05 March 2021

Caerus Mineral Resources Plc / EPIC: CMRS / Market: LSE / Sector: Mining

(‘CMRS’ or the ‘Company’)

Acquisition and Intention to Float on the London Stock Exchange

Caerus Mineral Resources, a London based exploration and resource development company focused on developing mineral resources in Europe to supply the global “Clean Energy” drive, is pleased to announce the acquisition of New Cyprus Copper P.A. Ltd (“NCC”) (“Acquisition”) and its intention to admit its entire issued and to be issued ordinary share capital to the Standard Segment of the Official List of the Financial Conduct Authority and to trading on the Main Market for listed securities of the London Stock Exchange (“Admission”).

The NCC Acquisition provides Caerus with access to a suite of copper – gold exploration licences in the Republic of Cyprus.

The Company has completed a successful fund-raise (“Placing “) through Novum Securities Limited by means of a Placing of 21,000,000 new ordinary shares of 0.1p each in the capital of the Company (“Ordinary Shares”) (“Placing Shares”) at 10p per share to raise GBP2,100,000 (before expenses). In parallel, the Company has entered into two Subscription Agreements in relation to Subscriptions for an aggregate 1,500,000 new Ordinary Shares (“Subscription Shares”) at 10p per share to raise GBP 150,000 (“Subscription”).

The Placing and the Subscriptions are conditional upon Admission. It is expected that Admission will become effective and dealings in the enlarged issued ordinary share capital of the Company will commence on 19 March 2021.

The Prospectus will be made available shortly on the Company’s website: www.caerusmineralsresources.com, as well as on the National Storage Mechanism.

Company Highlights

  • High Quality Brownfield Exploration portfolio
    o Caerus is targeting the exploration and development of undervalued predominantly brownfield copper-gold opportunities to create a portfolio that can be commercially exploited
  • Additions to the portfolio
    o Three new licences have recently been acquired providing access to ‘greenfield exploration’ within the same host geology and structure proven conducive to mineralisation on adjacent licences held by the Company and hosting former producing copper mines.
  • Near-term cash generation opportunity
    o Strong near-term cash flow opportunities through a suite of brownfield exploration licences in Cyprus, providing optionality through access to remnant resources on prematurely closed former copper mines, extensions to known orebodies, new discoveries aided by modern exploration techniques not employed on the company’s licences for over 40 years together with possible reprocessing of dumps, stockpiles and tailings associated with 14 former mines all located within the Company’s licence portfolio.
  • Shareholder value-focused
    o Experienced board and management team, with a board composition, focused on streamlining G&A costing to ensure raised capital is used to develop existing and prospective assets.
  • Strategic positioning
    o Caerus is well-positioned within the copper – gold rich volcanogenic massive sulphide geology of Cyprus to develop a pipeline of projects to sustainably feed the “Clean Energy” transition.
  • Growth exposure to rapidly developing Clean Energy Economy
    o Copper is one of the few metals required in every type of Clean Energy technology from wind, solar, Electric Vehicles to Stationary Battery Storage.
    o 23 kg of copper are required by each combustion engine car, whereas a hybrid electric vehicle uses nearly 40 kg, and a plug-in hybrid electric vehicle 60 kg. Depending on the size of the battery, an electric bus can use between 224 kg and 369 kg of copper.
    o 550 million tonnes of copper metal will be required over the next 25 years to meet the targeted reduction in carbon footprint.

Martyn Churchouse, Chief Executive Officer of Caerus Mineral Resources, commented:

“We are pleased to announce our intention to list on the London Stock Exchange. Caerus will provide the market with access to the re-emergence of Cyprus as a key producer of copper and a contributor towards the growing Clean Energy-based Economy.

We will use the funds raised to generate near-term Mineral Resource Estimates and progress towards the economic development of our projects. As a board, Caerus has a strong track record of value creation and Caerus offers a platform to target opportunities by creating a portfolio with an emphasis on metals strongly aligned with the rapidly developing Clean Energy Economy.
We are excited for the next phase of the Company’s growth and development as we look to deliver value and growth for our shareholders”

Note to Editors

Caerus Mineral Resources plc was established to focus primarily on developing mineral resources in Europe in response to the transition to low-carbon technologies aligned with the global Clean Energy drive. The current focus is on copper-gold opportunities in Cyprus, a region with a long mining history and significant untapped value.

Caerus will commence exploration, targeting brownfield sites within licences that include former producing mines and therefore host rocks and geological structures conducive to mineralisation, together with additional greenfield exploration on recently acquired licences.

Whist the short-term objective is to consolidate the database and generate targets for further evaluation, the medium to long-term goal remains to define a Mineral Resource of between 20Mt and 30Mt at cut-off grades of 1.5% Cu and 1g/t Au. Caerus has acquired title over 12 exploration permits that cover 31.42km2 in the former prolific mining districts of Kalavasos, Kambia, Vrechia and Black Pine. All of the project areas within the NCC Portfolio are considered to be prospective for copper and/or gold (and nickel-cobalt in the case of Black Pine).

The Kalavasos Project will focus on a variety of target types:

  • Remnant Resources: Mines Department of Cyprus reports indicate that remnant resources may exist at a number of the former mine sites. The Company will undertake a detailed data review and digitisation programme culminating in a drill programme to delineate Mineral Resources.
  • Extensions to Mineralisation: This process will be aided by geophysical surveys and 3-D modelling which is expected to provide indications of strike- and dip extensions to the known orebodies.
  • New Targets: Exploration techniques have improved since the last detailed work took place at Kalavasos over 40 years ago. The systematic application of modern exploration tools provides a unique opportunity for the discovery of new mineralisation.
  • Dump Assessment and Reclamation: Mineral processing efficiencies and techniques, operating costs and metal prices are some of the inputs that have changed to influence the economics of reprocessing low-grade ore. The Company will re-evaluate dump material, to estimate tonnage and grade prior to economic assessment. The presence of a gold by-product associated with copper mineralisation potentially provides additional value to underpin copper.

Proposed exploration for the Vrechia Project includes:

  • Mine – Known copper-gold sulphide mineralisation will be converted to an NI 43-101 compliant Mineral Resource. Geophysical surveys will be conducted along strike from the former open pit over prospective host rocks and structures typically associated with VMS-type mineralisation targeting new orebodies.
  • Dump and Tailings – A systematic sampling and short hole drill programme will test both pyrite and tailings dumps for residual copper and gold mineralisation. Metallurgical test work in conjunction with a resource estimate (based on the drill results) will determine whether a preliminary economic assessment is warranted.

Proposed exploration for the Mathiatis Project includes:

  • Mine – Historic data review, digitisation, 3-D modelling, sampling and drilling will target footwall copper – gold stockwork-type mineralisation typically found beneath massive sulphide lenses such as that mined out at N. Mathiatis.
  • Dump Assessment and Reclamation – Dumps will be evaluated to establish their relative age and sequence of deposition to focus in on material that may host copper and or gold in economic quantities. Sampling and drilling of the dumps will take place in parallel with metallurgical test work to generate an initial resource estimate prior to commencing a Preliminary Economic Assessment (“PEA”).

For further information, please visit www.caerusmineralresources.com or contact:

Caerus Mineral Resources plc:

Martyn Churchouse,
Chief Executive Officer

Info@Caerusmineralresources.com
+44 (0)1249 783142

Novum Securities:

Corporate Broker
Jon Belliss

+44 (0) 20 7399 9425

Follow us on Twitter at @CaerusMineral

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.