Corcel PLC Mt. Weld Farm Out and Joint Venture (5773L)
January 04 2023 - 2:00AM
UK Regulatory
TIDMCRCL
RNS Number : 5773L
Corcel PLC
04 January 2023
Corcel PLC
("Corcel" or the "Company")
Mt. Weld Farm Out and Joint Venture
04 January 2023
Corcel, the natural resource exploration and development company
with interests in battery metals, including nickel, cobalt and rare
earth elements, announces that it has entered into a farm-out and
joint venture agreement with Riversgold Ltd (ASX:RGL) covering its
recently acquired rare earth elements project at Mt. Weld, in
Laverton, Australia.
Highlights
o AUD 30,000 in cash immediately payable to Corcel
o RGL earns a 50% interest in the project through paying 100% of
the work programme, spending AUD 500,000 over a 12-month period
o CRCL has the right, but not the obligation, to allow the
farm-in of a further 20% for an additional AUD 1,000,000 carry on
the work programme bringing total carried expenditure to AUD
1,500,000
o RGL will operate the tenements and direct the exploration
programme on behalf of Corcel
Chief Executive Officer, Scott Kaintz commented: "We are
delighted to follow directly our acquisition of Mt. Weld with a
farm out of half of the position to fund 100% of the near-term
development and exploration costs. This is highly accretive against
our acquisition cost and further reinforces the Board's view of the
project's immediate potential upside and overall
attractiveness.
Our partner, Riversgold Ltd, brings with them an experienced
exploration team well positioned to lead the work on the ground in
Australia. We look forward to working with them in 2023 to take the
project forward."
Transaction Overview
Corcel has entered into a farm-out and joint venture agreement
with Riversgold Ltd (together the "Parties"), a natural resource
exploration business listed on the ASX. The Parties have agreed
that RGL will make an immediate payment to Corcel of AUD 30,000 and
will also commit to funding 100% of an initial exploration
programme ("First Earning Period") of AUD 500,000; expected to be
completed in 2023.
Following total project expenditure of AUD 500,000 during the
First Earning Period, RGL will earn a 50% interest in the project.
If RGL fails to spend AUD 500,000 during the First Earning Period,
then it will be deemed to have withdrawn from the farm-in agreement
and will retain no interest in the project. As part of the farm in,
there is a minimum initial carried spend of AUD 100,000.
After the First Earning Period, Corcel may either fund the
project according to its shareholding, or elect to allow RGL (at
its discretion) to farm-in to an additional 20% of the project in
exchange for further funding of AUD 1,000,000 of exploration
expenditures (the "Second Earning Period"), bringing the total
funding of the project over both periods to AUD 1,500,000. If RGL
during the Second Earning Period fails to fund AUD 1,000,000 then
it will be deemed to have withdrawn from the Second Earning Period,
and will retain its initial 50% interest in the project.
The Parties will operate the project as an industry standard
joint venture with RGL managing the tenements and operating as
exploration manager. Additional announcements on the initial stages
of exploration activities at the site will be announced in due
course.
About the Mt. Weld REE Project
The "Mt Weld (P38/4489) Project," consists of granted mineral
tenement, located 1.4 km (0.9 miles) west-north-west of Lynas Rare
Earths Limited's Mt. Weld REE Mine near Laverton in Western
Australia. The Project covers 171 hectares in size and the tenement
straddles the mine access road to Lynas's Mt. Weld Mine. The
tenement is predominantly covered by recent transported sediments
obscuring the underlying geology. Four discrete undrilled magnetic
features, potentially representing carbonatite intrusive complexes
have been interpreted from open file high resolution magnetic
surveys and warrant further investigation.
For further information, please contact:
Scott Kaintz 020 7747 9960 Corcel Plc CEO
James Joyce / Andrew de Andrade 0207 220 1666 WH Ireland Ltd NOMAD & Broker
Patrick d'Ancona 0207 3900 230 Vigo Communications IR
The information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.
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