Caerus Mineral Resources plc plans to sell its Cyprus copper assets to two of its shareholders, PM Ploutonic Metals Ltd and Indo-European Mining PR Ltd, and evolve into a battery metals company.
STRATEGY
Caerus has signed a binding heads of agreement with the two companies, signalling the end of its direct involvement in Cyprus.
The company said the move also reflected its broader strategy to seek “larger development opportunities in battery metals”, which was aligned to or derived from its partnership with EV Metals (EVM).
Chairman Christopher Lambert added that Caerus was in advanced discussions regarding “several development opportunities”.
PURCHASERS
Ploutonic and Indo currently hold 9.42% and 6.93% respectively of Caerus’s voting rights.
The beneficial owner of Ploutonic is Andrew Daniels, a previous non-executive director of Caerus, and the beneficial owner of Indo is Pierre Richard.
TRANSACTION
Caerus will sell the entire issued share capital of its companies New Cyprus Copper PA Ltd (NCC) and GC Gold Mines (Cyprus) Ltd in addition to inter-company loans due from them to Caerus.
The company will transfer the shares and loans to a special purpose vehicle (SPV) formed by the purchasers on or just after completion.
Ploutonic and Indo will pay US$528,001 cash in three instalments of $100,000 on signing a formal agreement; $1 to effect the transfer of the Cyprus companies; and $428,000 within 90 days of the second payment.
In the event of a JORC or NI 43-101 compliant mineral resource estimate of 7.75 million tonnes or more at a 0.5% copper equivalent at Troulli, the SPV will pay Caerus a further $432,000 cash.
MILESTONE
Mr Lambert added that the transaction followed an extensive review by the new management of Caerus’ business.
“[The sale] is an important milestone in Caerus’ evolution.
“The transaction secures funds for the company and removes legal exposure to BMG Resources Ltd and its disputed A$2m put option.”
The deal also follows improved corporate governance within Caerus including the return of 4.9 million company shares, the cancellation of 10.9m warrants and a one-off payment from former directors.