M3 Mining (ASX:M3M) making strong progress with its plan to secure an advanced energy asset in the Middle East North Africa (MENA) region.
“While our Australian geologists continue to work on the significantly improved copper potential at Victoria Bore, M3 Mining’s energy team has recently met with key government and administrative officials in its bid to secure an advanced energy project in the MENA region,” Executive Director, Simon Eley, said.
“Following these meetings, our team has been granted access to the project’s database and, as a result, we are refining both our development and exploration plans subject to successfully securing the project.
“The company is also looking to add technical energy credentials to the board as we engage with off-take groups and commercial banks as well as corporate finance firms.”
The World Bank Group and the African Development Bank recently announced an initiative aimed at providing at least 300 million people in Africa with access to electricity by 2030 through a combination of renewables and existing distribution grids. “This initiative highlights the need for reliable and affordable energy in developing countries in order to encourage economic growth and create employment opportunities1. The company is well placed to be a part of this initiative and once the project is secured, looks forward to presenting the unique opportunity for shareholders,” Mr Eley said.
Acquisition update
As announced in May this year, the company has been progressing its efforts to secure an energy project which meets the following criteria:
- Resources (at varying levels of confidence) and potentially reserves
- Ready access to infrastructure for transmission and/or transport of energy captured or produced
- Early production opportunities
The onshore energy project currently under consideration has producing fields on its northwest, east and southern borders with pipelines running the length of the permit all of which have excess capacity.
Based on a preliminary review of the information provided, the project has had 20 wells drilled (not including sidetracks) with numerous hydrocarbon shows as well as extensive seismic surveys (some of which require re-processing) highlighting additional exploration potential of the project.
The company estimates that the project has the benefit of approximately US$100 million in exploration expenditure to date and this information will be assessed by the groups M3 Mining has engaged under Master Service Agreements and develop work plans and budgets to advance the project.
Additional complementary energy assets that could further improve value for the company have also been reviewed by M3 Mining. The company does not intend to progress these additional opportunities unless and until the primary energy asset is secured.
The company has also met with senior members of government and the administrative bodies in relation to securing the asset. Each of these meetings has been informative and well received with both ministers and administrators keen to see the company secure the project and encouraging foreign investment in the energy sector.
Finally, M3 Mining has commenced discussions with commercial banks, an off-take group and corporate finance teams seeking financial support contingent on securing the project. While only in the early stages, there is considerable interest in assisting the company with securing the finances necessary to advance the project.
