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MetalNRG beginning to build a broad portfolio of commodity assets

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What it does

Metal NRG PLC’s (LON:MNRG) main focus is on its Gold Ridge Project in Arizona, acquired in November 2018, which encompasses three previously-producing gold mines known as Gold Prince, Gold Ridge and Dives mines, which are over a 1.8km strike within prospective 5km long vein swarm.

The three mines contain high-grade gold bearing quartz-sulphide veins, with historical production at the Gold Prince mine of 22,000 oz through to 1996.

The explorer is hoping to monetise the waste dumps and pillars left behind by previous operators, so that it can then go on to develop the significant exploration potential in the area.

MetalNRG also has an 8.5% stake in the Kamushanovskoye uranium deposit in Kyrgyzstan, which is currently on hold pending government legislation on uranium mining in the country which it proposed to ban in March.

The company has completed due diligence the potential acquisition of an oil and gas concession in Romania. The terms of the acquisition are under review, following the sharp fall in the oil price in the wake of the coronavirus crisis. 

MetalNRG believes the opportunity in Romania is significant

 

Recent developments

MetalNRG completed on its oil and gas transaction in December 2020, by acquiring, through special purpose vehicle BritNRG 100% of Sunswept Enterprises Limited and related assets.

Following completion of the acquisition and at current modest production levels, Sunswept is expected to be net cashflow positive at Brent prices sub $40/bbl, which is significantly below the current Brent price. A reduction of the breakeven oil price reference is expected as production levels are restored by bringing the Whisby #6 Well back on stream (by a wax removal workover) possibly within Q1/2021. Further reductions and additional cash generation is expected with the near-term development in both the Whisby and Newton on Trent assets. The relevant appraisals are nearing finalisation and BritNRG intends to present detailed plans to the OGA in the shortest possible timeframes.

The initial investment made by MetalNRG in BritNRG will be via a convertible loan note for a total amount of £450,000, payable in 3 tranches and which upon redemption will convert into 50% of the total BritNRG equity.  

Meanwhie, the company will continue to seek additional projects that meet its set investment criteria. The intention is specifically to seek opportunities that will deliver early positive cash flows .

Progress is continuing in regard to the acquisition of the Imweru gold project in Tanzania. 

What the boss says: Rolf Gerritsen, chief executive

“I am extremely pleased with the outcome and would like to thank Pierpaolo Rocco for his hard work in leading the transaction to a successful conclusion and I welcome the opportunity to work with the private investors who are our partners in this venture. Now that we have operational control of the assets the real work can commence and both Pierpaolo and I look forward to updating the market on BritNRG’s progress over the next few months as we develop the potential upside of the assets.”

 

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