Atlas Metals Group, formerly known as MetalNRG, has officially canceled its plan to acquire the Compagnie Minière de Oumejrane (CMO), a subsidiary of Morocco’s mining giant Managem.
The deal, initially signed in October, would have transferred all of CMO’s shares to Atlas Metals but fell through due to funding challenges.
Rolf Gerritsen, CEO of Atlas Metals, confirmed the development of the acquisition depended on raising MAD 183 million within a set timeframe, but efforts to secure the required funds from institutional investors fell short.
Consequently, Managem terminated the agreement, halting the transaction altogether.
Adding to the financial blow, Orion Resource Partners, which had pledged a convertible loan of mad 253 million to support the purchase, issued a notice of default.
The loan was contingent on the sale agreement, which is now null and void. No funds from the loan were disbursed, and Atlas Metals is now in a precarious position.
Despite these setbacks, Atlas Metals stated that it is exploring alternative strategies to revive the project. However, the company cautioned that there are no guarantees of finding a feasible solution. It pledged to keep stakeholders informed of any updates as the situation evolves.
The collapse of the deal highlights the risks and uncertainties in securing large-scale funding in volatile market conditions, especially in the mining sector.