MetalNRG Plc Positive Progress US Cobalt Update
21 July 2017 - 7:00AM
UK Regulatory
TIDMMNRG
MetalNRG plc
("MetalNRG" or the "Company")
21 July 2017
Positive Progress US Cobalt
MetalNRG plc (NEX:MNRG) the natural resource investing company quoted on the
NEX Exchange Growth Market in London is pleased to advise that the Company's
investee, US Cobalt Pty Limited ("US Cobalt"), has commenced the next stage
ground exploration programme at their wholly owned cobalt project in Nevada,
USA.
Concurrently, MetalNRG's Chief Executive Officer has been on the ground, with
technical advisers, to review the project from an operational and technical
perspective. Further information will be provided shortly with regard to the
exploration programme being conducted and also with regard to the early stages
of our project due diligence.
Investors should read the Company's announcement dated 12 July 2017 which
outlined the terms of the Company's investment in US Cobalt. These terms
provide MetalNRG with an immediate 18.18% holding in US Cobalt with an option
agreement to acquire the remainder 81.82% through an entirely MetalNRG shares
based transaction.
Paul Johnson, CEO of MetalNRG commented: "This is an exciting time for the
Company, with our investee US Cobalt active on the ground with the next stage
of their cobalt focused work programme. We have been able to meet the key
members of the team, review the key project targets, consider strategic
planning and further enhance our knowledge of this tremendous opportunity.
Should a cobalt supply deficit develop the impact on the pricing of the cobalt
commodity will be pronounced. MetalNRG is well positioned for this with
existing interests. We are continuing to build our cobalt portfolio and
anticipate the addition of more opportunities in Australia, and potentially the
expansion of our US interests, in due course.
We are working exceptionally hard to secure cobalt interests on fair terms, as
quickly as possible. The interest shown in our work by shareholders, investors
and a number of third parties suggests we are on the right track. Without
question, there is a gap in the UK market for a wholly cobalt focused listed
vehicle and with that in mind the Company is considering dedicating its
activities, at least for the short term, to building a cobalt focused
operation.
There will be more news to follow shortly. Thanks go out to our shareholders,
and new investors, for their continuing support and proactive engagement in the
MetalNRG developing story."
Further information in respect of this exploration programme, including
The Directors of the Company accept responsibility for the contents of this
announcement.
Contact details:
MetalNRG plc +44 (0) 7766 465617
Paul Johnson (Chief Executive Officer)
NEX Exchange Corporate Adviser +44 (0) 20 7469 0930
PETERHOUSE CORPORATE FINANCE LIMITED
Guy Miller
Mark Anwyl
Corporate Broker +44 (0) 1483 413500
SI CAPITAL
Nick Emerson
Andy Thacker
Notes for Editors:
MetalNRG is quoted on the NEX Exchange Growth Market in London with the stock
code MNRG and is a natural resource investing company.
NEX Exchange:
Investors wishing to consider trading in NEX Exchange Growth Market quoted
shares can access this market from numerous brokers, a full list of which can
be accessed through the following link:
http://www.nexexchange.com/for-investors/find-a-broker/
The list accessed through the link above includes certain brokers offering
online trading of NEX Exchange quoted shares.
The Investing Policy of the Company is as follows:
The Company's proposed new Investing Policy is to invest in and/or acquire
companies and/or projects within the natural resources and/or energy sector
with potential for growth and value creation, over the medium to long term. The
Company will also consider opportunities in other related sectors if the Board
considers there is an opportunity to generate an attractive return for
Shareholders. This will include natural resource technologies and fintech
opportunities offering leverage to resource identification, processing,
recording, storage and trading businesses.
Where appropriate, the Board may seek to invest in businesses where it may
influence the business at a board level, add their expertise to the management
of the business, and utilise their significant industry relationships.
The Company's interests in a proposed investment and/or acquisition may range
from a minority position to full ownership and may comprise one investment or
multiple investments. The proposed investments may be in either quoted or
unquoted companies; be made by direct acquisitions or farm-ins; and may be in
companies, partnerships, earn-in joint ventures, debt or other loan structures,
joint ventures or direct or indirect interests in assets or projects.
The Board may focus on investments where intrinsic value can be achieved from
the restructuring of investments or merger of complementary businesses. The
Board expects that investments will typically be held for the medium to long
term, although short term disposal of assets cannot be ruled out if there is an
opportunity to generate an attractive return for Shareholders. The Board will
place no minimum or maximum limit on the length of time that any investment may
be held. The Company may be both an active and a passive investor depending on
the nature of the individual opportunity.
Where the Company builds a portfolio of related assets it is possible that
there may be cross-holdings between such assets. The Company does not currently
intend to fund any investments with debt or other borrowings, but may do so if
appropriate. Investments in early stage assets are expected to be mainly in the
form of equity, with debt potentially being raised later to fund the
development of such assets. Investments in later stage assets are more likely
to include an element of debt to equity gearing. The Board may also offer new
Ordinary Shares by way of consideration as well as cash, thereby helping to
preserve the Company's cash for working capital and as a reserve against
unforeseen contingencies including, for example, delays in collecting accounts
receivable, unexpected changes in the economic environment and operational
problems.
The Board will conduct initial due diligence appraisals of potential business
or projects and, where they believe further investigation is warranted, intend
to appoint appropriately qualified persons to assist. The Proposed Board
believes its expertise will enable it to determine quickly which opportunities
could be viable and so progress quickly to formal due diligence. The Company
will not have a separate investment manager. The Company proposes to carry out
a comprehensive and thorough project review process in which all material
aspects of a potential project or business will be subject to rigorous due
diligence, as appropriate.
END
(END) Dow Jones Newswires
July 21, 2017 02:00 ET (06:00 GMT)