Covid-19 Business Impact

RNS Number : 7024H
MetalNRG PLC
26 March 2020
 

 

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

 

 

 

26th March 2020

 

MetalNRG plc

(The "Company" or "MetalNRG")

 

COVID-19 BUSINESS IMPACT

 

 

MetalNRG plc (LON:MNRG) the natural resource investing and exploration company gives an update on the impact of COVID-19 on its business and prospects.

During this time the Company's guiding principles are people first, protect business continuity, build and secure liquidity and engage with our stakeholders, while still seeking business investment opportunities to add shareholder value.

 

As a result of applying these principles we have stopped all travel, until the ban on travel is removed by the Government. The Company, with input from Ed Lukins at Orrick, our legal advisors, has set up its Annual General Meeting to be held electronically, so as not to put our shareholders, advisers, Board members and management at risk. Last but not least we are currently all working from home while progressing the Company's business.

 

The impact of Covid-19 on our Gold Ridge project in Arizona, is that on site work has stopped, we are advancing our planning work and making preparations to be in a position to go back on site as soon as we have confirmation that it is safe to do so and have the human resources and tools to implement the next stage of work.

 

The Oil & Gas transaction due diligence process on the potential acquisition in Romania has been completed. However, due to the recent oil price collapse and the unfavourable short to medium term forecasts, which are detrimental to the economy of the project under consideration, we have proposed alternative commercial terms to the Vendor. The new terms are being considered by the Vendor and we expect them to revert by the end of the current month, although some slippage can be expected due to Covid-19.

 

Nevertheless, with the current market turmoil, especially in the oil and gas sector, we have been presented with additional and potentially attractive transactions. Following the initial desktop assessment, we are now actively pursuing projects that meet our strategic intent, projects that offer short term cashflow and additional exploration upside that can be funded by the short term cashflow generated form the operation.

 

We continuously review our cash and liquidity position and are confident that we will be able to weather the storm and come out of this crisis stronger than before.

 

This is undoubtedly an uncertain time for all, and shareholders will have a number of questions that they would like to ask, please feel free to get in touch.

 

I have set up a special email for shareholders to contact me directly with any questions. I will answer within the constraints of insider dealing legislation and the Market Abuse Regulation the email to use is, This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

Rolf Gerritsen, CEO of MetalNRG commented "My total focus is to navigate MNRG through this difficult period and come out the other end in a stronger position. Shareholders can contact me via the email that has been set up and which is dedicated to their questions. I will personally handle all questions and answer all reasonable questions within the market regulatory framework."

 

 

For further information, please contact:

 

METALNRG PLC - Rolf Gerritsen (Chief Executive Officer)

+44 (0) 20 7796 9060

Joint Broker PETERHOUSE CAPITAL LIMITED - Guy Miller/     Duncan Vasey/Lucy Williams

+44 (0) 20 7469 0930

Joint Broker SI CAPITAL LIMITED- Nick Emerson

+44 (0) 1483 413500

 

 

 


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