REG - Metals Exploration - Agreement to Purchase Gold Processing Plant

Metals ExplorationAnnouncement

05/03/2025 07:00

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RNS Number : 3588Z  Metals Exploration PLC  05 March 2025

5 March 2025

METALS EXPLORATION PLC

Agreement to Purchase Gold Processing Plant

Metals Exploration plc (AIM: MTL) ("Metals Exploration", the "Company" or,
together with its subsidiaries, the "Group"), a gold production, exploration,
and development company with assets in the Philippines and Nicaragua, is
pleased to announce that it has entered into an agreement with Almaden
Minerals Ltd. (the "Agreement") to purchase a fit for purpose gold ore
processing and concentrating plant (including crushers, conveyors, grinding
ball mill, Sepro Falcon gravity circuit, carbon in leach (CIL) circuit,
elution and smelting equipment and laboratory), and certain related assets
(the "Plant"), for a purchase price of US$9,700,000 expected to be satisfied
from existing cash resources and cashflow generation. The Plant is currently
located in Nome, Alaska, and, following completion, will be transported to the
Group's La India project area in Nicaragua.

Completion of the transaction is subject to certain conditions, including
completion of a final inspection by the Company, and is expected to occur on
or around 31 August 2025. The consideration for the Plant is payable in
instalments as follows:

·     US$2,000,000 is due within 14 days of the execution of the
Agreement.

·     US$3,000,000 shall be paid upon verification of transport scheduling
(expected to take place on or around 31 March 2025).

·    US$2,000,000 shall be paid following the final inspection of the
Plant (expected to take place on or around 30 April 2025).

·     US$2,700,000 shall be paid when the Plant is prepared for shipment
(expected to take place on or around 31 August 2025), subject to any
adjustments or replacements required based on the Company's final inspection.

Weather dependent, dismantling, packing and freight forwarding of the Plant
will commence in early May 2025, with the target to have the Plant in transit
before the end of August 2025. The Company has chartered a private vessel for
the move, enabling and ensuring a sea freight delivery timetable to match our
construction schedule.

The Plant will be reassembled at the La India project in Nicaragua saving
significant time on the construction of La India.

Darren Bowden, CEO of Metals Exploration, commented:

"The Plant provides the Company with the ability to fast track the La India
project, saving considerable development time in not having to order long-lead
items. This purchase has re-affirmed our ability to achieve our aim to have
commenced production at La India in Q4 2026 as all external long lead items
are in hand, including associated detailed drawings which reduces engineering
costs and time.

"This purchase further demonstrates our commitment to having the La India
project in operation on a fast-track schedule, ensuring Metals Exploration
maintains and improves its current positive cash flows in the short term."

For further information, please contact or visit:

 Metals Exploration PLC
 Via BlytheRay                            +44 (0) 207 138 3204

 Nominated & Financial Adviser:           STRAND HANSON LIMITED
 James Spinney, James Dance, Rob Patrick  +44 (0) 207 409 3494
 Broker:                                  HANNAM & PARTNERS
 Matt Hasson, Franck Nganou               +44 (0) 207 907 8500

 Public Relations:                        BLYTHERAY
 Megan Ray, Said Izagaren                 +44 (0) 207 138 3204

 

Web:                www.metalsexploration.com
(http://www.metalsexploration.com)

X:                     @MTLexploration
(https://twitter.com/MTLexploration)

LinkedIn:           Metals Exploration
(https://www.linkedin.com/company/metals-exploration-plc)

 

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