Business
Partial Sale of Mt. Weld
Partial Sale of Mt. Weld.
About this update from Corcel Plc
[{"type":"text","content":"\n\n\n \nCorcel PLC\n(\"Corcel\" or the \"Company\")\n \nPartial Sale of Mt. Weld\n5 May 2023\nCorcel Plc (London AIM: CRCL), the extractive industries exploration and development company, with interests in battery metals including nickel, cobalt, and rare earth elements, announces that it has agreed the sale of a 20% interest in its Mt. Weld Rare Earth Element project to Extraction Srl, an Italian private company controlled by Mr Antoine Karam, for cash consideration of AUD$1,000,000 payable by 31 May 2023. Extraction Srl is a shareholder in Corcel, currently holding an interest of 9.61%, and, as previously announced, Mr Antoine Karam (a shareholder in Extraction Srl) is expected to join the Board following regulatory checks, which are underway.\nRiversgold Ltd (RGL) has agreed to waive its pre-emption rights over the sale of this interest, and Extraction Srl, will now become a party to the joint venture agreement originally announced on 4 January 2023. Following this transaction CRCL will have an 80% interest in the project pending the results of the first earn in period, where RGL may, by funding the current work programme and spending AUD 500,000 over a twelve-month period, earn in to 50% of the project. If the first earn in period is completed, which is expected to be the case, the resulting shareholdings would be RGL 50%, CRCL 30% and Extraction Srl 20%, at which time all parties would be responsible to pay their proportional share of future costs at the project. \nThe Board of Corcel is currently considering the use of proceeds from the partial sale of Mt. Weld and additional announcements will be made as appropriate. For the period ended 31 December 2022, the 20% interest in Mt. Weld being sold was held in in the Company's interim accounts balance sheet at £43,000, leaving a profit net of costs on disposal of the interest of approximately £475,472. \nAs announced on 2 May 2023, the joint venture partners have recently initiated a drilling programme at Mt. Weld, and additional announcements on these developments will be made in due course. \nJames Parsons, Corcel's Chairman, commented:\n\"I am delighted to announce this partial de-risking of our Mt Weld asset ahead of drilling results at the project.&n...