MetalNRG plc (NEX:MNRG), the natural resource investing company quoted on the NEX Exchange Growth Market in London, is pleased to announce an agreement to acquire cobalt licences in Western Australia (hereinafter “the “Palomino Cobalt Project” or the “Project”).
- MetalNRG takes first investing step with the creation of the Palomino Cobalt Project in Western Australia;
- The Project consists of licence applications submitted and pending to be submitted applications in respect of ground prospective for cobalt based on historic exploration;
- Total acquisition cost of approximately £55,000 with 83% of acquisition cost payable in MetalNRG new ordinary shares priced at 1.5p per share;
- MetalNRG forms Cobalt Division to act as a repository for this transaction and anticipated additional cobalt interests.
Paul Johnson Chief Executive Officer of MetalNRG, commented: “I am very pleased to announce this first important step by MetalNRG to invest in Australian cobalt exploration.
“Cobalt is a highly significant commodity which has seen its market price increase from circa US$24,000/t a year ago to approaching US$59,000/t of late. The forward supply/demand characteristics and cobalt’s importance in the emerging battery technology sector mean that despite the dramatic increase in price over the last year there is potential for the cobalt price to be maintained, or better still increase further.
In recognition of our excitement and interest in this growing market, we are launching a Cobalt Division. The Cobalt Division will focus on the identification of cobalt deposits in safe jurisdictions around the world, including Australia, the United States and Canada, and we anticipate further cobalt transactions in the near future.
Naturally shareholders and investors should note that until further transactions are crystallised and announced to the market via regulatory release, there can be no certainty that additional commercial deals will be completed.
With regard to this specific transaction, we have chosen to limit the amount of specific information released at this time to enable the Company and vendor working together to submit additional cobalt licence applications in the vicinity. Further detailed transactional information will follow in due course when that process has been completed.
I would like to personally thank our shareholders who have been constantly supportive as we have undertaken an immense amount of background work. We trust that this work will be evidenced clearly in the coming weeks and months as progress announcements are released.”
The Palomino Cobalt Project is an exploration block of circa 40 square kilometres in Western Australia covered by exploration licence applications that we understand have been submitted on a first-in-line basis. The ground is prospective for cobalt and with significant evidence of cobalt mineralisation from surface based exploration work and notably stream sediment sampling.
In addition the Company, with the vendors, will be seeking to secure additional ground in the area of a similar square kilometre footprint with immediate effect to double the area covered by the existing applications.
To secure the right to acquire 100% of the above licence applications, when they become granted licences and subject to the normal regulatory approvals needed for licence transfers, MetalNRG has agreed to cover the direct costs of the vendor up to circa A$15,000 and to issue one million MetalNRG shares to the vendors at a deemed price of 1.5p per new ordinary MetalNRG share.
Upon granting of the applications MetalNRG will issue a further two million shares to the vendors at a deemed price of 1.5p per new MetalNRG ordinary share.
Further detailed project and transactional information will be provided when the additional licence applications over adjacent ground has been secured.
The Directors of the Company accept responsibility for the contents of this announcement.
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