Caerus Mineral Resources PLC Cyprus Joint Venture Termination (2792D)
October 18 2022 - 6:37AM
UK Regulatory
TIDMCMRS
RNS Number : 2792D
Caerus Mineral Resources PLC
18 October 2022
18 October 2022
Caerus Mineral Resources PLC
('Caerus' or the 'Company')
Cyprus Joint Venture Termination
Caerus Mineral Resources PLC (LON:CMRS), the exploration and
resource development company focused on developing mineral
resources to support the global 'Clean Energy' initiative, would
like to announce its intention to terminate the Bezant Resources
Plc ("Bezant") and Caerus joint venture covering Troulli,
Kokkinopetra and Anglesides ("Troulli JV").
As stated in its interim results dated 30 September 2022, the
Company made a credit loss of GBP303k in the first half of 2022 due
to Bezant not having contributed its proportion of Troulli JV
funding. By now Caerus should have received at least US$500k from
Bezant.
After conversations with Bezant this morning, it was mutually
agreed to terminate the Troulli JV.
Chris Lambert, Chairman of Caerus Mineral Resources, said:
"It is with regret that we have mutually agreed to terminate the
JV agreement. Whilst this may seem to be a set-back, I see the JV
termination as a positive development for Caerus shareholders as it
enables us to reclaim 100% of Troulli and the other projects in the
joint venture. The JV agreement was poorly negotiated by the
previous board and was certainly detrimental to the Company's
interests. To give away 80% of the Troulli project, whilst having
to contribute 50% of the initial US$1m work programme funding, was
not a fair commercial transaction.
The JV agreement also allowed Bezant to put any new Cyprus
project acquired or pegged by Caerus into the JV, thereby gaining a
potential 80% interest. This clause left the Company with no
incentive to expand its footprint in Cyprus. In addition, the terms
of the processing contract between Caerus and Jubilee Metals Group
were once again heavily biased towards Jubilee, and detrimental to
any potential early cash flow to Caerus.
As indicated in the interim results, the board will continue to
implement more robust corporate governance structures to ensure
historic governance breaches cannot be repeated, and the Company
operates to best practice standards with all its stakeholders.
Caerus is focused on developing the significant opportunities
that can be generated through its relationship with EVM group. It
will update the market later in 2022 with an overview of this
strategy."
For further information, please contact:
Caerus Mineral Resources plc info@caerusmineralresources.com
Charles Long, Chief Executive Officer
Novum Securities
Jon Belliss +44 (0) 20 7399 9425
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END
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