LONDON - Atlas (NYSE:ATCO) Metals Group PLC, formerly known as MetalNRG, has terminated its agreement to acquire Compagnie Minière de Oumejrane (CMO) from Managem S.A., a Moroccan mining firm. The deal, announced on October 17, was contingent on Atlas raising £15 million in new equity capital, which it failed to secure within the timeframe stipulated by the sale and purchase agreement (SPA).
The inability to meet the financing conditions has led Managem to cancel the SPA. Consequently, Orion Resource Partners' fund, OMF Fund IV SPV K LLC, has issued a default notice under the undrawn $25 million convertible loan note intended for funding the acquisition.
Atlas is exploring alternative strategies to complete the transaction, although there is no assurance of success. Further updates will be provided as the company evaluates its options.
This development follows Atlas's circular from November 11, which outlined the necessity of the capital raise for the acquisition's implementation. The company's efforts to meet these financial requirements were hampered by market conditions and feedback from prospective institutional investors.
The announcement, which contains inside information as per UK Market Abuse Regulation, was made public by Atlas's Director, Rolf Gerritsen. The termination of the SPA marks a significant shift in Atlas's strategy and its plans for expansion through the acquisition of CMO.
Investors and stakeholders are advised that the information is based on a press release statement and to look for forthcoming announcements for additional details on Atlas's next steps.
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