8 May 2019
(the "Company" or “MetalNRG”)
MetalNRG plc (NEX:MNRG), the natural resources investing company quoted on the NEX Exchange Growth Market in London, provides a strategic update to its investors following the announcement on 3 May 2019 (the “May Announcement”). This announcement covers a progress update on: (1) the Company’s gold mining asset in Arizona, U.S.A (the “Gold Ridge Project”); (2) the Farm-in Agreement with IMC; (3) the earn-in agreement with Mkango Resources Limited (“Mkango”) for the Company to earn up to 75% of the economic interest in the Thambani Licence controlled by Mkango in Southern Malawi over a 3 year period (the “Transaction Agreement”) and (4) the status of the Company’s application for its ordinary shares of nominal value 0.01 pence each to be admitted on the standard listing segment of the official list of the Financial Conduct Authority and the admission to trading on the main market for listed securities of London Stock Exchange plc (together, "Admission").
Gold Ridge Project:
In the last few months, the Company has continued working towards finalising its plans to explore the Gold Ridge Project. MetalNRG can confirm that it has now completed the planning process and will move the Gold Ridge Project forward once it has secured funding. The funding will enable MetalNRG to secure the appropriate permits and to begin the necessary works on the available data and the mines at the Gold Ridge Project.
Farm-in Agreement with IMC:
As per the May Announcement, MetalNRG and IMC, via a Side Letter, have suspended the Farm-In Agreement and all their contractual and financial obligations thereunder for the duration of the Uranium Ban, whilst MetalNRG still maintains its current financial interest. IMC has continually held that its planned activities at the Kamushanovskoye uranium deposit in Kyrgyzstan of 'cleaning' the peat and contained groundwater, which carries high levels of uranium (such uranium often contaminating the local water supplies), would amount to those of processing waste. The Company will continue to monitor the proposed Uranium Ban closely and maintain communication with IMC on the possibility of any exemption to the Uranium Ban which has been suggested. If the Uranium Ban is revoked, or IMC obtains a Potential Exemption, the Company, in its sole discretion, may reconsider its current suspension of financial obligations with IMC and seek to bring the Uranium Project into production.
Transaction Agreement with Mkango:
MetalNRG is currently progressing with due diligence on the Thambani Licence held by Mkango and confirms its intention to enter into the Transaction Agreement. MetalNRG and Mkango are working towards entering into the Transaction Agreement on or before 30th June 2019.
Prior to the proposed Uranium Ban, MetalNRG had submitted a draft prospectus to the FCA in connection with its application for Admission. Due to the unforeseen nature of the proposed Uranium Ban, the Company is temporarily delaying the application for Admission, and will make further announcements in due course.
Rolf Gerritsen, CEO of MetalNRG commented: “MetalNRG is committed to migrating to the main market for listed securities of the London Stock Exchange plc and adding real value to its shareholders, however due to unforeseen circumstances we have had to slow the process down for now. We are working closely with our partners, IMC and Mkango to make progress and will keep investors informed of developments as and when possible”.
Rolf Gerritsen, CEO of MetalNRG, arranged for the release of this announcement.
The directors of the issuer accept responsibility for the contents of this announcement.
For further information, please contact:
MetalNRG PLC Rolf Gerritsen (Chief Executive Officer) +44 (0) 20 7796 9060 NEX Exchange Corporate Adviser PETERHOUSE CAPITAL LIMITED Guy Miller/Mark Anwyl +44 (0) 20 7469 0930 Corporate Broker SI CAPITAL Nick Emerson +44 (0) 1483 413500
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