath
 St Brides Partners Ltd (Financial                                                       Tel: 020 7236 1177
 PR)

 Susie Geliher / Charlotte Page

 

About Empire Metals Limited

Empire Metals is an AIM-listed (LON: EEE) exploration and resource development
company with a project portfolio comprising copper, titanium and gold
interests in Australia and Austria.

 

The Company's strategy is to develop a pipeline of projects at different
stages in the development curve. Its current focus is on the Pitfield Project
in Western Australia, which has demonstrated to contain a newly recognised
giant titanium-rich mineral system that hosts a globally significant titanium
discovery.

 

The Company also has two further exploration projects in Australia; the
Eclipse Project and the Walton Project in Western Australia, in addition to
three precious metals projects located in a historically high-grade gold
producing region of Austria.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDIAMJTMTBTBII