Corcel plc has received a revised conditional offer of $4.1 million for its 41% interest in the Mambare nickel-cobalt project in Papua New Guinea.
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Part of the payment from Integrated Battery Metals (IBM) can be either in cash or IBM shares at Corcel’s discretion.
In March 2023, Corcel restructured its PNG assets by signing a 50-50 joint venture with Integrated Energy Metals (IEM) to create the new carried vehicle IBM, intended for listing.
Corcel’s other 100% owned nickel-cobalt project Wowo Gap has already been sold to IBM for $2.8m.
The agreement reflects the company’s shift towards oil and gas and provides funds for its operations onshore Kwanza basin.
Executive chairman Antoine Karam said the company recommended that its shareholders support IBM’s revised offer.
“This proposed revised transaction offers a new and enhanced exit of the Mambare asset, at a significantly higher valuation than the original deal, while still providing on-going exposure to the underlying nickel asset in the form of a potential interest in IBM.
“More broadly, this agreement demonstrates our clear strategic focus on our oil and gas opportunities as well as providing key near term funding for the company’s operations in Angola.
“We look forward to results from the initial well there, while allowing the pre-emption process relating to the Mambare exit adequate time to conclude.”