• The mining company from Australia, Lake Victoria Gold Ltd, is a year away from its first production.
  • MetalNRG plans placing of up to £4.5 million to provide for additional working capital for the enlarged group.


On 20 October, MetalNRG Plc (LON: MNRG) announced that it has entered into a bid implementation deal for buying Lake Victoria Gold Ltd (LVG) and acquiring 100 per cent of its shares in issue via a share swap transaction. The LVG Board has recommended that the takeover bid needed to be accepted by its investors that remained subjected to any better proposal that could emerge.


The takeover offer

At present, LVG has in excess of 50 shareholders, so MetalNRG would have to formally make the takeover bid. For the takeover offer and additional working capital for the enlarged group, MetalNRG has proposed to conduct a placing to raise up to £4.5 million. 

 MetalNRG's bid is to purchase 100 per cent of LVG's shares in issue through a share swap transaction. After the completion of the transaction, MetalNRG would own entire assets of LVG, including Tanzoz Minerals Ltd. LVG is valued slightly more than £6 million and its shareholders would get a total of 750,037,391 shares of MetalNRG at GBX 0.008 per share.


At present, the London-based natural resource investing and exploration company does not have enough headroom for issuing shares to complete the transaction. MetalNRG would seek shareholder’s authority for issuing the required shares. It would issue a new prospectus that is currently being prepared. Alongside, MetalNRG would seek both equity and non-dilutive project finance for funding. It planned to bring the asset into production within the timeframes mentioned.

After a successful bid, Seth Dickinson, CEO for LVG, would join the Board of MetalNRG. Dickinson would drive forward all MetalNRG's gold projects, including Goldridge in Arizona. Besides, he would bring a local management team in Tanzania that would continue to work on the LVG project. Apart from Dickinson, Bjorn Zikarsky, currently a Non-Executive Director with LVG is also likely to join MetalNRG Board.


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LVG is an Australian Public Company that was established in 2011. After its incorporation, it completed an all share transaction with Tanzoz Minerals Ltd (TML), a private company from Tanzania. Currently, a wholly owned subsidiary of LVG, TML has Gold Prospecting Licenses (PLs) in Tanzania. 


Having a mining license 538, (ML538), TML has a resource of approximately 300,000 oz, including a reserve of approximately 90,000 oz. A 2017 pre-feasibility study has confirmed that this has been adequate to begin economic mining operations at Imwelo in Tanzania.

LVG aimed to start mining and processing at a rate of around 12,000 oz on an annual basis. It is expected that it would take approximately a year from the transaction completion target for producing Dore Gold. LVG or its subsidiary company TML would continue the drilling activity at the ore zones of Imwelo for increasing the resource and reserve by utilizing the cash flow generated from the operations. For production, the project would need $5.8 million. With gold price at $1500 per oz, the project’s net present value (NPV) was of $23.5 million at 10 per cent discount rate, in addition to an internal rate of return (IRR) of 93 per cent. 

Acquisition of Sunswept Enterprises

In another acquisition deal, MetalNRG on 9 October stated that after completing the due diligence, BritNRG Limited, a subsidiary joint venture, has signed a deal for buying the entire issued share capital of Sunswept Enterprises Limited and its subsidiaries. The gross transaction cost for Sunswept's issued share capital was at £1,900,000.

BritNRG would become MetalNRG's special purpose vehicle and focus on energy opportunities. While Metal NRG would have a 50 per cent interest in BritNRG, the rest of the stake would be owned by international private investors. Completion is expected soon and remains subject to ‘no objection’ regarding the change of control of Sunswept from the UK Oil and Gas Authority.  

The subsidiaries of Sunswept have interest in the several UK onshore licenses. Besides three producing licenses, the portfolio of Sunswept has three exploration permits in Lincolnshire. With this purchase, BritNRG would be able to apply for modern seismic surveys and geophysical and advanced reservoir studies, leading to additional opportunities for development and appraisal.


In early September, MetalNRG came up with its results for the six months period ended 30 June 2020. 

MetalNRG said that it has evaluated various projects and made substantial progress in taking things ahead. 


Stock performance

MetalNRG is a natural resource investing company that seeks investments in strategic and precious metals. On 21 October at 1.39 PM, the company’s stock (LON: MNRG) was trading at GBX 0.98. The 52-week low high range was recorded as 0.23 and 1.30. With a market capitalisation of GBX 4.29 million, the stock provided a positive return on price, which was plus 104.35 per cent on a year-to-date (YTD) basis. The total volume of shares traded at the time of reporting was recorded at 19,165,800.


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