TIDMCRCL

RNS Number : 5654T

Corcel PLC

26 March 2021

Corcel PLC

("Corcel" or the "Company")

Half Year Report

26 March 2021

Corcel Plc ("Corcel" or the "Company"), the battery metals and flexible grid solutions company announces its unaudited half-yearly results for the six months ended 31 December 2020.

Board Statement

Dear Shareholders,

During the second half of 2020, and despite a highly challenging period driven by the global pandemic, Corcel plc has continued to progress its balanced portfolio of mineral exploration projects, coupled with UK based energy generation and storage. For over a year now the Company has been strategically focused upon the exciting intersection of battery metals mining and their end use in both energy storage and the electric vehicle revolution.

The Company has a 41% interest in the Mambare nickel-cobalt asset in Papua New Guinea, where it is targeting the near-term award of a mining lease to enable direct shipping ore operations. A critical milestone in this process was achieved in July 2020 when a positive outcome at the Warden's Hearing was secured. The Warden's Hearing is considered a broad analogue to local community planning approval in the UK and positions the Company for further permitting progress this year, initially with an environmental impact assessment permit expected shortly. Whilst permitting at Mambare, as with other large scale mining projects globally, is a relatively slow process, the prize is significant and the Company is committed to commercialising this large scale deposit.

One of the key priorities for the Company has been to increase its exposure to key battery metal positions prior to the widely expected supply crunch and associated structural price rise. With this in mind, the Company exercised its option to buy a further AUD 3.05m of debt in Resource Mining Corporation Limited ("RMI") , an ASX listed company with a 100% interest in the Wowo Gap nickel-cobalt project. This project is located 200km from the Papua New Guinea Capital of Port Moresby and some 150km southeast of the Company's existing Mambare asset. This positions the Company with a very substantial AUD 4.7m senior lender position in RMI, which was secured at a highly attractive 65% discount from the face value of the debt.

The Company also successfully completed its 2020 exploration programme at the Dempster Vanadium project in Yukon, Canada. Vanadium is another battery metal where supply is not expected to be able to grow sufficiently to support demand. The results, which were released shortly after the end of the period, highlight exceptionally good rock and soil samples, which, amongst other signs, indicate the presence and grade of the Canol Formation and enable good formation tracking. Preparation work is underway for a drill programme as part of a potential 2021 exploration programme.

The combination of the Company's Mambare asset and RMI's Wowo Gap asset provide a strong regional nickel-cobalt platform of scale which is expected, together with the Dempster Vanadium exposure, to provide material upside to shareholders as global electric vehicle growth fuels an ever-increasing demand for nickel and vanadium. The Company continues to explore further acquisitions in the battery metals space which are designed to broaden the Company's current exposure to substantially all of the key battery metals going forward.

Alongside the battery metals portfolio, the Company also materially progressed its UK based energy generation and storage portfolio, particularly the battery storage site at Burwell. A 100MW 132kV connection offer from UK Power Networks was secured in September 2020 and the Company bought out its partners in December such that it now owns 100% of the project and has autonomy and full strategic control of the project. Subject to securing the land lease, which is expected shortly, the Company is targeting "shovel ready" status before the summer. Meanwhile, further UK sites are under active evaluation to build a broader opportunity funnel in this increasingly essential space.

The Board and I want to thank our shareholders for their support during 2020, which we know has not always been easy given global events and the short-term challenges the Company has had to endure in order to build firm foundations for the future.

We believe Corcel is now extremely well placed to take advantage of the growing trends underpinning the world's transition to a low carbon economy, including multiple approaching material inflexion points.

Our commitment to build your company into a substantial value generating business remains absolute.

James Parsons

Executive Chairman

Consolidated statement of financial position

as at 31 December 2020

 
                                  Notes   31 December   31 December    30 June 
                                                 2020          2019       2020 
                                           Unaudited,    Unaudited,   Audited, 
                                              GBP'000       GBP'000    GBP'000 
 ASSETS 
 Non-current assets 
 Investments in associates 
  and joint ventures                6           1,971         1,947      1,947 
 Goodwill                                          29            42         25 
 Property, plant and equipment                     62             -          - 
 Right of use asset                                 -            44          - 
 FVTOCI financial assets            7               3            77          4 
 Trade and other receivables        8           2,310         1,318      1,690 
                                                       ------------ 
 Total non-current assets                       4,375         3,428      3,666 
 
 Current assets 
 Cash and cash equivalents                        180            40        415 
 FVTPL financial assets             7               -             5          5 
 Trade and other receivables                      179           836        175 
                                                       ------------ 
 Total current assets                             359           881        595 
 
 TOTAL ASSETS                                   4,734         4,309      4,261 
 
 
 EQUITY AND LIABILITIES 
 Equity attributable to 
  owners of the parent 
 Called up share capital            9           2,736         2,716      2,726 
 Share premium account                         23,779        22,320     23,032 
 Other reserves                                 1,117         (348)        908 
 Retained earnings                           (23,927)      (21,570)   (23,403) 
                                                       ------------ 
 Total equity attributable 
  to owners of the parent                       3,705         3,118      3,263 
 
 Non-controlling interest                          11            12         13 
                                         ------------  ------------  --------- 
 Total equity                                   3,716         3,130      3,276 
                                         ------------  ------------  --------- 
 
 LIABILITIES 
 Non-current liabilities 
 Lease liability                                   30            28         30 
 Long-term borrowings                               -             -        760 
 Total non-current liabilities                     30            28        790 
 
 Current liabilities 
 Trade and other payables                         185           373        183 
 Lease liability                                   12            17         12 
 Short term borrowings                            791           761          - 
                                                       ------------ 
 Total current liabilities                        988         1,151        195 
 
 TOTAL EQUITY AND LIABILITIES                   4,734         4,309      4,261 
 
 

The accompanying notes form an integral part of these financial statements.

Consolidated statement of income

for the period ended 31 December 2020

 
                                              Notes          6 months              6 months 
                                                       to 31 December        to 31 December 
                                                                 2020                  2019 
                                                           Unaudited,            Unaudited, 
                                                              GBP'000               GBP'000 
 
 Revenue 
 Management services                                                -                     - 
 
                                                                    -                     - 
 
 Administrative expenses                        3               (493)                 (371) 
 Impairment of loans and receivables                                -                   (8) 
 Loss of FVTPL investments                                        (5)                     - 
 Exploration expenses                                               -                   (1) 
 Other operating income                                             7                     - 
 Foreign currency gain                                              -                  (15) 
 Finance costs, net                                              (29)                 (222) 
 Share of gains in associates and 
  joint ventures                                                  (6)                   (3) 
 Loss for the period before taxation                            (526)                 (620) 
 Tax expense                                                        -                     - 
                                                     ----------------  -------------------- 
 Loss for the period after taxation                             (526)                 (620) 
                                                     ----------------  -------------------- 
 
 
 (Loss)/profit for the period attributable 
  to: 
 Equity holders of the parent                                   (524)                 (614) 
 Non-controlling interest                                         (2)                   (6) 
                                                     ----------------      ---------------- 
                                                                (526)                 (620) 
                                                     ----------------      ---------------- 
 
 Earnings per share 
 Loss per share - basic, pence                  4                0.23                  2.86 
 Loss per share - diluted, pence                4                0.23                  2.86 
 
 

Consolidated statement of comprehensive income

for the period ended 31 December 2020

 
                                                    6 months          6 months 
                                              to 31 December    to 31 December 
                                                        2020              2019 
                                                  Unaudited,        Unaudited, 
                                                     GBP'000           GBP'000 
 
 
 (Loss)/profit for the period                          (526)             (620) 
 Revaluation of FVTOCI investments                       (1)              (35) 
 Unrealised foreign currency gain/(loss) 
  arising upon retranslation of foreign 
  operations                                               -                16 
 Total comprehensive loss for the period               (527)             (639) 
 
 

The accompanying notes form an integral part of these financial statements.

Consolidated statement of changes in equity

for the period ended 31 December 2020

The movements in equity during the period were as follows:

 
                                 Share      Share    Retained       Other     Total Equity   Non-controlling     Total 
                               capital    premium    earnings    reserves     attributable         interests    equity 
                                          account                                to owners 
                                                                             of the Parent 
                               GBP'000    GBP'000     GBP'000     GBP'000          GBP'000           GBP'000   GBP'000 
 
 As at 1 July 2019 
  (audited)                      1,999     21,113    (20,960)       (329)            1,823                18     1,841 
 Changes in equity 
  for six months ended 
  31 December 2019 
 Profit/ (loss) for 
  the period                         -          -       (614)           -            (614)               (6)     (620) 
 Other comprehensive 
  (loss)/income for 
  the period                         -          -           4        (19)             (15)                 -      (15) 
 Transactions with 
  owners 
 Issue of shares                   717      1,255           -           -            1,972                 -     1,972 
 Share issue and 
  fundraising 
  costs                              -       (48)           -           -             (48)                 -      (48) 
 Total Transactions 
  with owners                      717      1,207           -           -            1,924                 -     1,924 
 As at 31 December 
  2019 (unaudited)               2,716     22,320    (21,570)       (348)            3,118                12     3,130 
                             ---------  ---------  ----------  ----------  ---------------  ----------------  -------- 
 
 
 As at 1 July 2020 
  (audited)                     2,726   23,032   (23,403)     908   3,263    13   3,276 
 Changes in equity 
  for six months ended 
  31 December 2020 
 Profit/ (loss) for 
  the period                        -        -      (524)       -   (524)   (2)   (526) 
 Other comprehensive 
  (loss)/income for 
  the period                        -        -          -     (1)     (1)     -     (1) 
 Total comprehensive 
  (loss)/income for 
  the period                        -        -      (524)     (1)   (524)   (2)   (527) 
 Transactions with 
  owners 
 Issue of shares                   10    1,002          -       -   1,012     -   1,012 
 Share issue and fundraising 
  costs                             -     (45)          -       -    (45)     -    (45) 
 Warrants issued                    -    (210)          -     210       -     -       - 
 Total Transactions 
  with owners                      10      747          -     210     967     -     967 
 As at 31 December 
  2020 (unaudited)              2,736   23,779   (23,927)   1,117   3,705    11   3,716 
                               ------  -------  ---------  ------  ------  ----  ------ 
 
 
 
                                             FVTOCI   Share-based   Warrants        Foreign       Total 
                                        investments      payments    Reserve       currency       other 
                                            reserve       reserve               translation    reserves 
                                                                                    reserve 
                                            GBP'000       GBP'000    GBP'000        GBP'000     GBP'000 
 As at 1 July 2019 (audited)                  (924)            76          -            519       (329) 
 Changes in equity for six months 
  ended 31 December 2019 
 Other Comprehensive income 
 Transfer of FVTOCI reserve 
  relating to impaired assets 
  and disposals                                (35)             -          -              -        (35) 
 Unrealised foreign currency 
  gains arising upon retranslation 
  of foreign operations                           -             -          -             16          16 
                                      -------------  ------------  ---------  -------------  ---------- 
 Total comprehensive income/(loss) 
  for the period                               (35)             -          -             16          19 
 As at 31 December 2019 (unaudited)           (959)            76          -            535         348 
                                      -------------  ------------  ---------  -------------  ---------- 
 
 
 As at 1 July 2020 (audited)               1   99   273   535     908 
 Changes in equity for six 
  months ended 31 December 2020 
 Other Comprehensive income 
 Transfer of FVTOCI reserve 
  relating to impaired assets 
  and disposals                          (1)    -     -     -     (1) 
 Unrealised foreign currency               -    -     -     -       - 
  gains arising upon retranslation 
  of foreign operations 
                                        ----  ---  ----  ----  ------ 
 Total comprehensive income/(loss) 
  for the period                         (1)    -     -     -     (1) 
 Warrants issued                           -    -   210     -     210 
 Total transactions with shareholders      -    -   210     -     210 
 As at 31 December 2020 (unaudited)        -   99   483   535   1,117 
                                        ----  ---  ----  ----  ------ 
 

Consolidated statement of cash flows

for the period ended 31 December 2020

 
                                              Note          6 months          6 months 
                                                      to 31 December    to 31 December 
                                                                2020              2019 
                                                           Unaudited         Unaudited 
                                                             GBP'000           GBP'000 
 
 Cash flows from operating activities 
 (Loss)/profit before taxation                                 (526)             (620) 
 Decrease/(increase) in receivables                             (68)                 7 
 Increase in payables                                             23               189 
 Impairment of loans and receivables                               -                 8 
 Share of loss of associates and 
  joint ventures, net of tax                                       6                 3 
 Interest payable                                                 29               222 
 Currency adjustments                                                               15 
 Net cash flows from operations                                (536)             (176) 
 
 
 Cash flows from investing activities 
 Proceeds from sale of FVTPL and 
  FVTOCI investments                                              14                99 
 Additional investments in JVs                                  (30)                 - 
 Additional investments in subsidiaries                          (4)                 - 
 Purchase of financial assets carried 
  at amortised cost                           8                (355)                 - 
 Purchase of property, plant and                                (62)                 - 
  equipment 
 Net cash flows from investing activities                      (437)                99 
 
 
 Cash flows from financing activities 
 Proceeds from issue of shares                                   738                53 
 Net cash flows from financing activities                        738                53 
 
 
 Net increase in cash and cash equivalents                     (235)              (24) 
 
 Cash and cash equivalents at the 
  beginning of period                                            415                64 
 Cash and cash equivalents at end 
  of period                                                      180                40 
 
 

Half-yearly report notes

for the period ended 31 December 2020

 
 1   Company and Group 
 
 
   As at 30 June 2020 and 31 December 2020 the Company had one 
    or more operating subsidiaries and has therefore prepared 
    full and interim consolidated financial statements respectively. 
   The Company will report again for the full year ending 30 
    June 2021. 
 
    The financial information contained in this half yearly report 
    does not constitute statutory accounts as defined in section 
    435 of the Companies Act 2006. The financial information 
    for the year ended 30 June 2020 has been extracted from the 
    statutory accounts of the Group for that year. Statutory 
    accounts for the year ended 30 June 2020, upon which the 
    auditors gave an unqualified audit report which did not contain 
    a statement under Section 498(2) or (3) of the Companies 
    Act 2006, have been filed with the Registrar of Companies. 
 
 
 2   Accounting Polices 
 
 
   Basis of preparation 
   The consolidated interim financial information has been 
    prepared in accordance with IAS 34 'Interim Financial Reporting'. 
    The accounting policies applied by the Group in these condensed 
    consolidated interim financial statements are the same as 
    those applied by the Group in its consolidated financial 
    statements as at and for the year ended 30 June 2020, which 
    have been prepared in accordance with IFRS. 
   During the period the following new standards and amendments 
    were adopted. The adoption of these standards has not had 
    a material impact on the financial information of the Group 
    in future periods. 
 
          *    Amendments to References to Conceptual Framework in 
               IFRS Standards - effective from 1 January 2020; 
 
 
          *    Definition of Material (Amendments to IAS 1 and IAS 
               8) - effective from 1 January 2020; 
 
 
          *    Amendments to IFRS 9, IAS 39 and IFRS17: Interest 
               Rate Benchmark Reform; 
 
 
          *    Amendment to IFRS 3 Business Combinations - effective 
               1 January 2020. 
 
 3                                                                    Administrative expenses 
                                                                                                          6 months to    6 months to 
                                                                                                          31 December    31 December 
                                                                                                                 2020           2019 
                                                                                                            Unaudited      Unaudited 
                                                                                                              GBP'000        GBP'000 
                                                                       Staff Costs: 
                                                                       Payroll                                    220            150 
                                                                       Pension                                     10              5 
                                                                       Consultants                                 10             24 
                                                                       HMRC / PAYE                                 26             11 
                                                                       Professional Services: 
                                                                       Accounting                                  26             22 
                                                                       Legal                                       26             11 
                                                                       Marketing                                   43             40 
                                                                       Funding costs                                9              - 
                                                                       Other                                       34              - 
                                                                       Regulatory Compliance                       57             42 
                                                                       Travel                                       2             17 
                                                                       Office and Admin Costs: 
                                                                       General                                      8              2 
                                                                       IT costs                                     4              3 
                                                                       Rent - Main Office                          12             25 
                                                                       Other lease arrangements                     -             16 
                                                                       Insurance                                    6              3 
                                                                                                        -------------  ------------- 
                                                                       Total administrative expenses              493            371 
                                                                                                        -------------  ------------- 
 
 
 
 4   Loss per share 
 
 
   The following reflects the loss and share data used in the 
    basic and diluted profit/(loss) per share computations: 
 
 
                                                                 6 months to            6 months to 
                                                                 31 December            31 December 
                                                                        2020                   2019 
                                                                   Unaudited             Unaudited* 
 
  Loss attributable to equity holders 
  of the parent company, in Thousand 
  Sterling (GBP'000)                                                     524                    614 
 
  Weighted average number of Ordinary 
  shares of GBP0.0001 in issue, 
  used for basic and diluted EPS                                 225,302,423             21,495,874 
 
  Loss per share - basic and diluted, 
  pence                                                                 0.23                   2.86 
 
  *On 23 December 2019, the 1 for 100 Share Consolidation 
   was completed and the post-consolidation share capital consists 
   of 86,873,352 Ordinary Shares of GBP0.0001 each. Comparative 
   weighted average number of ordinary shares is adjusted for 
   the share 100:1 share consolidation. 
 
 
       At 31 December 2020 and at 31 December 2019, the effect 
        of all the instruments is anti-dilutive as it would lead 
        to a further reduction of loss per share, therefore they 
        were not included into the diluted loss per share calculation. 
       Options and warrants that could potentially dilute basic 
        EPS in the future, but were not included in the calculation 
        of diluted EPS because they are anti-dilutive for the periods 
        presented: 
                                                                    6 months            6 months to 
                                                                          to            31 December 
                                                                 31 December                 2019 * 
                                                                        2020 
                                                                   Unaudited              Unaudited 
 
       Share options granted to employees 
        - total, of them                                           6,212,534              3,171,967 
 
         *    Vested at the end of the reporting period              122,900                122,900 
 
         *    Not vested at the end of the reporting period        6,089,634              3,049,067 
       Warrants given to shareholders 
        as a part of placing equity instruments 
        - not all conditions met and/or 
        out of the money                                          98,339,078              7,206,782 
                                                              --------------      ----------------- 
 
       Total number of instruments in 
        issue not included into the fully 
        diluted EPS calculation                                  104,551,612             10,378,749 
                                                              --------------      ----------------- 
 
 

*30 June 2019 numbers were retrospectively adjusted for 100:1 share consolidation.

 
 5   Segmental analysis 
 
 
  Since the last annual financial statements, the Group has 
   re-considered its operational segments. 
       For the six-month period            Battery    Flexible Grid          Corporate 
        to 31 December 2020         Metals (Nickel        Solutions    and unallocated 
                                     and Vanadium)    (FGS and WDD)                        Total 
                                           GBP'000          GBP'000            GBP'000   GBP'000 
       Revenue                                   -                -                  -         - 
 
       Result 
       Segment results                        (10)             (30)              (454)     (494) 
                                  ----------------  ---------------  -----------------  -------- 
       Loss before tax and 
        finance costs 
       Interest payable                                                                     (30) 
       Loss for the period 
        before taxation 
       Taxation expense                                                                        - 
                                                                                        -------- 
       Loss for the period 
        after taxation                                                                     (524) 
       Total assets at 31 
        December 2020                        4,281              158                295     4,734 
                                  ----------------  ---------------  -----------------  -------- 
 
 
 
 
  For the six-month period            Battery   Flexible Grid          Corporate 
   to 31 December 2019         Metals (Nickel       Solutions    and unallocated 
                                and Vanadium)                                        Total 
                                      GBP'000         GBP'000            GBP'000   GBP'000 
  Revenue                                   -               -                  -         - 
 
  Result 
  Segment results                         (3)            (29)              (366)     (398) 
                             ----------------  --------------  -----------------  -------- 
  Loss before tax and 
   finance costs 
  Interest payable                                                                   (222) 
  Loss for the period 
   before taxation                                                                   (620) 
  Taxation expense                                                                       - 
                                                                                  -------- 
  Loss for the period 
   after taxation                                                                    (620) 
  Total assets at 31 
   December 2019                        3,264             107                938     4,309 
                             ----------------  --------------  -----------------  -------- 
 
 
 
 6    Investments in associates and joint ventures 
                                        31 December   31 December    30 June 
                                               2020          2019       2020 
                                          Unaudited     Unaudited    Audited 
                                            GBP'000       GBP'000    GBP'000 
  At the beginning of the period              1,947         1,950      1,950 
      Additional investments in JVs              30             -          - 
  Share of loss for the period 
   using equity method                          (6)           (3)        (3) 
  At the end of the period                    1,971         1,947      1,947 
                                       ------------  ------------  --------- 
 
 
 7   Financial assets 
 
 
                                        31 December   31 December    30 June 
                                               2020          2019       2020 
                                          Unaudited     Unaudited    Audited 
                                            GBP'000       GBP'000    GBP'000 
  FVTOCI financial instruments 
   at the beginning of the period                 4           178        178 
  Disposals                                       -          (55)      (132) 
  Revaluations and impairment                   (1)          (45)       (42) 
  FVTOCI financial assets at 
   the end of the period (unaudited)              3            77          4 
                                       ------------  ------------  --------- 
 
 
                                        31 December   31 December    30 June 
                                               2020          2019       2020 
                                          Unaudited     Unaudited    Audited 
                                                GBP           GBP        GBP 
  FVTPL financial instruments 
   at the beginning of the period                 5             5          5 
  Disposals                                     (5)             -          - 
  FVTPL financial assets at 
   the end of the period (unaudited)              -             5          5 
                                       ------------  ------------  --------- 
 
 
 8   Debt Purchased from Resource Mining Corporation Limited 
 
      On 7 April 2020, the Company announced the partial purchase 
      of the corporate debt of Resource Mining Corporation Pty 
      Ltd, the 100% owner of the WoWo Gap nickel-cobalt project 
      in Papua New Guinea. The Company agreed to purchase AUD 1.7 
      million of outstanding corporate debt in RMI from Sinom Hong 
      Kong Limited. The consideration was GBP178,096 cash plus 
      13,288,982 new ordinary shares, representing aggregate consideration 
      of GBP324,275, being a 62% discount to the face value of 
      the debt. The new shares were subject to a lock-up of one 
      year. 
 
      During the reporting period, the Company has also exercised 
      the 6-month option to purchase the remaining RMI debt of 
      AUD 3.05 million for consideration of 23,711,018 new ordinary 
      shares and AUD 640,000 in cash (GBP355,259), which represents 
      a similar discount to the initial acquisition. All the loan 
      notes are interest free and unsecured. Directly attributable 
      transactions costs were also included in the carrying value 
      of the debt bringing the total of the debt value to GBP987,121 
      on 31 December 2020. 
 
 
 9   Share Capital of the Company 
 
 
   The share capital of the Company is as follows: 
 
 
                                                     Number of   Nominal, 
                                                        shares    GBP'000 
 
  Allotted, issued and fully paid 
  Deferred shares of GBP0.0009 each              1,788,918,926      1,610 
  A Deferred shares of GBP0.000095 each          2,497,434,980        237 
  B Deferred shares of GBP0.000099 each          8,687,335,200        860 
  Ordinary shares of GBP0.0001 each                189,910,596         19 
                                                                --------- 
  As at 1 July 2020 (Audited)                                       2,726 
 
  Issued ordinary shares on 26 October 
   2020 at GBP0.01 per share (cash placement)       75,000,000          8 
  Issued ordinary shares on 26 October               3,000,000          - 
   2020 at GBP0.01 per share (non-cash, 
   creditor settlement) 
  Issued ordinary shares on 28 October 
   2020 at GBP0.0098 per share (RMI debt 
   acquisition)                                     23,711,018          2 
                                                --------------  --------- 
  Total number of issued ordinary shares 
   of GBP0.0001                                    101,711,018         10 
                                                --------------  --------- 
 
  Deferred shares of GBP0.0009 each              1,788,918,926      1,610 
  A Deferred shares of GBP0.000095 each          2,497,434,980        237 
  B Deferred shares of GBP0.000099 each          8,687,335,200        860 
  Ordinary shares of GBP0.0001 each                291,621,614         29 
 
  At 31 December 2019 (Unaudited)                                   2,736 
 
 
 
 10   Capital Management 
      Management controls the capital of the Group in order to 
       control risks, provide the shareholders with adequate returns 
       and ensure that the Group can fund its operations and continue 
       as a going concern. 
 
       The Group's debt and capital includes ordinary share capital 
       and financial liabilities, supported by financial assets. 
 
       There are no externally imposed capital requirements. 
 
       Management effectively manages the Group's capital by assessing 
       the Group's financial risks and adjusting its capital structure 
       in response to changes in these risks and in the market. 
       These responses include the management of debt levels, distributions 
       to shareholders and share issues. 
 
       There have been no changes in the strategy adopted by management 
       to control the capital of the Group since the prior year. 
 
   11       Events after the reporting period 

Dempster Vanadium - Exploration Results

On 14 January 2021, the Company announced the results from the 2020 exploration program at the Dempster Vanadium project in the Yukon, Canada.

o 14 rock and 179 soil samples collected during work programme

o Rock samples yielded anomalous vanadium values ranging from 0.12% to 0.35% vanadium pentoxide ("% V2O5")

o 13 of the 14 rock samples returned anomalous zinc and silver values

o Soil samples returned vanadium values up to 0.82% V2O5 with 18 samples equal or greater to 0.40% V2O5

o Additional McGill University research results expected shortly

o Planning for the 2021 Exploration Program underway - expected to include drilling at the project

Issue of Equity

On 21 January 2021 the Company announced the issuance 2,880,000 new ordinary shares in the Company to a service provider.

Mambare Project Update

On 25 January 2021 the Company provided an update on the Company's Mambare nickel-cobalt asset in Papua New Guinea.

Resource Mining Corporation: Nickel Project Acquisition

On 10 February 2021 the Company announced an update in relation to its investment in Resource Mining Corporation Ltd, in Australia. RMI announced that it expanded its existing nickel portfolio by acquiring a controlling interest in a nickel project in Tanzania.

Fundraising, Directors' Dealings and TVR

On 18 February 2021, the Company announced that it agreed a funding package consisting of equity and debt.

The equity fundraising has directly raised gross proceeds of GBP300,000 from the issue of 24,000,000 new ordinary shares of GBP0.0001 (Ordinary Shares) at GBP0.0125 per share, being a 4% premium to the mid-price of the Company's ordinary shares at the close on 17 February 2021, being the latest practicable date prior to the publication of this announcement. The Company has also issued the equity investors with two warrants for every one share exerciseable at GBP0.02 per new warrant share at any time over the next two years.

Two Company Directors, James Parsons and Scott Kaintz, have also participated in the placing of 800,000 new ordinary shares and 1,600,000 warrants each. The Company has also agreed to issue a further 2,880,000 new Ordinary Shares at the Placing Price for an invoice received from Align Research in respect of research services, and who has agreed to receive the payment of their GBP30,000 invoice plus VAT, both paid in shares.

The debt element of the fundraising is a definitive loan agreement arranged by Align Research Limited (the "Lender") to provide, in aggregate, GBP300,000 through an unsecured loan facility, for working capital purposes in support of the execution of the Company's Flexible Grid Solutions and battery metals strategy. The Loan Facility, which is aimed at minimising dilution at current prices, provides for the loan ("Loan") to be drawn down in 5 tranches being GBP100,000 on 1 March 2021, and GBP50,000 on 1 April, 1 May, 1 June and 1 July respectively. The Loan plus a fixed coupon of 8% is repayable in full on maturity (except where the Lenders request part or all of the Loan and any coupon to be utilised in paying for the warrants), which is 28 December 2021. The coupon is repayable in either cash or shares at the Lender's discretion, and if in shares at a price of GBP0.013 per share.

As part of the Loan Facility, the Company will issue a total of 23,076,923 three-year warrants to the Lender. The Warrants are only exercisable when the share price per Ordinary Share is at or above GBP0.02 per share (a 63% premium to the current mid-price), at which point the holders can subscribe for ordinary shares in the Company at GBP0.013 per share, or at the future placing price of any subsequent fundraise during the first 12 months of the Warrants being issued, if lower than GBP0.013. Should the Warrants be exercised in whole or part during the term of the Loan Facility it has been agreed that the Warrant payment proceeds will be netted off against the repayment of the pro-rata drawn Loan Facility. In the event of the Warrants being exercised during this period the full 8% Loan Facility interest on each repayment will be payable in shares at a price of GBP0.013 per share. If the entirety of the Warrants are exercised, this would result in an additional 23,076,923 Warrant shares and 1,846,154 Interest Shares ultimately be issued.

For further information, please contact:

Scott Kaintz 020 7747 9960 CEO Corcel Plc

   Roland Cornish/ Rosalind Hill Abrahams   020 7628 3396          NOMAD   Beaumont Cornish Limited 

Thomas Smith 020 7392 1432 Broker Monecor (London) Ltd (ETX Capital)

Simon Woods 0207 3900 230 IR Vigo Communications

This announcement contains inside information under Article 7 of Regulation (EU) 596/2014 .

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March 26, 2021 03:00 ET (07:00 GMT)

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