MetalNRG Plc - US Cobalt Sale Agreement MetalNRG Plc - US Cobalt Sale Agreement PR Newswire
22 March 2018
(The "Company" or “MetalNRG”)
US COBALT SALE AGREEMENT
MetalNRG plc (NEX:MNRG), the natural resource investing company quoted on the NEX Exchange Growth Market in London is pleased to announce that, it has entered into a binding option agreement to sell it's 15.38% stake in private company, US Cobalt Pty Ltd (“US Cobalt”), the owner of Goodsprings Cobalt and Base Metals Project, located in the State of Nevada, USA, to Tyranna Resources Limited (“Tyranna”), an ASX listed exploration company (ASX: TYX).
Tyranna has executed a binding agreement to acquire US Cobalt, which thereby gives Tyranna the exclusive right to acquire 100% of US Cobalt by way of an off-market scrip for a scrip takeover.
-- MetalNRG currently holds 15.38% of US Cobalt Pty Limited and has agreed to the sale of its interest to Tyranna Resources Limited (ASX:TYX), a Perth based resources company, listed on the ASX securities exchange; -- Subject to due diligence and transaction completion MetalNRG to receive 21,719,457 shares in Tyranna, at a nominal value of AU$ 0.017 cents, for the full 15.38% interest MetalNRG holds in US Cobalt Pty Ltd; -- Tyranna has a current market capitalization of AU$14.2 million, and its shares are currently trading at AU$ 0.025 cents per share; -- At the current Tyranna share price MetalNRG’s 21,719,457 TYX shares would be valued at AU$542,986 or £300,000 at current exchange rates; -- MetalNRG has agreed to a 6 months trading hold on 25% of its holding in Tyranna; -- Further information on the transaction can be found on the Tyranna web site, https://www.tyrannaresources.com/. Rolf Gerritsen, MetalNRG’s Chief Executive Officer, commented from Perth: ““I am delighted to announce this sale agreement in respect of our interest in US Cobalt which will add a significant amount to the working capital of MetalNRG at an important time in our development and growth. Tyranna Resources are in a good position to drive shareholder value through the US Cobalt interest and with our shareholding we look forward to following the company’s developments. We now move on to further build our company as outlined in our strategic update of 23 February 2018. This is an exciting time for MetalNRG with numerous initiatives already underway." Key Commercial Terms Terms include: -- Cash payment of $100,000, for 14-day exclusive option agreement, payable to US Cobalt Pty Ltd; -- Tyranna has 14 days to complete due diligence in respect of the acquisition; -- Tyranna will issue 141,176,470 ordinary shares in Tyranna Resources Ltd at deemed price of AU$0.017. The shares will be issued pursuant to Tryanna's placement capacity under Listing Rule 7.1 (71,529,796 shares) and 7.1A (69,646,674 shares); -- MetalNRG will receive 21,719,457 of the shares issued representing 15.38% of the total shares issued; -- MetalNRG has agreed to a 6 month trading lock-in in respect of 25% of Tyranna shares received.
The Directors of the Company accept responsibility for the contents of this announcement.
MetalNRG PLC Rolf Gerritsen (Chief Executive Officer) +44 (0) 20 3778 0516 NEX Exchange Corporate Adviser PETERHOUSE CORPORATE FINANCE LIMITED Guy Miller/Mark Anwyl +44 (0) 20 7469 0930 Corporate Broker SI CAPITAL Nick Emerson +44 (0) 1483 413500
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