Proactive Investors - Resources group MetalNRG PLC (LON:MNRG) said it has concluded a strategic business review that will see it focus its growth and value creation efforts on the mining sector, specifically targeting gold and copper projects.
The decision, announced alongside its interim results, comes as the company anticipates a potential bull-market cycle in the metals and mining sector, driven by global macroeconomic factors, energy transition and technological trends.
It has identified several potential reverse takeover targets, aiming to accelerate value for shareholders.
MetalNRG said it plans to build a global natural resources business, promising industry-leading returns and sustainable dividends.
Investment strategies will target three types of projects: late-stage developments expected to be in production within 12 to 18 months, existing projects with substantial exploration and development potential, and blue-sky projects that could become significant mines in the future.
To spearhead this new direction, the company has appointed Chris Chadwick to the board as an executive director.
Chadwick, a seasoned mine operator, was previously the CEO of Gold One International and a director of Sibanye-Stillwater.
He will resign from his current role as CEO of African Gold Acquisition Corp to focus on MetalNRG.
In the update, investors were told the partnership with EQTEC and its investment in EQTEC Italia is now considered non-core.
As such, the company will be seeking "the most suitable exit from this investment".
The results for the six months to 30 June 2023 showed the company made a 'comprehensive loss' of just over £500,000. It exited the period with cash of £34,405 on the balance sheet.
On the issue of litigation, which has become something of a distraction for MetalNRG, the company told investors: "We believe that the most relevant cases have been concluded in our favour and that we can move on with developing the business, while still managing the outstanding legal processes in the UK High Court and the Employment Tribunal in Scotland."