REG - MetalNRG PLC - Update on Kyrgyzstan Uranium Project

MetalnrgAnnouncement

17/06/2024 07:15

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RNS Number : 5950S  MetalNRG PLC  17 June 2024

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17 June 2024

MetalNRG plc

(the "Company" or "MetalNRG")

Update on Kyrgyzstan Uranium Project

 

Kyrgyzstan Parliament removes prohibition on uranium mining

 

MetalNRG plc (LON:MNRG), the natural resources and energy investment company,
is pleased to announce that the Parliament of Kyrgyzstan has approved a bill
lifting the ban on prospecting, exploration, development and  mining uranium
and thorium in the Kyrgyz Republic.

MetalNRG has a significant interest in the Kamushanovskoye Uranium Deposit, a
uranium clean up project in the Kyrgyz Republic, with low CAPEX requirements
(the "Project"). The Project is currently owned by International Mining
Company Invest Inc ("IMC). MetalNRG holds a 9.9% stake in IMC, with an option
to increase that interest.  The value of MetalNRG's stake in IMC was fully
impaired in 2022, and is held at zero value, due to the prohibition on uranium
mining in the Kyrgyz Republic. This valuation will be reviewed in due course.

Project Highlights:

·      The Project is in the Kamushanov community, Sokuluksky District,
Chuy Province, 48km from Bishkek the capital city of the Kyrgyz Republic.

·      The State Reserve Committee of Kyrgyzstan had previously granted
an application for a mining licence in January 2019 (the "Mining Licence") for
3,371.1 tonnes uranium reserves (8.731 million lbs uranium 308) which had an
in-situ value of approximately US$253.1 million at uranium spot prices on that
date. The uranium price has since increased fourfold from approximately
US$22/lb to approximately US$86/lb.

·      The Project offers a potential exploration upside of an
additional 2.58 million lb of uranium from a partially explored zone (subject
to being brought into a compliant resource), plus as yet untested prospective
ground.

·     The Project was 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 ("CPR") carried out during the Company's due
diligence of the Project in 2019 and can be found on the Company's web
site www.metalnrg.com (http://www.metalnrg.com/)

·      Infrastructure around the Project includes road access, together
with electricity and water supplies.

·      There were three uranium refineries within 550km of the Project
before the ban was imposed, the closest being at Kara Balta, 60km away,
demonstrating that the region was familiar with development of uranium
production opportunities. There will be a need to establish the current state
of these refineries before decisions can be made on how and if to progress the
Project.

·      MetalNRG's internally estimated NPV of the Project is
approximately US$250m (based on current prices of US$91/lb for U3O8). The
figure is subject to revision after the reversal of the uranium ban comes into
force.

·      Based on the previously completed CPR and internal assessment,
the estimated initial costs to complete the build-up of the operations,
CAPEX/OPEX, is around US$11 million. Further validation of this figure will be
required to determine the best way forward.

·      MetalNRG's Board will be reviewing the Project to determine the
most appropriate way to progress this opportunity.

Rolf Gerritsen, Executive Director of MetalNRG, commented:

"The removal of the ban on exploiting uranium in the Kyrgyz Republic is very
welcome news. We will look carefully at how we can achieve the best value for
our shareholders from the Project, recognising there is a lot of work that
would need to be done if we are to develop the Project to a commercially
viable producing asset."

Christian Schaffalitzky, FIMMM, PGeo, CEng, a director of the Company, has
reviewed the update and consents to the inclusion of the exploration
information and commercial estimates in the form and context in which they
appear. He is a Competent Person for these purposes.

 

For further information, please contact:

 MetalNRG PLC:
 Rolf Gerritsen                                                     +44 (0) 207 796 9060
 Chris Chadwick                                                     +44 (0) 207 796 9060
 Hannam & Partners - Financial Adviser
 Andrew Chubb                                                       +44 (0) 207 907 8500
 Peterhouse Capital Limited - Joint Broker:
 Lucy Williams                               + 44 (0) 207 469 0930
 Duncan Vasey                                + 44 (0) 207 469 0930
 S I Capital Limited - Joint Broker:
 Nick Emerson                                +44 (0) 1483 413500
 IFC Advisory Limited - Financial PR and IR
 Tim Metcalfe                                +44 (0) 203 934 6630
 Florence Chandler                           +44 (0) 203 934 6630

 

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