Corcel PLC, an Angolan focused exploration and production company, has received a revised offer from Integrated Battery Metals (IBM) to purchase its 41% interest in the Mambare nickel/cobalt project. The proposed transaction terms include a purchase price of up to US$4.1 million, with an initial payment of US$1.6 million due at completion of the sale. Additionally, there will be a further payment of US$1.4 million payable in cash or IBM shares, and a final payment of US$1.0 million after 24 months. The transaction also includes the sale of Corcel's gross smelter royalty for US$0.148 million.
Corcel's Executive Chairman, Antoine Karam, commented that the revised transaction offers an enhanced exit from the Mambare asset at a higher valuation than the original deal. He also highlighted the strategic focus on oil and gas opportunities and the near-term funding for operations in Angola. Karam recommended that all shareholders support the resolutions at the upcoming General Meeting to allow the proposal to be consummated.
To ensure proper capitalization for its operations in Angola, Corcel will receive an unsecured loan of US$1.6 million from IBM. The loan will be interest-free and repayable upon completion of the sale or in the event that Battery Metal's Australasia's pre-emption rights are not waived. If the loan is not repaid within 10 business days via pre-emption, it will attract an interest rate of 6%. If the loan is not repaid by the 2nd anniversary, IBM will be released from its payment obligations for the sale of the Wowo Gap project.
The disposal of Corcel's interest in Mambare constitutes a fundamental disposal and requires shareholder approval. A General Meeting will be convened, and after shareholder approval, BMA will be notified of the offer, starting a 45-day period for BMA to pre-empt the transaction. The original offer for the Mambare asset has been terminated, and Corcel has agreed to sell its 1% Gross Smelter Royalty over the project to IBM for US$0.148 million.
Further announcements regarding the General Meeting will be made in due course.