Atlas Metals Group PLC on Monday said its agreement to acquire Compagnie Miniere de Oumejrane from Managem SA, a mining company in Morocco, has been terminated after Atlas failed to raise the required funds within the agreed timeframe.

Shares in Atlas Metals plummeted 62% to 10.71 pence in London after the announcement was made on Tuesday morning. Earlier, they hit an intraday - and new 52-week - low of 7.20p.

The investor in natural resources and energy, formerly known as MetalNRG, had signed a sale and purchase agreement in October to acquire CMO. However, Atlas said it was unable to raise the £15 million needed for the transaction due to feedback from prospective investors during a planned equity placing.

As a result, Managem terminated the agreement effective immediately. Additionally, a fund managed by Orion Resource Partners, which had committed to providing a $25 million convertible loan note to fund the acquisition, issued a default notice as the loan was contingent on the acquisition’s completion. However, Atlas had not drawn down any of the Orion funds.

Atlas said it is exploring alternative options to salvage the transaction but acknowledged ‘there can be no certainty that the transaction will be successfully completed’.

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