Further information will be released to the market in due course in respect of the Option agreement process and the technical elements of the Project.
Rolf Gerritsen, Chief Executive Officer of MetalNRG Plc commented: "Uranium is a key commodity and the market dynamics make it an extremely interesting time for uranium especially for those companies with established resources and near development opportunities. Both apply in respect of the Project covered by the Option Agreement announced today.
A number of large and well known mining companies operate in The Kyrgyz Republic and the laws passed in 2003 to protect investors offer a 10 year protection against adverse changes in investment, tax and customs laws. This protects against nationalisation and expropriation offers and free access to international arbitration. This also ensures repatriation of profits with no restrictions on converting or transferring of funds. All these conditions are extremely encouraging and positive from the Company’s perspective.
We are delighted to have accessed this opportunity, introduced to us by Christian Schaffilitzky, our MetalNRG Non-executive director who has been working with the vendor and operators of this project for some time.
Should we proceed with the acquisition post due diligence, the Project offers diversification by commodity and geography, and would bring MetalNRG into the uranium space at a highly interesting time for energy generation and the uranium sector at large."
The Option agreement:
MNRG have paid US$50,000 fee to enter the option agreement and complete due diligence on the project. If MNRG decide not to pursue the joint venture before the 28th of December 2018 then the US$50,000 paid in July 2018 converts into equity equivalent to 2.5% of the Newco. The option agreement calls for a joint venture 51% -49% in favour of MNRG to be established and set up via a Newco.
During the next 90 days MNRG shall undertake all required corporate, geological and technical diligence and review all data and work with IMC to agree the terms of a shareholders agreement with respect to the investment in Newco.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. Rolf Gerritsen, Chief Executive Officer of MetalNRG, arranged for the release of this announcement. The Directors of the Company accept responsibility for the contents of this announcement.
The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), who is a qualified geologist who acts as Competent Person. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by MetalNRG PLC to provide technical support.
The Directors of the Company accept responsibility for the contents of this announcement.
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