The company said it’s portfolio would be diversified and strengthened through the proposed acquisition.
African Battery Metals (LSE:ABM) has announced that it has conditionally agreed to make two separate acquisitions, being the entire issued share capital of each of Cobalt Blue Holdings (FWE:CBH) and Regent Resources Interests (RRIC), which hold highly prospective cobalt-nickel exploration assets in Cameroon and Cote d’Ivoire respectively in two all-share deals.
- Portfolio diversified and strengthened through proposed acquisition of two highly synergistic and prospective cobalt-nickel assets:
- CBH – holds four prospecting licences in Cameroon close to one of the largest undeveloped cobalt reserves in the world and two prospecting licence applications
- RRIC – has the irrevocable right earn in to up to 70 percent of the 380 sq km Lizetta II cobalt, chrome and nickel project in Cote d’Ivoire
- Transaction diversifies the geo-political and commodity exposure within the battery metals space providing additional re-rating potential
- Attractive long-term market fundamentals for technology metals underpin ABM’s development strategy of rapidly building the company both organically and through acquisition
- Conditional placing to raise £200,000 to support portfolio development and execute rapid growth strategy
- Two non-executive directors to be appointed to the board, one of whom is expected to be nominated by Regent Resources, the seller of RRIC
- Proposed capital reorganization to reduce the number of ordinary shares in issue by a factor of 100 to attract new institutional investors and increase market liquidity by reducing volatility
CEO of ABM Roger Murphy said:
“We are delighted to announce these proposed acquisitions, which are intended to fast track our strategy to become a significant explorer, developer and ultimately producer of battery metals. The proposed acquisitions of two highly prospective nickel and cobalt assets in new jurisdictions complement our existing DRC cobalt projects and give us what the ABM board believes to be an extremely exciting portfolio.”