Corcel plc has sold 100% of its Wowo Gap nickel-cobalt asset and will dispute the buyout of its 41% share in the Mambare nickel-cobalt project, both in Papua New Guinea.
MAMBARE
In March, Corcel restructured its PNG assets by signing a 50-50 joint venture (JV) deal with Integrated Energy Metals (IEM) to create a new carried vehicle Integrated Battery Metals (IBM), intended for listing.
The deal was conditional on Corcel’s partner Battery Metals Pty Ltd (BMA) in Mambare waiving pre-emption rights during a 45-day review period.
In April, BMA said it intended to exercise its pre-emption rights to buy out Corcel’s 41% interest in the Mambare, leading to Corcel’s plans for a formal dispute.
WOWO GAP
The dispute also sees Corcel split the two projects in a new agreement to replace March’s JV deal, creating a separate sale of Wowo Gap to IBM.
The new deal of two separate transactions follows Corcel’s recent oil acquisition in the Kwanza Basin, Angola.
IBM will pay Corcel $500,000 for Wowo Gap on completion net of costs already incurred by IBM under the carried interest, and a further $900,000 after 24 months of completion.
A final $1.4m is payable as a profit share from the first $2.8 million of production at Wowo Gap.
A 5% commission payable to Corcel for any investment or farm-in partners introduced by Corcel for a period six months after completion.
Chief executive officer Scott Kaintz said: “Building on our recent agreements with IBM, who have been effectively operating Wowo Gap since January, this agreement splits the sale of Wowo Gap from that of Mambare and allows a key part of the original transaction to proceed independently from the disputed pre-emption on Mambare.”