Corcel Plc, ("Corcel" or "the Company"), the natural resource exploration and development company with interests in battery metals and flexible grid solutions, announces an update across its portfolio.
o Burwell Energy Storage Project progressing; grid connection obligations extended to December 2021
o Discussions underway with Resource Mining Corporation ("RMI") for settlement of Corcel's AUD 4.76m debt position
o Mambare mining lease application process continues at Company's nickel-cobalt project
o Planning for Dempster vanadium project 2021 field season underway
Chief Executive Officer, Scott Kaintz commented: "I am happy to report that the Company continues to make progress on all fronts, with proposals for the commercialisation of the investment in RMI, in particular, under active discussion.
At Burwell, the Company has successfully deferred its grid connection obligations, and whilst we do not expect to require this additional period, it gives the team more time to complete the planning application process prior to reaching shovel ready status and ultimately financial close. The Company is also exploring options to "right size" the grid connection itself, focusing initially on the 50MW battery storage project which brings meaningful capital cost savings while boosting returns.
Flexible energy storage and production remains a very attractive sector here in the UK for investors, and the Company notes the recent successful Mast Energy Developments Plc (AIM:MED) IPO and implied valuation read-across. The Company continues to focus on this space and expects to expand its footprint in the sector in the near-term."
Burwell Energy Storage Project
The Company continues to progress activities at the Burwell energy storage project outside of Cambridge in the United Kingdom. The relevant planning works continue apace with consultants working to finalize the site layout and ensure the formal application has the best possible likelihood of being approved with few modifications or conditions being imposed.
The project has received confirmation from UKPN that the next payment that relates to the grid connection has now been formally deferred until December 2021, giving the Company more additional time to complete the planning activities prior to the next expenditure on the connection coming due. The Company does not expect to require that additional time, however the flexibility is welcomed.
The Company continues discussions with the landowner of the property regarding the execution of a binding option to lease. The Company has been informed that the landowner is currently managing a land sale process and Corcel therefore expects the lease to be signed with the new landlord following that land transaction completing; which is expected imminently
The Company also has requested a formal variation of the existing grid connection from the DNO that will provide it with the ability to reduce the grid connection to 50MW of import and export capacity and therefore focus on the 50MW Battery Storage project initially. A modification of the grid connection of this nature will significantly reduce the total capital cost of the project and will further boost the economics of the battery storage project were it to ultimately be accepted. The additional 50MW of Solar can then be considered as a second phase to the Project.
Resource Mining Corporation
The Company announces that it is now formally in discussions with RMI in Australia in respect of the AUD4.76m debt position in RMI, which the Company currently owns. This debt obligation is due for repayment by RMI in Q4 2021 and Q1 2022.
Mambare Nickel Cobalt Project
The joint venture partners continue to progress the mining lease application despite delays associated with the global pandemic. As part of this application, the partners are also answering specific information requests from the MRA as well as progressing a Memorandum of Agreement covering how royalties will be divided in PNG at the state, province and local levels. The Joint Venture, having completed CEPA's technical assessment 600 days ago, awaits approval of the Environmental Permit during the course of the year.
The previously announced preparations for a DSO operation, such as social mapping, port access and stockpile planning, are also designated areas of focus this year. The partners are advancing river crossing selection for the two rivers to be crossed, with bridge engineers preliminary visits scheduled this week. During May, the Joint Venture will also be commencing further inspection and documentation on the existing 37 bridges between the Mambare project and the Oro port to upgrade the road and bridge survey prepared in early 2019.
In March 2021, the JV formally submitted its license renewal application for EL1390 to the PNG authorities and has further lodged its bi-annual report through the period to Dec 2020.
Dempster Vanadium Project
The JV partners recently conducted a planning meeting to determine plans for the Summer 2021 exploration campaign. The results of the 2020 field season were considered very promising and the consensus among the partners was that additional exploration was warranted. The 2020 geochemical surveys helped define the breadth and linear extent of the vanadium enrichment within a section of the Canol Formation and delineated a target horizon for more detailed exploration. Compilation and digitization of previous surface soil geochemical results, although widely spaced, indicated that the vanadium enrichment is present along the entire length of the Canol within the property's boundaries. Overall, the encouraging 2020 soil sampling results reiterate and reinforce the vanadium results obtained from the core sampling of the 2007 drill holes the JV partners inherited at the project.
Multiple options exist for taking the project forward and include additional geological mapping, prospecting and soil and rock geochemical surveys over the entirety of the project. A potential second phase, which may be done in parallel or in lieu of the geochemical work, would be to conduct a 2,000m drill campaign over a previously mapped and easily accessible portion of the terrain.
The Company will provide further updates on this workplan in due course.
The technical and related information in this announcement that relates to the Dempster Vanadium Project, has been reviewed by Mark Fekete, PGeo. Mr. Fekete has designation as a professional geologist in Quebec and British Columbia and is a qualified person for the preparation of reports under the Canadian disclosure standard NI 43-101. He has sufficient experience in the style of mineralisation and type of deposit under consideration. He approves the inclusion in this announcement of the technical information in the form and context in which it occurs. Mr. Fekete is a principal of Breakaway Exploration Management Inc.