REG - Mining, Minerals&Mtl - Georgina Energy Acquisition Update

Mining Minerals & MetalsAnnouncement

13/05/2024 07:00

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RNS Number : 1303O  Mining, Minerals & Metals PLC  13 May 2024

13 May 2024

 

Mining Minerals & Metals Plc

("MMM" or the "Company")

 

Georgina Energy Acquisition Update

 

Mining Minerals & Metals Plc ("MMM"), the investment vehicle established
to undertake an acquisition of one or more businesses ‎‎(either shares or
assets) that has operations involved in natural resource exploration,
announces an update on the proposed all share acquisition of Georgina Energy
Plc ("Georgina ‎ Energy" or "Georgina") ("Proposed Acquisition"), a
UK-domiciled company with highly prospective helium, hydrogen and natural gas
development assets in Australia.

 

The Company and Georgina have been busy with their advisory teams in recent
months and they are currently finalising the Proposed Acquisition, which is
expected to complete in late Q2 2024. The Company has appointed Oak Securities
(a trading name of Merlin Partners LLP) as joint broker, to work alongside its
existing broker and Financial Adviser, Tavira, in connection with the proposed
placing of shares in the Company as enlarged by the Proposed Acquisition
("Fundraise").

 

Key developments and highlights:

 

·      The Proposed Acquisition is expected to be an exciting new
entrant to the London Stock Exchange and the board of MMM believes that it
will provide exposure to a clear, low risk pathway to helium and hydrogen
production in a top-tier natural resources jurisdiction;

·      A finalised competent person's report over Georgina's key asset:
Hussar has been received confirming an in-situ value of over US$60 billion
from the defined net attributable 2U prospective resources of helium, hydrogen
and natural gas. Combined with current, non-independently verified estimates
from the Mount Winter project the Company will hold an overall in-situ value
in excess of US$100 billion;

·      The Company has received significant institutional interest from
preliminary investor meetings in connection with the Fundraise;

·      The Proposed Acquisition constitutes a reverse takeover, and
‎therefore requires ‎the publication of a prospectus for the admission of
the enlarged share capital of the Company to the Official List and the Main
Market of the London Stock exchange Plc ("Re-admission") which has been filed
with the FCA and the Company is awaiting its approval.

 

The Proposed Acquisition is conditional on i) entering into definitive legal
agreements; ii) completion of the Fundraise iii) approval by shareholders at a
General Meeting of the Company to be convened; iv) obtaining all necessary
approvals (if and where required); and v) Re-admission.

 

Strategic rationale for the Proposed Acquisition:

 

Georgina is a well redevelopment company which has adopted a low risk,
differentiated strategy and the board of MMM believes there is a clear and
realistic pathway to production with drilling expected to commence in Q4 2024.

 

Significant Gas Potential

 

The large-scale project is 3,951 Km² held over two project areas in Western
Australia, a proven region with significant gas potential. Georgina Energy has
evaluated the potential of the Hussar (EP 513) and Mt Winter (EP155) prospects
to contain the required elements to yield significant helium & hydrogen
accumulations. Both sites have previously been drilled and road access remains
useable. Hussar, the first project to be drilled, has a potential in-situ
value of US$55 billion of combined helium and hydrogen as well as US$5.24
billion in-situ value of natural gas. The area consists of 46 graticular
blocks (3,574 Km²) and was previously drilled to a depth of 2040m TD in 1982.
Hussar is considered by independent consultants to be one of the most
potentially lucrative resource basins in the Asia Pacific region due to its
significant helium, hydrogen, oil & natural gas potential. The Mt Winter-1
well was drilled in 1982 to a depth of 2,650m TD but did not penetrate the
subsalt Heavitree Formation hydrogen, helium & natural gas reservoir
target but reached TD in salt just above it. All 3 previously drilled wells
have penetrated the Heavitree and encountered high concentrations of helium
(up to 9%) and hydrogen (up to 11%). Georgina has an initial programme to
complete seismic and then re-enter the existing well to develop the gases.

 

Highly Experienced Management Team

 

The Georgina board is comprised of experienced professionals in the oil &
gas exploration space with technical capacity and an expert understanding of
development and sales. Anthony Hamilton (CEO of Georgina) has over 35 years'
extensive experience in mining, oil & gas and exploration and production.
 Mark Wallace (CFO of Georgina) has over 25 years' experience in the global
financial markets. John heugh will be appointed Technical Director of Georgina
on Re-admission and has over 50 years of experience and was the founding
Director and MD of Central Petroleum Ltd listed on the ASX. On Re-admission,
Roy Pitchford (currently Non-Executive Chairman of MMM plc) will remain with
the Company as Non-Executive Director.  He brings over 30 years' executive
and managerial expertise and during his career in the resource development
area.

 

Differentiated and Low Risk

 

Georgina adopts a low risk, differentiated strategy and is already well
advanced in its exploration activities in relation to its UK peer group as it
is essentially a well re-redevelopment company. There is proven gas flowing
from the original drilled wells, established infrastructure for the project as
well as a recognised supply chain. Both target sites have previously been
drilled and the road access remains usable. Georgina intends to supply from
the wellhead under off-take agreement to mitigate infrastructure costs. Given
the established infrastructure and reliable supply chain, the board and
management team are aiming for Georgina to become a leading global producer of
helium and hydrogen.

 

Right Time

 

Georgina gives investors a chance to benefit from supply and demand dynamics.
There is a global short supply of helium and significant increases in demand,
including space launch usage, has led to further price increases.

 

Roy Pitchford, Non-Executive Chairman of MMM, commented:

"This acquisition has huge potential to create a leading hydrogen and helium
producer that will compete on the global scene. Georgina has done an excellent
job advancing their highly prospective and low risk projects in Australia and
we now near the conclusion of the transaction at a highly opportune time in
the market.  We see huge global demand coming for hydrogen and already there
is a supply squeeze in helium making this an ever more attractive deal for
MMM.

I am pleased to note that we have had significant institutional interest from
preliminary investor meetings, and I look forward to updating shareholders
further in due course."

 

Enquiries

 

Georgina Energy

 Tony Hamilton  via Camarco
 Mark Wallace

Tavira Financial Ltd - Financial Adviser and Joint Broker

 Jonathan Evans     +44 (0)20 3833 3719 (tel:+442038333719)
 Oliver Stansfield

 

Oak Securities - Joint Broker

 Jerry Keen       +44 (0)203 973 3678 (tel:+442039733678)
 Henry Clarke
 Dillon Anadkat

 

Camarco - Financial PR

 Gordon Poole    georginaenergy@apcoworldwide.com (mailto:georginaenergy@apcoworldwide.com)
 Tilly Butcher

 Letaba Rimell

 

 

Notes to Editors

 

Georgina Energy aims to become a leading player in the global energy market
and is focused on establishing itself among the top producers of Helium and
Hydrogen worldwide. With a strategic approach and leveraging the experienced
management team's expertise, Georgina Energy aims to capitalize on
opportunities in these critical energy sectors.

 

The projects benefit from established infrastructure and a reliable supply
chain, offering significant resource potential through low-risk,
cost-effective drilling projects.

 

Georgina has two principal onshore interests held through its wholly owned
Australian subsidiary, Westmarket O&G.  The first, the Hussar Prospect is
located in the Officer Basin in Western Australia and Westmarket O&G holds
a 100% working interest in the exploration permit.  The second, the Mount
Winter Prospect, is located in the Amadeus Basin in the Northern Territory,
which Georgina has a right to earn an initial 75 per cent. interest in (with
the potential to reach 90 per cent.).

 

In line with market demand trends, Georgina Energy is well-positioned to
capitalize on the growing gap between supply and demand for hydrogen and
helium with the resource potential of Mt Winter and Hussar projects for their
potential accumulations.

 

 

For more information visit https://www.georginaenergy.com
(https://www.georginaenergy.com)

 

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