TIDMCRCL
RNS Number : 8960E
Corcel PLC
16 March 2022
Corcel PLC
("Corcel" or the "Company")
Fundraising, Debt Conversion and Nickel Project Acceleration
16 March 2022
Corcel, the natural resource exploration and development company
with interests in battery metals and flexible energy generation and
storage is pleased to announce that following recent positive
developments in the Nickel market it has elected to accelerate the
advancement of the Company's nickel-cobalt assets in PNG. In
support of this effort, it has agreed a fundraising of GBP365,000
alongside the conversion of GBP170,000 of outstanding debt.
Highlights:
o Fundraising of GBP365,000 at a price of GBP0.015 supports an
acceleration of the Wowo gap development program in light of recent
all-time highs in nickel prices
o The Directors have advised the Company of their intention,
additionally to the placing, to subscribe for GBP35,000 of stock at
the market price once in an open period for trading
o Debt conversion of GBP170,000 into 11,333,333 new ordinary
shares (an effective price of 1.5p) reduces the Company's near-term
debt burden
Scott Kaintz, Chief Executive Officer, commented : "Nickel
performance and interest exceeding all expectations has led to the
opportunity to raise funding and reduce debt payments all designed
to accelerate our nickel interests, focussing on Wowo Gap in
particular. With nickel markets in turmoil and security of supply
being demanded by nickel users, we are actively pursuing this very
clear and material opportunity."
Equity Funding
The equity fundraising (the "Placing") will raise gross proceeds
of GBP365,000 from the issue of 24,333,332 new ordinary shares of
GBP0.0001 at a GBP0.015 ("Placing Price") per share ("Placing
Shares").
This placing has been agreed in lieu of the underwritten placing
of GBP350,000 originally announced on 21 February 2022, replacing
the underwritten portion in full and leaving 40,000,000 shares
available for issue under the Equity Share Agreement ("ESA") at a
price of GBP0.015 or higher and a 60/40 share in the Company's
favour for any receipts in excess of GBP0.015. The Company retains
the right to terminate the ESA at its election.
Three Directors have advised that they intend to subscribe for
GBP35,000 of stock at the market price once in an open period for
trading. Additionally, 1,460,000 shares are to be issued as placing
fees ("Fee Shares") associated with the fundraising.
Debt Conversion
As previously announced on 12 May 2021 and updated on 21
February 2022, the Company has now agreed to bring forward the
conversion of GBP170,000 of debt originally due on 30 April 2022 to
lenders arranged by Align Research Limited, through the issuance of
11,333,333 new ordinary shares ("Debt Shares") to the underlying
debtholders.
Nickel Project Acceleration
A portion of the proceeds of the Placing will be utilized to
accelerate the Company's activities at the Wowo gap nickel project
in Papua New Guinea, where the Company owns a 100% interest. With
JORC upgrade work and a Gap Analysis ongoing, the Company intends
now to also start parallel development of a Bankable Feasibility
Study with a view to fast track the Mining Lease Application taking
advantage of the strong market conditions.
Meanwhile, discussions on offtake continue with the Shandong New
Powder COSMO AM&T ("NPC"), with NPC stakeholders expected to
meet in China at the end of March to discuss the potential offtake
agreement in more detail as well as to work through the nickel
product specifications required by Chinese precursor plants, which
would process the nickel for end use in the NPC cathode plant.
Admission to Trading on AIM and Total Voting Rights
Application is being made to AIM for 12,793,333 shares to be
admitted to trading on AIM, the admission of which it is expected
on or around 21 March 2022. A further application is being made to
AIM for 24,333,332 shares to be admitted to trading on AIM, the
admission of which it is expected on or around 29 March 2022
In accordance with the provision of the Disclosure Guidance and
Transparency Rules of the Financial Conduct Authority, the Company
confirms that, following the issue of the Placing Shares, Debt
Shares and Fee Shares, its issued ordinary share capital will
comprise 437,686,666 ordinary shares.
All of the ordinary shares have equal voting rights and none of
the ordinary shares are held in Treasury. The total number of
voting rights in the Company will therefore be 437,686,666. The
above figure may be used by shareholders as the denominator for the
calculations to determine if they are required to notify their
interests in, or change to their interest in, the Company
Scott Kaintz 020 7747 9960 Corcel Plc CEO
James Joyce / Andrew de Andrade 0207 220 1666 WH Ireland Ltd
NOMAD & Broker
Simon Woods 0207 3900 230 Vigo Consulting IR
This announcement contains inside information for the purposes
of Article 7 of Regulation 2014/596/EU, which is part of domestic
UK law pursuant to the Market Abuse (Amendment) (EU Exit)
regulations (SI 2019/310) and is disclosed in accordance with the
Company's obligations under Article 17.
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END
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