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DJ MetalNRG Plc Farm-in Agreement update on Uranium Project

 
TIDMMNRG 
 
THE INFORMATION COMMUNICATED IN THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION 
FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 
AND UPON PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, 
THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN. 
 
3 May 2019 
 
                                 MetalNRG plc 
 
                         (the "Company" or "MetalNRG") 
 
                  Farm-in Agreement update on Uranium Project 
 
MetalNRG plc (NEX:MNRG) today announces that it has suspended the terms of the 
farm-in agreement with IMC (the "Farm-in Agreement"), announced on 27 March 
2019 (the "March Announcement") in relation to the Kamushanovskoye uranium 
deposit in Kyrgyzstan with a side letter dated 3 May 2019 (the "Side Letter"). 
 
Capitalised terms used but not defined herein shall have the meanings given to 
such terms in the March Announcement. 
 
On 2 May 2019, the parliament of the Kyrgyz Republic voted to ban all uranium 
exploration and mining in Kyrgyzstan indefinitely (the "Uranium Ban"). The 
government of Kyrgyzstan has been instructed to draft legislation to put the 
Uranium Ban into effect.  Pursuant to the Side Letter, the parties agree to 
suspend the Farm-In Agreement and all obligations of MetalNRG and IMC 
thereunder for the duration of the Uranium Ban. 
 
Under the Side Letter, MetalNRG and IMC agree that: 
 
  * IMC will waive the obligation of MetalNRG under the Farm-In Agreement to 
    transfer to IMC the Initial Payment of $400,000, payable upon MetalNRG's 
    proposed Admission to the Official List. 
 
  * From the date hereof, and throughout the duration of the Uranium Ban, IMC 
    will waive the obligation of MetalNRG under the Farm-In Agreement to make 
    the Tranche Payments on each of the Agreed Dates. 
 
  * From the date hereof, and throughout the duration of the Uranium Ban, the 
    Right of First Refusal (as defined in the Farm-In Agreement) shall continue 
    to apply in favour of MetalNRG. 
 
  * If the Uranium Ban continues for a period of 12 months from the date 
    hereof, MetalNRG shall have the right to terminate the Farm-In Agreement in 
    its entirety by written notice to IMC and MetalNRG shall not be liable for 
    any unpaid payments thereunder. 
 
  * If, within 12 months of the date hereof, either (i) the Uranium Ban ceases 
    to be in force or (ii) the government of the Kyrgyz Republic allows IMC to 
    progress work under its existing mining license for the sole purpose of 
    processing waste (an exemption under the Uranium Ban), MetalNRG may, in its 
    sole discretion, elect to re-enter the Farm-In Agreement, subject to the 
    adjustment, if necessary, of the Agreed Dates in relation to the Tranche 
    Payments and valuation of the Uranium Project. 
 
    IMC has continually held  that its activities at the Uranium Project of 
    'cleaning' the peat and contained groundwater, which carries high levels of 
    uranium (such uranium often contaminating the local water supplies), amount 
    to those of processing waste. 
 
    IMC holds a mining licence with concomitant rights. The license was 
    officially granted by the government of Kyrgyzstan in April 2019. 
    MetalNRG's current economic interest in the Uranium Project, as a result of 
    its total investment to date of US$170,650, is 8.5% 
 
    Rolf Gerritsen CEO of MetalNRG said "The decision announced by the 
    government of the Republic of Kyrgyzstan is extremely disappointing, 
    especially so after recent reassurances.. On a positive note, we have been 
    able to eliminate our financial exposure to the Farm-In Agreement and will 
    be talking to investors to get their input over the next few days." 
 
    Rolf Gerritsen, CEO of MetalNRG, arranged for the release of this 
    announcement. 
 
    For further information, please contact: 
 
MetalNRG PLC 
Rolf Gerritsen (Chief Executive        +44 (0) 20 7796 9060 
Officer) 
 
NEX Exchange Corporate Adviser 
PETERHOUSE CAPITAL LIMITED 
Guy Miller/Mark Anwyl                  +44 (0) 20 7469 0930 
 
Corporate Broker 
SI CAPITAL 
Nick Emerson                           +44 (0) 1483 413500 
 
 
 
END 
 

(END) Dow Jones Newswires

May 03, 2019 08:25 ET (12:25 GMT)