Corcel defers grid connection obligations at Burwell

The AIM-traded firm said discussions were underway with the Resource Mining Corporation (RMI) for settlement of its AUD 4.76m (£2.65m) debt position.

It also said the Mambare mining lease application process was continuing at its nickel-cobalt project, while planning for the Dempster vanadium project’s 2021 field season was also underway.

“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,” said chief executive officer Scott Kaintz.

“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.”

Kaintz said flexible energy storage and production remained a “very attractive” sector in the UK for investors, noting the recent successful Mast Energy Developments initial public offering 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.”

At 1130 BST, shares in Corcel were down 10.31% at 1.75p.