AIM quoted African Battery Metals plc, the African focused exploration company developing projects in strategic battery metals, announces that, following the acquisition of two new nickel and cobalt projects in Cameroon and Cote d'Ivoire and a review of its assets, the Board has decided to discontinue its activities in Sierra Leone. This will allow the Company to focus all its resources and energies on advancing its portfolio and identifying further opportunities that fit within its investment criteria, to build value and deliver a leading battery metals-focussed resource company.
The Company believes that there are attractive long-term market fundamentals for battery metals. The strategy of rapidly building the Company both organically and through acquisition, that was implemented in January 2018, has been endorsed by the new shareholders led by highly successful international resource entrepreneurs, including Stephen Dattels and Ian Stalker. This and the fact that the exploration licence covering the 153 sq. km Ferensola Project, in Northern Sierra Leone, is due for renewal, has prompted the decision to end all activity in Sierra Leone. Accordingly, it is expected that a local liquidator will be appointed to manage the process and ensure a timely and satisfactory exit. The impact of the exit will be reported on in the next financial statement relevant to the period.
The Company now holds four prospecting licences in Cameroon close to one of the largest undeveloped cobalt resources in the world and two prospecting licence applications, as well as the irrevocable right to earn in to up to 70% of the 380 sq km Lizetta II cobalt, chrome and nickel project in Cote d'Ivoire. These two projects complement the licences in the Democratic Republic of Congo which are prospective for cobalt. ABM is also actively evaluating additional projects which the Board believes have potential to significantly advance the Company's stated strategy.
ABM CEO, Roger Murphy, said, "As our strategy states, we are focussed on battery metals. With the acquisition of two highly prospective nickel and cobalt assets which complement our existing DRC cobalt projects, and the Sierra Leone licences being up for renewal and extensive consultation with our stakeholders, we have elected not to continue with activities in Sierra Leone. We believe that in order to maximise shareholder value we need to focus resources on our core strategy. We have a platform from which to grow, both through the development of our current portfolio and by securing additional highly value accretive acquisitions and in the process deliver a leading battery metals-focussed resource company."
30 August 2018