The natural resource investing and exploration company said that, following its last announcement to the market on December 24, 2020, detailing the terms of a variation agreement with LVG, the group has been working on reassessing the transaction and completing further due diligence.
However, MetalNRG added, in the opinion of its board, the original attractiveness of the transaction's value has significantly diminished, and it is not satisfied that certain aspects of tenement ownership can be resolved with the certainty needed to proceed in the near term.
In a statement, Rolf Gerritsen, CEO of MetalNRG commented: "We have worked tirelessly on the LVG transaction, however, we have concluded that it is not possible to bring LVG into production, as our plans called for, within 12 months, or at close to the budget originally presented and accordingly we have decided not to proceed. This is disappointing news but the Board set prudent criteria for acquisitions to create near term shareholder value and we feel that we can no longer support the LVG proposition."
MetalNRG said it has informed LVG of its decision.