MetalNRG plc (LON:MNRG), the natural resource investing and exploration company, announces that its directors have resolved not to proceed with the planned acquisition of Lake Victoria Gold Ltd (“LVG”) (announced 20th October 2020).
Following the last announcement to market on 24th December 2020, detailing the terms of a variation agreement with LVG, MetalNRG has been working on reassessing the transaction and completing further due diligence.
In the opinion of the Board, the original attractiveness of the transaction’s value has significantly diminished, and the Board is not satisfied that certain aspects of tenement ownership can be resolved with the certainty needed to proceed in the near term.
MetalNRG has informed LVG of its decision.
Rolf Gerritsen, CEO of MetalNRG commented:
“We have worked tirelessly on the LVG transaction, however, we have concluded that it is not possible to bring LVG into production, as our plans called for, within 12 months, or at close to the budget originally presented and accordingly we have decided not to proceed. This is disappointing news but the Board set prudent criteria for acquisitions to create near term shareholder value and we feel that we can no longer support the LVG proposition.”
The person who arranged for the release of this information is Rolf Gerritsen, the Company’s Chief Executive Officer.
