TIDMPOW
RNS Number : 5429K
Power Metal Resources PLC
22 December 2022
22 December 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Commercial Update
Power Metal Resources PLC (LON:POW), the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces a commercial update
providing the latest position in respect of various corporate
activities recently completed or underway.
Paul Johnson, Chief Executive Officer of Power Metal Resources
PLC commented:
"I am a resolute believer in the junior resource sector and its
ability to deliver considerable returns for investors. The sector
is, ultimately, driven by cyclicity caused by shifting supply and
demand fundamentals for the underlying metals.
Over the past 4 years, Power Metal has assembled a unique and
diverse global project portfolio which is ready for what I believe
will be a longstanding and robust bull market for junior resource
companies.
After a long-sustained bear market for resource juniors, I
believe that the sector recovery has now begun as demonstrated by
rising metal prices and the evident growing demand for metals in
most industrial settings and for investment security.
In the last 6 months we have seen the IPO of Power Metal
investee company First Class Metals PLC and completion of the Kanye
Resources disposal to Kavango Resources PLC. These two transactions
alone brought additional listed securities into the Power Metal
portfolio that are together currently worth c.GBP4.1m (at the
mid-market price on 21.12.22 market close).
Below you will see a further five transactions which each have
the potential to add considerably to the Power Metal balance sheet.
This corporate activity will complement our ongoing and successful
exploration work at the Molopo Farms Complex and Tati Gold projects
both located in Botswana and our Athabasca Basin uranium interests
in Canada.
I would like to thank our professional teams for working so
diligently on multiple complex transactions and positioning us
where we are today. I also want to thank our shareholders who have
stayed with us, through this challenging part of the cycle,
patiently supporting us while we continue to push the business
forward in advance of the next bull market.
We approach the Christmas and New Year break with a heightened
sense of excitement and optimism for 2023 and beyond."
Company/Operations POW Status
%
First Class Metals 27.91% Following the disposal of Power Metal's
PLC (LON:FCM) Schreiber-Hemlo interests to FCM
Exploration in the in September 2021, FCM successfully
Schreiber-Hemlo region secured admission to the Official
of Ontario, Canada. List (by way of a Standard Listing
www.firstclassmetalsplc.com under Chapter 14 of the Listing Rules),
on 29 July 2022.
Power Metal holds a total of 18,516,097
FCM shares, which are subject to
a hard lock-in agreement until 29
July 2023, with a further 12-month
orderly market arrangement thereafter.
The Company also holds 517,705 warrants
to acquire new FCM ordinary shares
at a price of 10p and with an expiry
date of 29 July 2023.
At the closing market mid-price of
17p on 21 December 2022 the value
of Power Metal's shareholding in
FCM is GBP3,194,027.
---------- -----------------------------------------------------------------
Kavango Resources 9.85% Following completion of the disposal
PLC (LON:KAV) of Power Metal's interest in the
Exploration in Botswana Kanye Resources joint venture back
www.kavangoresources.com to partner KAV, as announced in November
2022, Power Metal's interests in
KAV, which is also on the Official
List of the London Stock Exchange,
include:
* 69,500,000 KAV ordinary shares.
* Warrants to acquire 4,750,000 KAV ordinary shares at
a price of 2.5p (expiry April 2023)
* Warrants to acquire 30,000,000 KAV ordinary shares at
a price of 4.25p (expiry January 2025)
* Warrants to acquire 30,000,000 KAV ordinary shares at
a price of 5.5p (expiry January 2025)
In addition, Power Metal holds a
1% net smelter return ("NSR") royalty
across all Kanye Resources properties
as at 8 July 2022.
At the closing market mid-price of
1.5p on 21 December 2022 the value
of Power Metal's shareholding in
KAV is GBP1,042,500.
---------- -----------------------------------------------------------------
Golden Metal Resources 83.13% During 2021, Power Metal acquired
PLC (GMT) outright three projects located in
Exploration and development Nevada, USA (Pilot Mountain, Garfield
in Nevada, USA. and Stonewall) and secured an option
www.goldenmetalresources.com to acquire a 100% interest in a fourth
project (Golconda Summit).
The projects were acquired through
GMT, then a wholly-owned subsidiary
of Power Metal and a vehicle incorporated
in advance of a planned listing in
the London capital markets.
A subsequent Pre-IPO financing for
GMT raised GBP750,000 before expenses.
Power Metal currently holds 49,874,437
GMT shares or 83.13% of GMT issued
share capital.
GMT has now completed the pre-IPO
work required and a listing document
has now been prepared (subject to
final data additions) and the IPO
financing is underway.
A series of roadshow meetings have
been undertaken with interested parties
including institutions based in Canada
and the UK and to date the GMT business
model and listing proposal has been
well received. These meetings will
continue over the coming weeks and
into the new year, allowing those
with conflicts during the holidays
to finalise their interest in the
IPO early in the new year.
GMT is looking to complete the IPO
Financing and, subject to standard
regulatory approvals, the final listing
steps in early 2023.
---------- -----------------------------------------------------------------
First Development 62.12%* During 2021. Power Metal acquired
Resources PLC (FDR) three exploration projects in Western
Exploration in Western Australia (Wallal, Braeside West
Australia and the and Ripon Hills),
Northern Territory The projects were acquired through
of Australia. FDR, then a wholly-owned subsidiary
www.firstdevelopmentresources.com of Power Metal and a vehicle incorporated
in advance of a planned listing in
the London capital markets.
Subsequently, in 2021, FDR acquired
an additional exploration project
in the Northern Territory of Australia
(Selta).
Additional commercial transactions
were undertaken by FDR in 2022 with
the acquisition of a 100% interest
in Pardoo Resources Pty Ltd (a project
holding company) and the purchase
of NSR royalties retained by the
vendors of the vehicles holding the
above projects.
Power Metal currently holds 38,605,697
FDR shares or 62.12%* of FDR issued
share capital.
FDR is nearing completion of all
the IPO work streams and is finalising
the listing document in preparation
for a planned IPO financing roadshow
which is expected to commence in
early 2023.
---------- -----------------------------------------------------------------
New Ballarat Gold 49.9% In 2020 Power Metal established a
PLC (NBGC) joint venture with Red Rock Resources
Exploration in the PLC (LON:RRR) focused on exploration
Victoria Goldfields projects in the Victoria Goldfields,
of Australia. Australia.
https://www.powermetalresources.com/pr The joint venture has secured a ground
oject/victoria-goldfields/ footprint in the Victoria Goldfields
. comprising 1,841km(2) of granted
licences and 493km(2) of exploration
licence applications awaiting grant.
The footprint includes two former
high-grade working gold mines (Ajax
and Berringa), with Berringa currently
the subject of an ongoing diamond
drilling programme.
A National Instrument 43-101 technical
report has been prepared covering
7 of the licences, as an underlying
document in preparation for listing
of NBGC.
The joint venture has a local operational
team and is based out of Ballarat,
Victoria.
Across the footprint extensive evidence
of historical gold workings exist,
and outside of the footprint boundaries
numerous positive exploration updates
have been noted by fellow exploration
companies.
For example, we note recently the
discovery of extensive gold mineralisation
by Southern Cross Gold Ltd (a spin-out
listing from Mawson Gold Ltd) included
an intersection of 305.8m at 2.4g/t
gold at their Sunday Creek project
situated 5km east of the Kilmore
project held by NBGC. Link here:
https://wcsecure.weblink.com.au/pdf/SXG/02612149.pdf
With the increasing confidence in
the market and support for high-quality
gold exploration investment opportunities,
Power Metal is working with partner
Red Rock Resources PLC to identify
the best commercial structure and
expeditious pathway to enable the
planned listing to proceed.
---------- -----------------------------------------------------------------
NewCo 20% Power Metal announced on 15.11.22
Exploration in Queensland's (^) the merger of its wholly owned Australian
Mount Isa copper belt holding company which holds a 100%
and in South Australia. interest in the Wilan Project located
NewCo to be incorporated in South Australia, with two other
shortly to allow the Australian exploration companies
merger of three companies with 100% owned interests in the
and their interests Mount Isa copper belt region of Queensland,
in South Australia Australia.
and Queensland as The intention is to secure a planned
per POW RNS 15.12.22). new listing on a recognised stock
NewCo website under exchange of the new merger company
development. NewCo, comprising the South Australia
and Queensland interests, or to dispose
of the new merger company into a
currently listed or to be listed
vehicle.
Work is underway now to consider
all available options and updates
will be provided to the market in
due course.
---------- -----------------------------------------------------------------
Uranium Energy Exploration 50-55%() Power Metal has agreed the disposal
PLC (UEE) of two uranium properties to UEE
Uranium exploration subject to completion of a planned
in the Athabasca region listing of UEE.
of Canada Following discussions with UEE, Power
www.uraniumenergyexploration.com Metal has agreed to extend the period
for completion of the planned listing
by 3 months to 31 March 2023. The
intention is to list on a different
exchange to that previously planned
and to add further uranium projects
to the UEE portfolio prior to the
planned listing.
As a result, UEE is now actively
reviewing additional opportunities
within the uranium space to bolster
their portfolio in advance of the
planned listing.
The proposed business model (Uranium
exploration focused on the Athabasca
Basin area of Saskatchewan, Canada)
has the support in principle of proposed
investors in an IPO financing and
would bring the first Athabasca focused
investment proposition to the London
capital markets.
Further updates to follow as plans
continue to advance.
---------- -----------------------------------------------------------------
(^) subject to completion of Merger announced 15.12.22.
() subject to completion of disposal of Reitenbach and E-12
properties, announced on 8.8.22 and 4.11.22, respectively.
(*) reducing to 58.59% on issue of equity for NSR buyout
announced 5.12.22
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.
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END
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