Business
Sale of Wowo Gap Nickel Project
Sale of Wowo Gap Nickel Project.
About this update from Corcel Plc
[{"type":"text","content":"\n\n\nCorcel PLC\n(\"Corcel\" or the \"Company\")\nSale of Wowo Gap Nickel Project\n12 June 2023\nCorcel Plc (London AIM: CRCL), the pan Angolan / Brazilian Oil and Gas company, with interests across battery metals mining and oil and gas announces that it is formally disputing the previously announced pre-emption of Mambare and that it has further 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 agreement supersedes that covering the battery metals joint venture previously announced on 1 March 2023, as the joint venture parties have agreed to re-organise the transaction into two separate sale transactions given the recent Angolan oil acquisition. \nHighlights:\no IBM to purchase Corcel's 100% interest in Niugini Nickel Pty Ltd, direct holder of EL 1165 in Papua New Guinea and the sole license owner of the Wowo Gap nickel-cobalt project for up to US$2.8M, of which:\no US$500,000 to be paid at completion net of costs already incurred by IBM under the carried interest previously announced\no a further US$900,000 to be paid 24 months from completion\no a final US$1.4m payment payable as a profit share from the first $2.8M of production at the project\no Continues the disposal of the Company's historic mining assets as it continues its pivot to oil and gas \nCorcel Chief Executive Officer, Scott Kaintz commented: \"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.\"\nTransaction Summary\nThe Company has agreed to sell a 100% interest in Niugini Nickel Pty Ltd, holder of EL 1165 and the Wowo Gap nickel-cobalt project. Consideration for the transaction will consist of four main parts:\no US$500,000 payable upon completion to be netted off against historic operating costs paid by IBM on behalf of Corcel during the course of 2023\no US$900,000 payable to Corcel 24 months following completion\no US$1.4m payment structured as a profit share to be paid out of the first cumulative net profits of US$2.8M of the project's production\no A 5% ...