Corcel PLC

("Corcel" or the "Company")

Placing and Appointment of Broker

-  Total Voting Rights (TVR)

26 October 2020

Corcel Plc, ("Corcel" or "the Company"), the natural resource exploration and development company with interests in battery metals and flexible grid solutions, announces completion of  a £750,000 placing and the appointment of a sole broker. 

Highlights:

·      £750,000 (gross) raised at a price of £0.01 per share (a 13% discount to the 22 Oct closing price of £0.115)

·      Funding to be utilized to exercise the option to purchase the remaining debt in RMI ("Resource Mining Corporation") at a 65% discount and in pursuit of additional opportunities in the battery metals space

·      New broker Monecor (London) Ltd appointed

Scott Kaintz, Chief Executive Officer, commented:

"We are delighted to have secured the funding to be able to finalise our discounted debt acquisition (by way of a mixture of cash and shares) from the Chinese Sinom Group, who would then become our largest cornerstone investor with approximately 12.7% of our enlarged share capital and associated lock in and relationship agreement. Exercising the option clears the path for discussions with RMI around the Wo Wo Gap asset.

After a focused period of restructuring, rebranding and clean up and despite the highly challenging external environment, Corcel is well-positioned and looking forward to updating shareholders on the Burwell energy project and the Dempster Vanadium results in due course."

Fundraising:

Regency has through its broker raised £750,000 (gross) by way of a placing with private investors of 75,000,000 new ordinary shares at a price of £0.01 per share, a 13% discount to the 22 Oct closing price (the "Placing").  A total of 37,500,000 three-year warrants have been issued to investors at an exercise price of £0.016 per share, a 39% premium to the closing price of 22 October 2020.

The Company has also issued 3,000,000 shares to service providers associated with the recent rebranding and website redevelopment efforts. 

Use of Proceeds:

The primary use of proceeds of the fundraising will be the execution of the option (as described below) with Sinom Hong Kong Limited ("Sinom") over AUD 3.05m of debt in Resource Mining Corporation Pty Ltd ("RMI"), first announced on 7 April 2020.  The Company intends to give notice of execution to Sinom immediately, and will update the market further in due course. 

Execution of the option entails the payment of AUD 640,000 in cash (£349,500) and the issuance of 23,711,018 new ordinary shares to Base Asia Pacific Limited, a Sinom subsidiary, in Corcel.  This represents an approximate 65% discount from the face value of the debt.  RMI is the 100% owner of the Wo Wo Gap nickel/cobalt project located 250km from the Company's existing Mambare project. 

The Company also expects to utilise some of the proceeds to assist the Company with originating and negotiating pre-identified further acquisitions in the battery metals space which are designed to broaden the Company's current exposure to all of the key battery metals going forward.  The Company will provide further updates on these discussions as appropriate.     

Broker Appointment:

The Company announces that Monecor (London) Ltd (trading as ETX Capital) has been appointed Sole Broker to the Company subject to a three-month transition period. 

Admission to Trading on AIM and Total Voting Rights:

Application is being made for 78,000,000 new ordinary shares, which when issued will rank pari passu with the existing ordinary shares in issue, to be admitted to trading on AIM, which is expected to be on or around 30 October 2020 ("Admission").

Following the issue of the new ordinary shares the issued share capital of the Company will consist of 267,910,596 ordinary shares of £0.0001 each with voting rights. No ordinary shares are held in Treasury.

As from Admission, the above figure of 267,910,596 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Disclosure and Transparency Rules.

For further information, please contact:

Scott Kaintz 020 7747 9960                                                   CEO Corcel Plc

Roland Cornish/ Rosalind Hill Abrahams 020 7628 3396   NOMAD Beaumont Cornish Limited

Thomas Smith 020 7392 1432                                                Broker Monecor (London) Ltd (ETX Capital)

Simon Woods 0207 3900 230                                                IR Vigo Communications               

This announcement contains inside information under Article 7 of Regulation (EU) 596/2014.

For further Information

WoWo Gap Nickel-Cobalt Project (Information as previously announced):

ASX listed RMI has a 100% interest in the WoWo Gap nickel-cobalt project, located 200km from the Papua New Guinea Capital of Port Moresby and some 150km southeast of the Company's Mambare asset. The Company holds the project through one tenement in PNG, EL 1165, currently under reapplication for a further 2-year period.

According to RMI's announcements made on the ASX and reflected on their website, the most recent 2010-11 drilling programme identified a JORC 2004 resource later including an Indicated and Inferred Resource Estimate of 125m tonnes at 1.06% nickel and 0.07% cobalt.  Exploration at the project dates back to the 1950s and has consisted of multiple drilling programmes, including diamond drilling, wacker holes and ground penetrating radar activities.   

An independent valuation ("Valuation") of the WoWo Gap project was conducted in 2009 and valued the project at AUD 168m.