TIDMCRCL
RNS Number : 5338X
Corcel PLC
05 May 2021
Corcel PLC
("Corcel" or the "Company")
Operations Update
05 May 2021
Corcel Plc, ("Corcel" or "the Company"), the natural resource
exploration and development company with interests in battery
metals and flexible grid solutions, announces an update across its
portfolio.
Highlights:
o Burwell Energy Storage Project progressing; grid connection
obligations extended to December 2021
o Discussions underway with Resource Mining Corporation ("RMI")
for settlement of Corcel's AUD 4.76m debt position
o Mambare mining lease application process continues at
Company's nickel-cobalt project
o Planning for Dempster vanadium project 2021 field season
underway
Chief Executive Officer, Scott Kaintz commented: "I am happy to
report that the Company continues to make progress on all fronts,
with proposals for the commercialisation of the investment in RMI,
in particular, under active discussion.
At Burwell, the Company has successfully deferred its grid
connection obligations, and whilst we do not expect to require this
additional period, it gives the team more time to complete the
planning application process prior to reaching shovel ready status
and ultimately financial close. The Company is also exploring
options to "right size" the grid connection itself, focusing
initially on the 50MW battery storage project which brings
meaningful capital cost savings while boosting returns.
Flexible energy storage and production remains a very attractive
sector here in the UK for investors, and the Company notes the
recent successful Mast Energy Developments Plc (AIM:MED) IPO and
implied valuation read-across. The Company continues to focus on
this space and expects to expand its footprint in the sector in the
near-term."
Burwell Energy Storage Project
The Company continues to progress activities at the Burwell
energy storage project outside of Cambridge in the United Kingdom.
The relevant planning works continue apace with consultants working
to finalize the site layout and ensure the formal application has
the best possible likelihood of being approved with few
modifications or conditions being imposed.
The project has received confirmation from UKPN that the next
payment that relates to the grid connection has now been formally
deferred until December 2021, giving the Company more additional
time to complete the planning activities prior to the next
expenditure on the connection coming due. The Company does not
expect to require that additional time, however the flexibility is
welcomed.
The Company continues discussions with the landowner of the
property regarding the execution of a binding option to lease. The
Company has been informed that the landowner is currently managing
a land sale process and Corcel therefore expects the lease to be
signed with the new landlord following that land transaction
completing; which is expected imminently
The Company also has requested a formal variation of the
existing grid connection from the DNO that will provide it with the
ability to reduce the grid connection to 50MW of import and export
capacity and therefore focus on the 50MW Battery Storage project
initially. A modification of the grid connection of this nature
will significantly reduce the total capital cost of the project and
will further boost the economics of the battery storage project
were it to ultimately be accepted. The additional 50MW of Solar can
then be considered as a second phase to the Project.
Resource Mining Corporation
The Company announces that it is now formally in discussions
with RMI in Australia in respect of the AUD4.76m debt position in
RMI, which the Company currently owns. This debt obligation is due
for repayment by RMI in Q4 2021 and Q1 2022.
Mambare Nickel Cobalt Project
The joint venture partners continue to progress the mining lease
application despite delays associated with the global pandemic. As
part of this application, the partners are also answering specific
information requests from the MRA as well as progressing a
Memorandum of Agreement covering how royalties will be divided in
PNG at the state, province and local levels. The Joint Venture,
having completed CEPA's technical assessment 600 days ago, awaits
approval of the Environmental Permit during the course of the
year.
The previously announced preparations for a DSO operation, such
as social mapping, port access and stockpile planning, are also
designated areas of focus this year. The partners are advancing
river crossing selection for the two rivers to be crossed, with
bridge engineers preliminary visits scheduled this week. During
May, the Joint Venture will also be commencing further inspection
and documentation on the existing 37 bridges between the Mambare
project and the Oro port to upgrade the road and bridge survey
prepared in early 2019.
In March 2021, the JV formally submitted its license renewal
application for EL1390 to the PNG authorities and has further
lodged its bi-annual report through the period to Dec 2020.
Dempster Vanadium Project
The JV partners recently conducted a planning meeting to
determine plans for the Summer 2021 exploration campaign. The
results of the 2020 field season were considered very promising and
the consensus among the partners was that additional exploration
was warranted. The 2020 geochemical surveys helped define the
breadth and linear extent of the vanadium enrichment within a
section of the Canol Formation and delineated a target horizon for
more detailed exploration. Compilation and digitization of previous
surface soil geochemical results, although widely spaced, indicated
that the vanadium enrichment is present along the entire length of
the Canol within the property's boundaries. Overall, the
encouraging 2020 soil sampling results reiterate and reinforce the
vanadium results obtained from the core sampling of the 2007 drill
holes the JV partners inherited at the project.
Multiple options exist for taking the project forward and
include additional geological mapping, prospecting and soil and
rock geochemical surveys over the entirety of the project. A
potential second phase, which may be done in parallel or in lieu of
the geochemical work, would be to conduct a 2,000m drill campaign
over a previously mapped and easily accessible portion of the
terrain.
The Company will provide further updates on this workplan in due
course.
The technical and related information in this announcement that
relates to the Dempster Vanadium Project, has been reviewed by Mark
Fekete, PGeo. Mr. Fekete has designation as a professional
geologist in Quebec and British Columbia and is a qualified person
for the preparation of reports under the Canadian disclosure
standard NI 43-101. He has sufficient experience in the style of
mineralisation and type of deposit under consideration. He approves
the inclusion in this announcement of the technical information in
the form and context in which it occurs. Mr. Fekete is a principal
of Breakaway Exploration Management Inc.
For further information, please contact:
Scott Kaintz 020 7747 9960 CEO Corcel Plc
Roland Cornish/ Rosalind Hill Abrahams 020 7628 3396 NOMAD Beaumont Cornish Limited
Thomas Smith 020 7392 1432 Broker Monecor (London) Ltd (ETX
Capital)
Patrick d'Ancona 0207 390 0230 IR Vigo Consulting
This announcement contains inside information under Article 7 of
Regulation (EU) 596/2014 . as it forms part of UK Domestic Law by
virtue of the European Union (Withdrawal) Act 2018.
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END
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