Corcel PLC Debt Refinancing (7909E)

TIDMCRCL

RNS Number : 7909E

Corcel PLC

31 October 2022

Corcel PLC

("Corcel" or the "Company")

Debt Refinancing

31 October 2022

Corcel, the natural resource exploration and development company with interests in battery metals and flexible energy generation and storage announces it has agreed with the lenders of the funding arrangements (the "Existing Debt") announced on 21 February 2022 (the "Lenders") to refinance its outstanding obligations originally due 31 October 2022.

The Lenders, following discussions with the board of Corcel, have confirmed their continued support for Corcel, including the recently announced proposed PNG restructuring and introduction of a cornerstone investor. To enable Corcel to free up further capital for its immediate operational and capital commitments, the Lenders have agreed to restructure the Existing Debt on a pari passu basis to facilitate this, and the strategy of Corcel more generally.

The Company has agreed with its Lenders to make a GBP150,000 immediate repayment with the residual balance of GBP627,600 being deferred to 31 March 2023. The Company has further agreed a refinancing fee of GBP77,760 to be paid by 23 December 2022 in new ordinary shares of the Company to be priced at the lowest VWAP of the Company's shares ("Strike Price") as traded between 31 October 2022 and 20 December 2022. The Lenders will have the right to convert any outstanding balances into equity at the Strike Price between 20 December 2022 and 31 March 2023. The outstanding balances will accrue a monthly coupon of 1%.

The Company has further agreed to a series of potential accelerated repayment scenarios in the event of asset sales for cash or new equity placings before the balance of the loan amounts falling due.

The Company has the option on 20 December 2022 to either (a) pay a fee of GBP475,000 in aggregate to the Lenders or (b) extend 112,500,000 of existing warrants currently allowing purchase of new ordinary shares at a price of GBP0.004 until 20 February 2024, to an extended term where they remain exercisable until 31 March 2025, with a related resettability clause associated with these warrants to also be extended until 31 December 2023. The resettability clause outlines that the subscription price of the warrants shall adjust if the Company raises greater than GBP50,000 at a price lower than GBP0.004 and that the total number of warrants shall be recalculated such that the total value of the warrants remains the same.

James Parsons, Executive Chairman of Corcel noted:

"Having entered into extensive discussions with the Lenders, including further presentation of the ongoing plans and strategy for the Company, myself and the board are pleased to be able to continue to work with Align and RiverFort for the furtherance of the short- and longer-term objectives for Corcel. During these challenging times in global and domestic markets, the continued support of our key stakeholders, such as the Lenders and the previously announced cornerstone investor, is seen as a testament to the work that is ongoing and which lays ahead and myself and the board are grateful for their continued support now, and historically."

For further information, please contact:

Scott Kaintz 020 7747 9960 Corcel Plc CEO

James Joyce / Andrew de Andrade 0207 220 1666 WH Ireland Ltd NOMAD & Broker

Patrick d'Ancona 0207 3900 230 Vigo Communications IR

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

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October 31, 2022 12:13 ET (16:13 GMT)