LONDON, UK: Corcel Plc , the pan Angolan / Brazilian Oil and Gas company with interests in battery metals mining and oil and gas, has announced its formal dispute of the previously announced pre-emption of Mambare.
In addition, the company has sold its 100% interest in the Wowo Gap nickel project in Papua New Guinea to Integrated Battery Metals Pte Ltd. (IBM) for up to US$2.8M. This transaction supersedes the battery metals joint venture previously announced on 1 March 2023, as the parties involved have agreed to separate the sale transactions due to the recent Angolan oil acquisition.
Under the agreement, IBM will acquire Corcel’s 100% interest in Niugini Nickel Pty Ltd, the direct holder of EL 1165 in Papua New Guinea and the sole license owner of the Wowo Gap nickel-cobalt project. The consideration for the transaction includes:
- A payment of US$500,000 to be made at completion, net of costs already incurred by IBM under the carried interest previously announced.
- An additional payment of US$900,000 to be made 24 months from completion.
- A final payment of US$1.4 million, structured as a profit share from the first $2.8 million of production at the Wowo Gap project.
- A 5% commission payable to Corcel for any investment or farm-in partners introduced to Niugini Nickel by Corcel within six months after completion.
This agreement marks another step in Corcel’s disposal of its historic mining assets as it focuses on its pivot to the oil and gas sector.
Commenting on the transaction, Corcel Chief Executive Officer Scott Kaintz stated, “Building on our recent agreements with IBM, who have been effectively operating Wowo Gap since January, this agreement splits the sale of Wowo Gap from that of Mambare and allows a key part of the original transaction to proceed independently from the disputed pre-emption on Mambare.”
The Company’s interest in Niugini Nickel, which includes the Wowo Gap nickel-cobalt project, was valued at £1.3 million on the interim balance sheet. The attributable losses for the year ended 30 June 2022 were approximately £170,000.
Corcel continues to execute its strategic plans and pursue opportunities in the oil and gas industry while divesting its non-core assets. The company remains focused on maximizing value for its shareholders and driving growth in its chosen sectors.
