Zak Mir talks to Chris Chadwick, CEO of MetalNRG, the natural resources company, provided an update regarding the progress of its agreement to acquire the entire issued share capital of Compagnie Minière de l’Oumejrane S.A. from Managem S.A. as announced on 17 October 2024.
They discuss how the $25m funding gap has been closed via bridging finance, the likely effect of the rising copper price, and operational efficiencies to be made at MNRG’s newly acquired producing mine in Morocco.
Highlights
· The Company, working closely with Managem, is making significant positive progress towards the completion of the Acquisition, with a number of conditions precedent cleared.
· A term sheet has been entered into with a strategic investor to provide, by way of an equity subscription, subject to customary conditions precedent, the remaining US$5 million of the initial US$30 million consideration for the Acquisition (the “Subscription Term Sheet”). As announced on 17 October 2024, a fund managed by Orion Resource Partners (“Orion”) is providing a US$25 million convertible loan note to MetalNRG to enable completion of the Acquisition.
· A Competent Person’s Report (the “CPR”) has been prepared by Mining Plus Pty Ltd (“Mining Plus”) for the Company on the Oumejrane copper mine owned by CMO (the “Oumejrane Mine”). An executive summary of the CPR (the “Executive Summary”) is available to view, subject to investor affirmation of customary disclaimers, on the Company’s website at:
https://www.metalnrg.com/investors/shareholder-documents
Christopher Chadwick, Chief Executive Officer of MetalNRG, commented: “We are making very good progress with the process to complete the CMO acquisition and are delighted to have reached agreement with a strategic investor to provide the remaining US$5 million required for the initial consideration. This is in addition to the US$25 million that Orion has already committed. We are progressing the FCA prospectus review process and will be holding a general meeting of the Company on 5 December 2024 to seek shareholder approval of the necessary resolutions to implement the Acquisition. In parallel, we are developing our plans for CMO post completion of the Acquisition. These are exciting times for MetalNRG as we progress our plans to become Atlas Metals Group and the owner of a producing, cash generative operation in Morocco. I look forward to providing further updates as matters progress.”
For the purposes of UK MAR, the person responsible for arranging release of this announcement on behalf of MetalNRG is Christopher Chadwick, Chief Executive Officer.
