Corcel joint venture refused mining lease in Papua New Guinea
Corcel
0.22p
13:59 05/11/24
Shares in oil, gas and battery metals small cap Corcel tanked on Wednesday after the company announced that the Papua New Guinea government refused to grant a direct shipping ore mining lease for its part-owned Mambare nickel-cobalt project.
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Corcel said that its the Ministry of Mining had notified the joint venture that it was currently not prepared to grant the lease and that it has 30 days in which to appeal the decision. The joint venture has been working on the application of the licence since March 2022.
"The company has not been informed by [operator] BMA nor the authorities in PNG of any subsequent developments on these matters following this period of appeal," Corcel said.
Separately, the company said it was pushing forward with the sale of its 41% interest in Mambare after its partner in the project, Battery Metals Australasia, failed to exercise its pre-emption rights following an offer from International Battery Metals last October.
As such, Corcel and International Battery Metals have been legally advised to move forward with completion of the sale.
The stock was down 15% at 0.17p by 1009 BST.