MetalNRG PLC (LSE:MNRG) said the results of its strategic review would be that it will focus its acquisition activities on the mining sector and explore a dual listing on the Toronto Stock Exchange.
Following the review, which was initiated when experienced mining sector operator Chris Chadwick was appointed as an executive director at the start of the month, the company is set to steer its growth and value creation toward the metals and mining sector, where the board anticipates a potential bull-market cycle.
The plan to enhance shareholder value will be via a three-pronged approach targeting late-stage development projects set to begin production within 12 to 18 months; current production projects with significant exploration and development potential; and/or projects that present "blue sky growth opportunities that could become company-making mines of the future".
As part of the strategic review, advisers are being consulted to explore the possibility of a dual listing on the Toronto Stock Exchange, though the company acknowledged the benefits of maintaining its main board London Stock Exchange listing.
Indeed, directors believe the "company is currently undervalued and that existing shareholders will be protected when a reverse takeover is implemented [and] anticipates current shareholders to be offered a premium to current share price".
MetalNRG also revealed its intentions to divest its investment in EQTEC Italia as its partnership with EQTEC is now seen as non-core.
A decision on its Gold Ridge project in Arizona await the final geo-sampling results due by mid-October.
Director Rolf Gerritsen said working on the review with Chadwick was "extremely exciting" and he is now looking forward to driving the implementation plan forward.
Chadwick added that the board believes "we have a strong value proposition that could be strongly enhanced with a potential dual-listed structure. We are now entering the next phase where we will focus on executing the new strategy."