TIDMPOW
RNS Number : 6052I
Power Metal Resources PLC
05 December 2022
5 December 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
First Development Resources - Selta Lithium Exploration and
Company Update
Power Metal Resources PLC (LON:POW), the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio provides an update to shareholders in
respect of lithium focussed fieldwork at the Selta Project ("Selta"
or the "Project"), located in Australia's Northern Territory. Selta
is held through its subsidiary First Development Resources PLC
("First Development Resources" or "FDR") which is seeking a planned
listing in the London capital markets (Power Metal holds 62.12% of
FDR and 58.59% after transaction outlined below).
HIGHLIGHTS:
Phase II Lithium Focused Exploration Programme
-- Lithium focussed Phase II follow-up fieldwork now underway to
further examine the zonation of a prospective pegmatite system
present at FDR's 100% owned Selta Project. Pegmatites are the
target lithology which have the potential to host lithium
mineralisation.
-- Approximately 700 potential outcropping pegmatites have been
identified by desktop analysis, within a target area of circa
180km(2) (see Fig.1 below). Given the size of the prospective area
and the number of targets generated, the planned fieldwork will
initially focus on a 30km(2) area in the southeast of the Project
(see Figure 1).
-- The Phase II fieldwork follows on from the successful
findings of the Phase I field reconnaissance programme in June
2022, which confirmed the presence of pegmatite geology over a
small area within the south of the Project, with lithogeochemical
analysis of 17 samples suggesting potential for a zoned pegmatite
system originating from the nearby granites (1) .
-- A desktop analysis of lithium specific publicly available
datasets, satellite imagery and purpose commissioned hyperspectral
analysis previously outlined the presence of potentially pervasive
outcropping pegmatites (2, 3) which are the subject of the current
fieldwork campaign.
-- Further information in respect of the lithium work programme is provided below.
Company Update
-- FDR continues to advance preparations for its planned listing
and is very close to completion of all material work streams.
-- To further enhance FDR's position in advance of the planned
listing and in light of the positive progress across the
exploration programmes at all projects, the net smelter return
("NSR") royalties retained by the original vendors of FDR's
projects have been purchased by FDR.
-- The two NSRs were originally announced on the acquisition of
First Development Resources Pty Limited ("FDR Australia")(RNS:
29.10.2021 (4) ) and URE Metals Pty Ltd ("URE Metals")(RNS:
19.11.2021 (5) ) and were each a 2% NSR, with a 1% buyout right for
A$1,000,000. The NSRs were held by the original shareholders of FDR
Australia and URE Metals whose shareholdings were previously
acquired, as outlined in the above dated announcements.
-- Each NSR has been purchased for GBP150,000, payable through
the issue of 1,875,000 new FDR ordinary shares of 1.0p ("New FDR
Shares") at an issue price of 8p per share, for a total
consideration of GBP300,000 through the issue of 3,750,000 New FDR
Shares. The price of 8p per New FDR Share is specific to this NSR
purchase transaction only and should not be taken as established
pricing in relation to an IPO financing for the planned listing of
FDR in the London capital markets.
-- As a result, FDR holds a 100% interest in all projects and
there are now no NSRs over any of its properties.
-- Following the issue of the New FDR Shares, the total FDR
issued share capital will amount to 65,894,076 shares of which
Power Metal holds 38,605,697 shares representing 58.59% of FDR
issued share capital.
Tristan Pottas, Chief Executive Officer of First Development
Resources commented:
"Much of the recent focus has been on preparing for FDR's
planned UK listing, however, the team has also remained committed
to advancing the project portfolio for the ongoing benefit of FDR
shareholders.
Over the past several months the FDR team has worked hard to
develop strong relationships with the key stakeholders at Selta to
facilitate the efficient deployment of field teams to site to
complete value enhancing work.
The technical analysis of the outcropping pegmatites will
significantly improve our understanding of the system present at
Selta and will help inform future work programmes with the
intention of identifying zones within the Project with the
potential to host lithium mineralisation."
Paul Johnson, Chief Executive Officer of Power Metal Resources
commented:
"The search for economic deposits of lithium continues to be the
focus of many exploration companies globally as they look to
capitalise on the strong market conditions which continue to
reflect the lack of supply for the ever-growing demand for battery
metals including lithium.
Importantly, with our readiness for diamond drilling at Wallal
and the ongoing work programme at Selta, we are seeking to ensure
FDR is a vibrant exploration business when listed.
The buyout of all project royalties by FDR was an important
step, simplifying the structure of the planned listing interests
and reflecting the value of FDR's project portfolio which has been
significantly enhanced since their original acquisition."
Figure 1 : Selta Project showing lithium pegmatite and rare
earth element prospective areas of interest and target area for
current Phase II pegmatite focussed fieldwork
BACKGROUND - SELTA PROJECT LITHIUM REVIEW
The in-depth review of all publicly available geological,
geophysical and geochemical data for the Selta Project identified
multiple uranium and rare-earth element ("REE") targets within the
Selta Project area and highlighted the potential for lithium, gold
and base-metal mineralisation. The potential for lithium presented
an additional opportunity for a mineral discovery within the Selta
Project area, an opportunity which had previously been unknown. To
gain a better understanding of the potential for
lithium-caesium-tantalum ("LCT") type pegmatites, the Company
immediately commenced a lithium review of all publicly available
data to help refine target areas for further investigation and
deployed a team to Selta to confirm the presence of pegmatite
geology.
The announcement in respect of this lithium review and
subsequent reconnaissance may be viewed through the following
link:
https://www.londonstockexchange.com/news-article/POW/first-development-resources-company-update/15562865
During the reconnaissance the site team was able to confirm the
presence of pegmatite geology and collect samples to determine
mineralogy.
The results of the sampling and subsequent geochemical testing
of pegmatites on the property indicated that the pegmatites
analysed on the southwest of the property are part of zoned
pegmatite system, most likely originating from the nearby granite.
The initial sampling campaign programme covered only a very small
portion of the property but provided valuable information for
future exploration programmes.
SELTA PEGMATITE SAMPLING PROGRAMME
The mineral deposit model for LCT pegmatites is well defined by
the United States Geological Survey and suggests LCT pegmatites
tend to show a regional mineralogical and geochemical zoning
pattern with respect to the inferred parental granite, with the
greatest enrichment in the more distal pegmatites. FDR's initial
analysis of data acquired during the Selta lithium review supports
this model.
FDR now plans to expand on this initial interpretation and
conduct further exploration over a broader area. Using the data
acquired from previous desktop analysis and reconnaissance, a field
team led by FDR's exploration manager will conduct a targeted
pegmatite mapping and sampling programme to acquire representative
geochemical and geological data in the south of the Selta Project,
where previous work has proven the presence of a pegmatite
system.
This work aims to constrain the zonation believed to be present
in the pegmatite system. The field work will include the systematic
mapping of the surface expression of pegmatites along with the
collection of representative rock chip samples, which will then be
sent for geochemical analysis. This field work will feed into FDR's
technical understanding of pegmatites at Selta, to provide targets
and inform future work programmes.
QUALIFIED PERSON STATEMENT
The technical information contained in this disclosure has been
read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM,
FGS), who is a qualified geologist and acts as the Qualified Person
under the AIM Rules - Note for Mining and Oil & Gas Companies.
Mr O'Reilly is a Principal consultant working for Mining Analyst
Consulting Ltd which has been retained by Power Metal Resources PLC
to provide technical support.
REFERENCE NOTES
1 Company announcement, First Development Resources - Company Update, 29 July 2022
(
https://www.londonstockexchange.com/news-article/POW/first-development-resources-company-update/15562865
)
2 Company announcement, First Development Resources - Selta Lithium Update, 13 June 2022
(
https://www.londonstockexchange.com/news-article/POW/first-development-resources-selta-lithium-update/15491241
)
3 Company announcement, Selta Project - Multiple Target Areas Identified, 16 March 2022
(
https://www.londonstockexchange.com/news-article/POW/selta-project-multiple-target-areas-identified/15371081
)
4 Company announcement, Power Metal Acquires 100% of FDR Australia, 29 October 2021
( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w04g16x )
5 Company announcement, Acquisition of Uranium & Rare-Earth
Element Project - Australia, 19 November 2021
(
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w1ye76w
)
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For further information please visit
https://www.powermetalresources.com/ or contact:
Power Metal Resources plc
Paul Johnson (Chief Executive Officer) +44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat +44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson +44 (0) 1483 413 500
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson +44 (0) 20 7330 1883
NOTES TO EDITORS
Power Metal Resources plc - Background
Power Metal Resources plc (LON:POW) is an AIM listed metals
exploration company which finances and manages global resource
projects and is seeking large scale metal discoveries.
The Company has a principal focus on opportunities offering
district scale potential across a global portfolio including
precious, base and strategic metal exploration in North America,
Africa and Australia.
Project interests range from early-stage greenfield exploration
to later-stage prospects currently subject to drill programmes.
Power Metal will develop projects internally or through
strategic joint ventures until a project becomes ready for disposal
through outright sale or separate listing on a recognised stock
exchange thereby crystallising the value generated from our
internal exploration and development work.
Value generated through disposals will be deployed internally to
drive the Company's growth or may be returned to shareholders
through share buy backs, dividends or in-specie distributions of
assets.
Exploration Work Overview
Power Metal has multiple internal exploration programmes
completed or underway, with results awaited. The status for each of
the Company's priority exploration projects is outlined in the
table below.
Project Location Current Work Completed or Results Awaited
POW % Underway
Athabasca Canada 100% Preliminary planning Work programmes
Uranium for work in Spring/Summer for Spring/Summer
2023 is ongoing. 2023.
--------- -------- --------------------------- ------------------------
Molopo Botswana 87.71% Diamond drill programme Drill programme
Farms underway. MLEM surveys updates and findings
planned over additional from further MLEM
AEM targets identified. survey work.
--------- -------- --------------------------- ------------------------
Tati Botswana 100% RC drilling and sampling Mine dumps processing
Project of mine dumps complete. and project commercial
and exploration
next steps.
--------- -------- --------------------------- ------------------------
Exploration work programmes may also be underway within Power
Metal investee companies and planned IPO vehicles where Power Metal
has a material interest, the findings from which will be released
on their respective websites, with simultaneous updates through
Power Metal regulatory announcements where required. These
interests are summarised in the table below:
Company Status/Operations Link
First Class Investment - www.firstclassmetalsplc.com
Metals PLC POW 27.91%
Exploration
in the Schreiber-Hemlo
region of Ontario,
Canada
------------------------ ------------------------------------------------------------------
Kavango Investment - www.kavangoresources.com
Resources POW 9.85%
PLC Exploration
in Botswana
------------------------ ------------------------------------------------------------------
First Development Planned IPO www.firstdevelopmentresources.com
Resources - POW 62.12%*
PLC (58.59% post
NSR buyout)
Exploration
in Western Australia
and the Northern
Territory of
Australia
------------------------ ------------------------------------------------------------------
Golden Planned IPO www.goldenmetalresources.com
Metal Resources - POW 83.13%
PLC Exploration
and development
in Nevada, USA
------------------------ ------------------------------------------------------------------
New Ballarat Planned IPO A new website is currently in development
Gold PLC - POW 49.9% which will be found at www.newballaratgoldcorp.com
Exploration .
in the Victoria In the interim further information
Goldfields of in respect of NBGC can be found at:
Australia https://www.powermetalresources.com/project/victoria-goldfields/
.
------------------------ ------------------------------------------------------------------
Uranium Planned IPO www.uraniumenergyexploration.com
Energy Exploration - POW on listing
PLC estimated 50-55%
Uranium exploration
in the Athabasca
region of Canada
------------------------ ------------------------------------------------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDUPGAWPUPPGUA
(END) Dow Jones Newswires
December 05, 2022 05:41 ET (10:41 GMT)
African Battery Metals (LSE:ABM)
Gráfico Histórico do Ativo
De Jan 2025 até Fev 2025
African Battery Metals (LSE:ABM)
Gráfico Histórico do Ativo
De Fev 2024 até Fev 2025
