MetalNRG plc
(‘MetalNRG’ or the ‘Company’)
Issue of Equity
for Share Element of Cobalt Acquisitions
25 July 2017
MetalNRG plc (LON:MNRG), the natural resource investing
company quoted on the NEX Exchange Growth Market in London is pleased to announce the issue of
equity in the Company at 1.5p per share in respect of the recently
announced transactions in Australian and United States cobalt opportunities.
Paul Johnson, Chief
Executive Officer of MetalNRG commented: “I am pleased to
confirm this issue of equity which demonstrates that the first
stage investment into both the Australian and US cobalt
opportunities is complete.
We look forward to releasing exploration updates from across our
existing cobalt portfolio, alongside any new project opportunities,
in the near future.”
Issue and allotment of new MetalNRG
ordinary shares
On 29 June 2017, MetalNRG
announced an agreement to acquire cobalt licences in Western Australia (the ‘Palomino Cobalt
Project’). Under the terms of the agreement, the Company
agreed, inter alia, to issue new Ordinary Shares (‘MetalNRG
shares’) to the vendors. The Company has now issued 1,000,000
MetalNRG shares to the vendors at a deemed price 1.5p per
share.
On 12 July 2017, MetalNRG
announced an agreement to invest AUD$ 200,000 (c. £118,000) for a
18.18% holding in US Cobalt Pty Limited (‘US Cobalt’). Under
the terms of the investment the Company also secured a 3 month
option to acquire the remaining 81.82% of the shares of US Cobalt
for an option fee of AUD$50,000 (approximately £29, 507) to be
satisfied in MetalNRG shares. The Company has now issued
1,967,133 MetalNRG shares to the vendors at a deemed price of 1.5p
per share.
A total of 2,967,133 new MetalNRG shares have been issued and
these shares will rank, pari passu, in all respects with the
existing MetalNRG shares, including the right to receive all
dividends and other distributions declared, paid or made after the
date of issue. The new MetalNRG shares will be admitted to
trading on the NEX Exchange Growth Market.
Total Voting Rights
For the purposes of the Financial Conduct Authority's Disclosure
and Transparency Rules ("DTRs"), the issued ordinary share capital
of MetalNRG now consists of 138,826,404 ordinary shares with
voting rights attached (one vote per share). There are no shares
held in treasury. This total voting rights figure may be used
by shareholders as the denominator for the calculation by which
they will determine whether they are required to notify their
interest in, or a change to their interest in, MetalNRG under the
DTRs.
The Directors of the Company accept
responsibility for the contents of this announcement.
Contact Details:
METALNRG PLC
Paul Johnson (Chief Executive
Officer) +44 (0) 7766 465617
NEX Exchange Corporate Adviser
PETERHOUSE CORPORATE FINANCE LIMITED
Guy Miller/Mark Anwyl
+44 (0) 20 7469 0930
Corporate Broker
S I CAPITAL
Nick Emerson/Andy Thacker
+44 (0) 1483 413500
Notes for Editors:
MetalNRG is quoted on the NEX Exchange Growth Market in
London with the stock code MNRG
and is a natural resource investing company.
NEX Exchange:
Investors wishing to consider trading in NEX Exchange quoted
shares can access this market from numerous brokers, a full list of
which can be accessed through the following link:
http://www.nexexchange.com/for-investors/find-a-broker/
The list accessed through the link above includes certain
brokers offering online trading of NEX Exchange quoted shares.
The Investing Policy of the Company is
as follows:
The Company’s proposed new Investing Policy is to invest in
and/or acquire companies and/or projects within the natural
resources and/or energy sector with potential for growth and value
creation, over the medium to long term. The Company will also
consider opportunities in other related sectors if the Board
considers there is an opportunity to generate an attractive return
for Shareholders. This will include natural resource technologies
and fintech opportunities offering leverage to resource
identification, processing, recording, storage and trading
businesses.
Where appropriate, the Board may seek to invest in businesses
where it may influence the business at a board level, add their
expertise to the management of the business, and utilise their
significant industry relationships.
The Company’s interests in a proposed investment and/or
acquisition may range from a minority position to full ownership
and may comprise one investment or multiple investments. The
proposed investments may be in either quoted or unquoted companies;
be made by direct acquisitions or farm-ins; and may be in
companies, partnerships, earn-in joint ventures, debt or other loan
structures, joint ventures or direct or indirect interests in
assets or projects.
The Board may focus on investments where intrinsic value can be
achieved from the restructuring of investments or merger of
complementary businesses. The Board expects that investments will
typically be held for the medium to long term, although short term
disposal of assets cannot be ruled out if there is an opportunity
to generate an attractive return for Shareholders. The Board will
place no minimum or maximum limit on the length of time that any
investment may be held. The Company may be both an active and a
passive investor depending on the nature of the individual
opportunity.
Where the Company builds a portfolio of related assets it is
possible that there may be cross-holdings between such assets. The
Company does not currently intend to fund any investments with debt
or other borrowings, but may do so if appropriate. Investments in
early stage assets are expected to be mainly in the form of equity,
with debt potentially being raised later to fund the development of
such assets. Investments in later stage assets are more likely to
include an element of debt to equity gearing. The Board may also
offer new Ordinary Shares by way of consideration as well as cash,
thereby helping to preserve the Company’s cash for working capital
and as a reserve against unforeseen contingencies including, for
example, delays in collecting accounts receivable, unexpected
changes in the economic environment and operational problems.
The Board will conduct initial due diligence appraisals of
potential business or projects and, where they believe further
investigation is warranted, intend to appoint appropriately
qualified persons to assist. The Proposed Board believes its
expertise will enable it to determine quickly which opportunities
could be viable and so progress quickly to formal due diligence.
The Company will not have a separate investment manager. The
Company proposes to carry out a comprehensive and thorough project
review process in which all material aspects of a potential project
or business will be subject to rigorous due diligence, as
appropriate.