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
Oak
Securities - Joint Broker
Camarco - Financial PR
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