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DJ MetalNRG Plc Uranium Option Update & Granting Mining Licence

 
TIDMMNRG 
 
THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO 
CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE EU MARKET ABUSE 
REGULATION (596/2014). UPON PUBLICATION OF THE ANNOUNCEMENT VIA A REGULATORY 
INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN. 
 
24 January 2019 
 
                                 MetalNRG plc 
 
                         (The "Company" or "MetalNRG") 
 
             UPDATE ON OPTION TO ACQUIRE ADVANCED URANIUM PROJECT 
                                       & 
                          GRANTING OF MINING LICENSE 
 
MetalNRG plc (NEX:MNRG), the natural resource investing company quoted on the 
NEX Exchange Growth Market in London is pleased to follow up on its previous 
announcement of 16 August 2018 (the "August 2018 Announcement") concerning its 
option to acquire an interest in the Kamushanovskoye Uranium deposit in 
Kyrgyzstan (the "Uranium Project"). 
 
MetalNRG today announces that the State Reserve Committee of Kyrgyzstan has 
granted the application for a mining license dated 22 January 2019 (the "Mining 
License") for 3,371.1 tonnes U reserves (8.731 million lbs U308) which has an 
in-situ value of approximately US$253.1 million at current uranium spot prices. 
 
Uranium Project Highlights: 
 
  * The Uranium Project is in the Kamushanov community, Sokuluksky District, 
    Chuy Province, 48km from Bishkek the capital city of the Kyrgyz Republic; 
 
  * The Uranium Project held an exploration license 2276 MP, which covers an 
    area of 4,078 hectares (40.78 km2) which will now be converted into the 
    Mining License granted; 
 
  * Additionally, the Uranium Project offers a potential exploration upside of 
    an additional 2.58Mlb of uranium from a partially explored zone (to be 
    brought into Compliant Resource) plus as yet untested prospective ground; 
 
  * The Uranium Project is intended to be developed on an In-Situ Recovery 
    ("ISR") basis providing for lower initial capital outlay and operating cost 
    of production. The pilot using this technique was completed and reported on 
    in the Competent Persons Report carried out during the Company's due 
    diligence of the Uranium Project and can be found on our web site 
    www.metalnrg.com 
 
  * Infrastructure around the Uranium Project includes 12-month road access, 
    together with electricity and water supplies; 
 
  * There are 3 uranium refineries within 550km of the Uranium Project, the 
    closest being at Kara Balta, 60km away, demonstrating that the region is 
    familiar with development of uranium production opportunities; 
 
  * The Uranium Project is currently owned 94.7%% by International Mining 
    Company Invest Inc ("IMC") incorporated and registered under the laws of 
    Nevada whose registered office is at 111 La Costa Court, Holmdel, NJ 07733, 
    USA.  The remaining  interest in the Uranium Project is held by MetalNRG 
    through its 5.3% stake in IMC; 
 
  * The Option (as defined in the August 2018 Announcement) provides for the 
    formation of a new holding company ("Newco") into which the project vendor 
    will transfer the Uranium Project (including the Mining License) in full 
    and MetalNRG will inject the agreed acquisition funds, ensuring that any 
    acquisition consideration is spent on project development rather than 
    vendor compensation; and 
 
  * To date, MetalNRG has supported IMC financially in relation to the Mining 
    License application process. Once Newco is set up and funded, MetalNRG will 
    own at least 51% of Newco (and, indirectly, the Uranium Project). MetalNRG 
    intends to pay a further US$45,000 in the coming weeks. To attain 51% the 
    Company will fund a further US$813,500. 
 
Rolf Gerritsen, Chief Executive Officer of MetalNRG commented: "Uranium is a 
key commodity and market dynamics make it an extremely interesting time for 
uranium. Our project is moving towards production and we are all extremely 
pleased with the progress. The financials around the project make it an 
outstanding opportunity and we look forward to the ongoing working relationship 
with IMC who are doing a great job." 
 
The Option Agreement: 
 
As described in the August 2018 Announcement, MetalNRG paid a fee of US$50,000 
to enter into an option agreement with IMC (the "Option Agreement") and 
complete due diligence on the Uranium  Project. MetalNRG has decided to pursue 
the joint venture and the initial transaction completion deadline of 28 
December 2018 has been extended. 
 
On 5 December 2018, MetalNRG entered into an agreement with IMC amending the 
Option Agreement (the "Amended Option Agreement") to restructure the cash 
payments paid by MetalNRG in order to progress the application of the Mining 
License. 
 
Under the Amended Option Agreement, it was acknowledged that MetalNRG had, as 
at the date of the Amended Option Agreement, made a payment of US$100,000 to 
IMC, representing 5% of the equity in the capital of Newco. It was agreed that 
each additional payment of US$50,000 made by MetalNRG to IMC would represent an 
additional 2.5 per cent of the equity in the capital of Newco.  To date an 
additional US$7,500 has been paid to IMC, posted amended agreement date, 
bringing the Company's position to 5.3%, additional payments will be made to 
secure the mining license. 
 
The person who arranged for the release of this announcement on behalf of the 
Company was Rolf Gerritsen, Chief Executive Officer. 
 
The technical information contained in this announcement has been read and 
approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, FGS), who is a qualified 
geologist and who acts as Competent Person. Mr O'Reilly is a Principal 
consultant working for Mining Analyst Consulting Ltd which has been retained by 
MetalNRG PLC to provide technical support. 
 
The Directors of the Company accept responsibility for the contents of this 
announcement. 
 
Contact details: 
 
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

January 24, 2019 02:00 ET (07:00 GMT)