TIDMPOW
RNS Number : 1574R
Power Metal Resources PLC
25 October 2023
25 October 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
Business Update
Power Metal Resources PLC (AIM:POW), the AIM listed metals
exploration and development company, provides a Business Update for
shareholders following completion of the Company's financial year
on 30 September 2023.
Sean Wade, Chief Executive Officer of Power Metal Resources plc,
commented:
"I am pleased to provide this update for shareholders
summarising the status of Power Metal's extensive business
interests and our key business objectives for the near term.
The team are working intensively and concurrently on significant
exploration and corporate initiatives, details of which are
outlined below.
We expect various news updates in the near term, informing
shareholders of the outcomes of current exploration programmes, the
launch of new exploration activities and the results of our
corporate activities seeking value crystallisation and streamlining
of the Company.
I am well aware that our long-term shareholders have been
extremely patient in what are close to unprecedented market
conditions. I am very confident that the actions we are taking,
coupled with the positive macro backdrop for commodity prices, will
translate into significant returns for shareholders over time."
KEY BUSINESS OBJECTIVES
Power Metal's key business objectives in the short term are as
follows:
- Complete transactions with third parties looking to acquire
business interests, enter into project joint ventures, or otherwise
engage in our various ongoing activities;
- Focus on major metal discoveries from our retained in-house
portfolio through cost-effective exploration including drilling,
utilising our strong financial position and cash generated from
future project disposals;
- Expand the ownership of Power Metal shares into new investor
groups, a process that started with the May 2023 GBP2.7m financing
corner-stoned by Term Oil Inc, a Company controlled by
internationally recognised resources specialist Rick Rule;
- Identify new territories for future business opportunities and
incoming project level investment, including notably Saudi Arabia
and Oman, where we recently conducted in-country meetings and site
visits;
- Focus on demonstrable value growth in the Power Metal
portfolio through exploration and value crystallisation, to
materially increase the Company's market valuation.
KEY OPERATIONAL ACTIVITIES
Note: the information below covers the certain areas of internal
operational activities within Power Metal, where the Company is
targeting near term value generative outcomes. It does not cover
all the activities within the Company or the Company's investment
holdings, where we also note extensive operational activity
continues.
EXPLORATION ACTIVITIES
Key Exploration Activities Table:
PROJECT LOCATION NEXT STEPS
Athabasca Uranium Canada Completion of ongoing 2023 exploration
programme and publication of findings
targeting significant uranium discoveries.
---------- --------------------------------------------
North Wind Project Canada Receipt of assay results from
2023 field exploration targeting
a significant lithium discovery.
---------- --------------------------------------------
Molopo Farms Botswana Drilling of major conductor targeting
Complex nickel/platinum group element discovery.
---------- --------------------------------------------
Tati Gold Project Botswana Completion of ongoing 2023 exploration
programme and publication of findings.
---------- --------------------------------------------
Wallal Project Australia Drilling of major magnetic bullseye
target in Paterson Region with
geophysical signature similar to
Greatland Gold's Havieron Project.
---------- --------------------------------------------
ATHABASCA URANIUM EXPLORATION
Power Metal currently has a 100% interest in 17 uranium
properties covering over 1000km(2) in the Athabasca Region of
Saskatchewan, Canada. This is the largest ground footprint in the
Athabasca Region held by a UK listed company.
Power Metal's technical team selected the Athabasca footprint by
painstaking review of historical exploration data from work
conducted and paid for by others, applying modern geological
knowledge and techniques to identify the best available ground. The
ground was available because other explorers had relinquished their
interests during the long-term uranium bear market or because the
geological opportunities the Company identified had, at that stage,
been noted by others.
2023 has seen the largest Athabasca uranium exploration
programme ever undertaken by the Company with some very significant
early findings announced recently.
Once completed our 2023 exploration programme will cover
approximately 10 properties and to date we have announced major
exploration results from across the portfolio, with further updates
expected in the near term as our field teams remain active and a
range of exploration results are awaited.
AFRICA EXPLORATION
Tati Project (POW 100%)
Exploration work at Tati has continued to validate the gold
mineralisation within the previously identified 8km long gold
trend. This work continues with further infill sampling focused on
newly discovered target areas of gold mineralisation within the
trend which pending analysis of final results, may be followed by
reverse circulation and/or diamond drilling which will be targeted
towards the highest profile areas.
In the Company's view there is considerable evidence building
for a potentially significant, economic gold deposit at Tati.
Moreover, that there is potential for rapid project development
with a recommencement of historic mining activities, subject to
applicable local regulatory approvals. This is made more feasible
if the Company can rapidly demonstrate the extent of gold
mineralisation within the project boundaries. The latter is Power
Metal's present focus.
Molopo Farms Complex Project (POW 87.71%)
Extensive exploration to date has confirmed the feeder zone
geological model, confirmed the presence of nickel sulphides and
platinum group elements ("PGEs") through drilling as announced on
27 April 2023 which includes 2.3m @ 0.56g/t Pt+Pd+Au & 0.17% Ni
from DDH1-6B, and by aggregating and analysing the extensive
database of historical work has now identified the highest profile
conductor drill target to date.
Power Metal sees the potential for a district-scale nickel and
PGE discovery at Molopo and is planning the next diamond drill
programme with this objective in focus.
NORTH AMERICA EXPLORATION
North Wind (POW 100%)
North Wind is held by ION Battery Resources Limited a 100% owned
POW subsidiary. A lithium focused ground exploration programme
conducted earlier this summer led to the identification of several
pegmatites.
The results from assay testing of outcrop rock samples from the
identified pegmatites, together with those from extensive soil
geochemical sampling at North Wind, are expected in the near
term.
CORPORATE DEVELOPMENT ACTIVITIES
The Power Metal model is to advance robust internal exploration
programmes to seek major metal discoveries and build underlying
project value, whilst also looking in parallel for significant
value crystallisation through corporate activity to build the value
of the Company.
In some cases, exploration programmes continue across certain
projects where there has been incoming third-party interest. Power
Metal's policy is to continue planned exploration notwithstanding
discussions that may be occurring in parallel.
Athabasca Uranium Corporate Activity
Given the resurgence in the uranium sector, Power Metal has seen
a considerable increase in the level of interest in our strategic
Athabasca holdings.
Power Metal has previously announced the disposal of Reitenbach
and E-12 properties into Uranium Energy Exploration ("UEE"). Plans
for an IPO of UEE have are advancing and a further market update is
expected shortly.
The Company has also received third party interest across our
uranium portfolio and further commercial transactions are
anticipated however shareholders should note that there can be no
certainty of any such transactions being concluded.
Africa Corporate Activity
Both Tati and Molopo Farms Complex projects have received third
party interest and the Company continues in discussions to explore
complementary, joint venture and other project level
partnerships.
Power Metal continues to liaise with our partner to seek a new
pathway for advancement of the Haneti Project in Tanzania where the
Company holds a 35% interest.
North America Corporate Activity
Power Metal's 100% owned ION Battery Resources Limited ("ION")
holds the North Wind project where lithium focused exploration is
currently underway, together with the Authier North lithium project
and Doerksen Bay graphite project.
The next corporate steps for ION are to be determined following
receipt of assay results from the North Wind summer exploration
programme and a further announcement will be made in due
course.
The Company's 30% interest in the Silver Peak project remains as
previously stated and we are working with our partners on the next
commercial steps for this important asset.
Australia Corporate Activity
New Ballarat Gold PLC (49.9% POW) has secured an enviable ground
footprint in the Victoria Goldfields of Australia, including two
high grade former working gold mines. Power Metal is working with
its joint venture partner to create a pathway to expedite the
commercial success of this strategic Australian opportunity and
hopes to announce an update with progress in the near future.
First Development Resources PLC ("FDR")(58.59% POW) holds
strategic exploration projects in Western Australia and the
Northern Territory and has been fully prepared for an IPO listing
which subject to a return to normalised market conditions and final
regulatory approvals can be undertaken at short notice. In Western
Australia FDR holds the Wallal Project which includes the company's
primary target - the Eastern Anomaly, a magnetic bullseye target
with a geophysical signature similar to Greatland Gold's Havieron
discovery in the Paterson Region.
FDR has secured a c. GBP110,000 Co-funding grant from the
Western Australian government as part of the Exploration Incentive
Scheme to be set against the costs of Wallal drilling and has
received all the necessary local approvals for the drill to be
undertaken. FDR has also agreed a contract with DDH1 Drilling Ltd
to undertake the Phase I diamond drilling drill programme and has
prepared the access and the drill pad location in readiness for
drilling. Recognising this progress the early commencement of
drilling is being considered alongside the work being undertaken to
finalise the IPO listing.
Finally, Power Metal holds a 20% interest in New Horizon Metals
Pty Ltd, which holds projects in Queensland and South Australia,
and is working towards the completion of a listing in the
Australian capital markets.
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
Sean Wade (Chief Executive Officer) +44 (0) 20 3778 1396
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
BlytheRay (PR Advisors) +44 (0) 20 7138 3204
Tim Blythe
Megan Ray
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.
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
grow the Company, or may be returned to shareholders through share
buy backs, dividends or in-specie distributions of assets.
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END
UPDUSVVROKURUAA
(END) Dow Jones Newswires
October 25, 2023 02:00 ET (06:00 GMT)
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