Power Metal Resources #POW – Botswana Molopo Farms Complex Commercial Update – Kalahari Key Restructuring Progressing Well and Intention to Seek Listing
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce a commercial update in respect of Kalahari Key Mineral Exploration Pty Ltd and the Molopo Farms Complex Project.
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
“We are delighted to see the MFC Project structuring discussions progressing so efficiently and we continue to work with our partners to implement this as quickly as possible.
The decision to create a new UK plc to hold the remaining 60% interest in the MFC Project is an important step. We believe the planned UK listing will enable fuller recognition of the MFC Project’s value, particularly given the notable exploration success already achieved and the level of interest being shown in the Project. We also welcome Richard’s appointment as Newco CEO and note that as expected he is already pursuing matters with some determination.
For Power Metal we are pleased to support the listing of the new vehicle, which will enable our holding in Kalahari Key to have demonstrable value, further building our working capital with additional listed equity.
In the interim we continue to push on with technical work at the MFC project and further updates are anticipated in the near term.”
Background
As announced on 22 April 2021 Power Metal has earned-in to a 40% direct interest in the MFC Project, which is targeting prospective magmatic intrusion-hosted massive nickel sulphide and platinum-group element (“PGE”) mineralisation in Botswana. The balancing 60% direct interest is held by Kalahari Key.
It is the intention of Power Metal to retain ownership of its 40% direct MFC Project interest at this time.
Restructuring Process
To reflect the new ownership structure a number of steps are planned as follows:
1. Kalahari Key will remain a single project holding company and continue to manage the MFC project, and a new local board will be established including at least one director from Power Metal.
2. The share capital of Kalahari Key will be restructured to reflect a new ownership structure for the MFC Project with 60% of Kalahari Key shares held by existing Kalahari Key shareholders and 40% of shares held by Power Metal.
3. The above 60% Kalahari Key shareholding will be held through a newly formed UK plc (“Newco”) in which existing Kalahari Key shareholders (including Power Metal) will have the same percentage ownership interest as currently held in Kalahari Key.
Proposed Listing of Newco
The intention is for Newco to list on a recognised stock exchange on the London capital markets during 2021 and for it to become a proactive resource exploration vehicle. Newco operations will principally include advancement of the MFC Project and the acquisition of additional opportunities, with a focus on Botswana.
Newco Management
A new Chief Executive Officer, Richard Nolan, has been appointed to manage Newco operations and the proposed listing process. Richard has over 20 years’ international experience in banking and management including equity research, mergers & acquisitions and private equity. He has held board level positions with several natural resource focused companies both private and publicly listed.
Additional Newco board appointments will be announced in due course.
Financing of Newco
Following settlement of any outstanding costs within Kalahari Key, the proceeds from a recent rights issue (raising circa US$259,000 and in which Power Metal took up its rights), when settled by participants, will be applied to initially fund Newco. Thereafter it is expected that Newco will seek additional funding through further private funding rounds or through an IPO on a recognised stock exchange.
Power Metal Interest in the MFC Project
Currently, before the restructuring above, Power Metal holds 18% of Kalahari Key and therefore with its 40% direct project interest has an overall effective economic interest in the MFC Project of 50.8%.
Following the restructuring and upon settlement of the Kalahari Key rights issue in which Power Metal has participated the Company will hold 21.7% of Newco, meaning its overall effective economic interest in the MFC Project will increase to 53.02%.
Latest Exploration Information
Latest exploration results from the MFC Project including assays from diamond drilling displaying significant nickel intersections were published on 8 April 2021 and may be viewed through the following link:
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious and base 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.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal #POW – Option Agreement for Botswana Gold-Nickel Project
Option Agreement – Botswana Gold-Nickel Properties
Company has Signed an Option Agreement to Acquire a 100% Interest in Two Gold – Nickel Prospecting Licences in the Tati Greenstone Belt, Botswana, with a down payment on drilling.
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce it has secured an option (the “Option”) to acquire two prospecting licences (“PLs”) prospective for gold and nickel and located upon the Tati Greenstone Belt, Botswana.
The Option allows for a 60 business day due diligence period, and should Power Metal exercise the Option, it will undertake the licence acquisitions through its newly formed 100% owned subsidiary Power Metal Resources Botswana (Pty) Limited (“Power Metal Botswana”).
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
“We recently formed Power Metal Botswana to provide a holding company for new acquisitions in Botswana and I am pleased to announce this first transaction. Subject to due diligence, this acquisition would give the Company exposure to a new strategic project in the heart of the Tati Greenstone Belt, an under explored area which we believe holds considerable potential for new gold and nickel discoveries.
This announcement further confirms the Company’s commitment to expanding our operational interests in Botswana, which is a first class destination for responsible exploration companies. Uniquely, the transaction incorporates an Option fee that is convertible into a down payment against project drilling in Botswana.
I look forward to providing further information as our due diligence work progresses.”
Vendor and Prospecting Licence Information
Vital Commodities Pty Ltd, a company registered and Incorporated in Botswana (“VC”) VC is a private Botswana company that owns two prospecting licences in Botswana, (the “Vendors”). VC is 100% owned by Equity Drilling Limited, a company registered and incorporated in Guernsey.
The PLs owned by the Vendors and the subject of this transaction are as follows:
PL127/2019
PL127/2019 is located near the southern extent of the north-northwest striking Tati Greenstone Belt, roughly 40km southwest of Francistown, Botswana, and less than 7km from the Mupane underground gold mine.
PL127/2019 covers a total area of 89km2 and is prospective for orogenic gold and intrusive magmatic nickel mineralisation.
Several untested kilometre-scale Arsenic (‘As’)- and Gold (‘Au’)-in-soil anomalies extend onto PL127/2019 from the northeast and southeast.
The licence is also believed to cover the southern extent of prolific gabbroic-troctolitic intrusions which host the Phoenix, Selkirk and Tekwane Ni-Cu-PGE rich deposits located along the periphery of the Tati Greenstone Belt less than 7km from the licence. The magmatic Ni-Cu-PGE potential the licence possesses has been generally overlooked by previous operators.
PL126/2019
PL126/2019 is located near the northern extent of the Tati Greenstone Belt, less than 10km southeast of Francistown and is adjacent to the Golden Eagle deposit (Shashe Mining Licence).
PL126/2019 covers a total area of 35km2 and is prospective for orogenic gold mineralisation. The licence hosts several untested arsenic and gold in-soil anomalies as well as a large historic mine dump which has received little known follow up or modern exploration.
Tati-Greenstone Belt Information
The Tati Greenstone Belt (“TGB”) is located in the vicinity of Francistown, adjacent to the Zimbabwe border, in north-eastern Botswana. With a total strike length of 65km and up to 20km in width the TGB hosts a large number of orogenic style gold deposits and several economically significant intrusive magmatic Nickel-Copper-Platinum Group Elements (“Ni-Cu-PGE”) rich sulphide deposits.
A gold rush started at Tati in 1867 leading to the establishment of Francistown and over 70 reported small scale gold mining operations.
The TGB is Botswana’s only gold producing region with the Mupane gold mine (held by Galane Gold Ltd) being the country’s only major gold producer. Mupane was formerly an open-pit operation and is now an underground mine. It is located in the southern part of the TGB.
The known nickel deposits on the greenstone belt consist almost entirely of disseminated to semi massive sulphide bodies hosted by a series of late stage gabbroic-troctolitic intrusive bodies. Significant nickel operations which operated until 2016, included the former Tati Nickel Mining’s Selkirk underground mine which commenced production in 1989 and the Phoenix open pit which started in in 1995. Both deposits are located in the south-central portion of the TGB.
Geologically the TGB is part of the Francistown Arc Complex within the southern margin of the Archean age Zimbabwe Craton in the northern contact zone of the Limpopo Belt. The principal lithologies of the TGB are lower greenschist to lower amphibolite facies volcanic and sedimentary rocks, constrained by three fault-bounded volcano-plutonic sequences which are intruded by granitoids.
Whilst there is a long history of small scale gold mining on the TGB, the Company believe it to be underexplored by modern standards and systematic exploration focussing on areas with sand cover and geophysics targeting greater depths, are likely to yield further gold and nickel discoveries.
Option Agreement Information
The Option:
- Power Metal has signed an option agreement to acquire a 100% interest in PL 126/2019 and PL 127/2019, being two granted prospecting licences in Botswana within the Tati Greenstone Belt and held by the Vendors.
- The Option provides a 60 business-day period, during which Power Metal may undertake due diligence and notify the Vendors of Option exercise to acquire 100% of P L 126/2019 and PL 127/2019 from the owner of the said prospecting licences.
- The Option fee is to be satisfied through a cash payment of £50,000 to the Vendors. The full amount of £50,000 paid may be credited and offset from the cost of the drilling u ndertaken by Equity Drilling Limited (100% owner of VC) at the two PLs which are the subject of this Option or at other Power Metal interests in Botswana. The payment will be made using existing Power Metal cash resources.
Upon Option Exercise:
- VC will subject, to local authority approvals, arrange immediate transfer PL 126/2019 and PL 127/2019 into Power Metal Botswana.
- The consideration items outlined below, following Option exercise, will not become due and payable until the necessary local authority approvals for the transfer to Power Metal Botswana have been received and the transfer completed.
- Should Power Metal at its sole volition exercise the Option for the acquisition of PL 126/2019 and PL 127/2019, the Company will pay an initial consideration of £25,000, payable through the issue to the Vendors of 833,333 new ordinary Shares of 0.1p each in the Company (“New Ordinary Shares”) at an issue price of 3.0 pence per New Ordinary Share (“Initial Exercise Shares”).
- Thereafter should Power Metal elect to proceed with the year 3 exploration spend programme (for the year ending 30 September 2022) it will pay a further consideration of £50,000, payable to the Vendors through the issue of 833,333 New Ordinary Shares at an issue price of 3.0p each for each licence where such spending is confirmed, thereby if both confirmed then 1,666,666 New Ordinary Shares would be issued (the “Further Exercise Shares”).
- In addition, Power Metal will pay a single further consideration payment of £100,000 through the issue the Vendors of 3,333,333 New Ordinary Shares at an issue price of 3.0p (“Final Exercise Shares”) if either of the two following conditions are met:
– (1) Confirmation of a 250,000 oz JORC (2012) compliant gold Mineral Resource across the two prospecting licences
– (2) Confirmation of a 5,000,000 tonne economic nickel deposit at a grade of >1.5% nickel.
- Additionally, the Company shall issue to VC 5,833,332 warrants (the “Vendor Warrants”) in two separate tranches of 2,916,666 warrants each:
- 2,916,666 Vendor Warrants shall be issued to acquire New Ordinary Shares at an exercise price of 5p per share, exercisable over a 2-year period from today’s date and which are only exercisable on completion of drilling against which the £50,000 offset payment has been made and successful transfer of PLs 126/2019 and 127/2019 to Power Metal Botswana (the “5p Vendor Warrants”). The 5p Vendor Warrants shall be subject to a 5-day VWAP accelerator, by which should Power Metal shares trade above 10p for 5 trading days then the Company shall have the right to serve notice on VC that it must exercise and pay for the exercised 5p Vendor Warrants within 14 calendar days or the 5p Vendor Warrants shall be cancelled.
- 2,916,666 Vendor Warrants shall be issued to acquire New Ordinary Shares at an exercise price of 7.5p per share, exercisable over a 2-year period from today’s date and which are only exercisable on completion of drilling against which the £50,000 offset payment has been made and successful transfer of PLs 126/2019 and 127/2019 to Power Metal Botswana (the “7.5p Vendor Warrants”). The 7.5p Vendor Warrants shall be subject to a 5-day VWAP accelerator, by which should Power Metal shares trade above 15p for 5 trading days then the Company shall have the right to serve notice on VC that it must exercise and pay for the exercised 7.5p Vendor Warrants within 14 calendar days or the 7.5p Vendor Warrants shall be cancelled.
- Up to 30 September 2022 Power Metal will engage VC to quote for all drilling activities undertaken on PL 126/2019 and PL 127/2019.
- The Vendors and their professional licensing and geological teams will continue to work with Power Metal following Option exercise to manage licences and third party relationships, undertake ground exploration and to help where appropriate to further build the licence footprint in Botswana. Reasonable commercial terms will be agreed for any additional work undertaken.
Glossary:
Orogenic Gold (Deposits) – Gold deposits found within metamorphic belts which form as a result of major crustal deformation events.
Intrusive Magmatic Nickel (Deposits) – Nickel deposits found at the base of large mafic and ultramafic intrusive bodies.
Arsenic-in-soil anomaly – Geochemical anomaly defined by increased arsenic levels over background.
Gold-in-soil anomaly – Geochemical anomaly defined by increased gold levels over background.
PGE – Platinum group elements (ruthenium, rhodium, palladium, osmium, iridium, and platinum)
Gabbroic-troctolitic intrusives – Coarse grained, dark coloured, intrusive rocks composed mainly of pyroxene, plagioclase and minor amounts of amphibole and olivine.
Lower greenschist to amphibolite facies – Metamorphic rocks with increased chlorite, serpentine, and epidote (greenschist), or amphibole and plagioclase (amphibolite) which are indicative of a high degree of metamorphism caused my intense heat and pressure in the subsurface.
Granitoids – Coarse grained igneous rock composed mostly of quartz, alkali-feldspar and plagioclase.
COMPETENT 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 Competent 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.
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Alan Green joins the UK Investor Magazine podcast to discuss the commodities super cycle – Mast Energy Developments #MAST, Advance Energy #ADV and Caerus Mineral Resources #CMRS
Alan Green discussed the commodities super cycle on the UK Investor Magazine Podcast as it began at the beginning of 2021. Since then, major commodities indices have increased dramatically with copper touching 10 year highs and Oil breaching $70.
Demand for commodities is increasing as economies reopen after the pandemic and under investment in commodity exploration and development has caught supply off guard leading to higher prices. This is particularly evident in Lumber markets which has seen $25,000 added to the cost of constructing the average US home.
With the Federal Reserve hinting QE tapering is some way off, meaning interest rate increases won’t be happening for some time, the path is clear for further commodity price rises. We explore what this means for equity markets and how commodities shares could outperform over the next decade.
We discuss Mast Energy Developments (LON:MAST), Advance Energy (LON:ADV) and Caerus Mineral Resources (LON:CMRS).
Echo Energy plc (ECHO) – Final results
Final Results
Echo Energy plc, the Latin American focused full cycle energy Company, is pleased to announce its audited results for the financial year ended 31 December 2020.
2020 Highlights:
- Fourfold increase in revenue to US $11.1 million (2019: US $2.6 million)
- Favourable fiscal environment have led to the receipt of certain VAT payments, improving business cashflow.
- Santa Cruz Sur net daily production in 2020 totalled 1,966 boepd:
- 10.2 mmscf/d of natural gas
- 259 bbls/d of oil and condensate
- In 2020, Echo’s net cumulative production was 0.72 MMboe:
- 3,750 mmscf of natural gas
- 94,693 bbls oil and condensate
- Company estimated reserves and resources as at 31 December 2020 net to Echo’s 70% interest:
- 1P (Proved): 3.13 MMBoe
- 2P (Proved & Probable): 4.06 MMboe
- Contingent Resources (High estimate): 7.20 MMboe (Best estimate 6.51 MMboe)
- Adapted swiftly during the period to challenges presented by COVID-19, reorganisation along value chains enabled Echo to lower operating costs and improve efficiencies
Post period end
- Company successfully completed the restructuring of both the Company’s EUR 20.0m 8.0% secured notes and the Company’s EUR 5.0m 8.0% secured convertible debt facility loan. This represented a landmark step for the business by materially improving the financial outlook through the deferral of maturity until Q2 2025 and no cash interest payments prior to the maturity date. The agreement, with the support of the debt holders not only substantially strengthens the balance sheet it enables for the reinvestment of cashflow into the business to drive further growth.
- Secured new gas sales contracts at premium rates to the prevailing spot markets in early Q1 2021.
- Echo entered into a cooperation agreementwith GTL International S.A. (“GTLI”) to seek future opportunities in Bolivia.
Martin Hull, Echo’s Chief Executive, commented:
“Echo’s resilience during a very challenging year has ensured that we have been able to continue our operations efficiently and build firm foundations commercially and operationally despite the difficult external conditions. Not only have we made significant cost-saving efforts across the Company and rebalanced our financial position to provide increased flexibility, but we have also achieved tremendous operational progress across our SCS assets where we currently benefit from a favourable fiscal environment and attractive gas sales agreements with key customers. Moving forward, we are excited by the continuing expansion opportunities at our SCS assets, where we aim to maximise production potential, and we are also encouraged by the potential for new hydrocarbon and/or renewable energy prospects in neighbouring Bolivia and elsewhere in the Region. The framework for 2021 and beyond has now been set in place, and we look forward to capitalising on our various growth catalysts.”
For further information, please contact:
| Echo Energy
Martin Hull, Chief Executive Officer
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via Vigo Communications |
| Vigo Communications (PR Advisor)
Patrick d’Ancona Chris McMahon
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+44 (0) 20 7390 0230 |
| Cenkos Securities (Nominated Adviser)
Ben Jeynes Katy Birkin
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+44 (0) 20 7397 8900 |
| Shore Capital (Corporate Broker)
Jerry Keen |
+44 (0) 20 7408 4090 |
Link to the full announcement and statements here.
Power Metal Resources #POW – Kisinka Project Update & Grant of Production Licence. Prominent Magnetic Highs Identified, Drilling to be Undertaken Following IP Survey Completion
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company announces an update in respect of its 70% owned Kisinka Copper-Cobalt Project (“Kisinka” or the “Project”).
The Project is located roughly 30km east of the regional capital of Lubumbashi in the southern part of the Katangan Copperbelt within the Democratic Republic of the Congo (“DRC”).
HIGHLIGHTS:
Licensing
· The Company has today been notified of the successful conversion of its Permis de Recherches (exploration licence) to a Permis d’Exploitation (25 years Production Licence) over 61 carrés (each of 84.95 ha).
Exploration Update
· On 20 November 2020 the Company announced assay results confirming high copper and cobalt values from pitting and mapping exploration programme completed earlier in 2020 (and following on from a termite mound sampling program conducted in 2019 which successfully identified a roughly 6.8km long copper and cobalt anomaly).
· The Company recently completed a high-resolution 276 line-kilometre ground-based magnetic survey (125 metre spacing) under the supervision of Minerals Exploration SARL (“Minex Consulting SA”). The results from this survey have now been compiled and interpreted by Ronacher Mackenzie Geoscience out of Ontario, Canada.
· The results from this survey highlight a prominent magnetic high anomaly coincident with a regionally important northwest trending diamictite unit. A northwest trending hematitic iron formation unit was also defined within the survey results as a linear magnetic feature, which is broadly coincident with elevated copper and cobalt geochemical results. This geological model possesses many similarities to other Sediment-Hosted Copper Deposits found within the prolific Congolese Copperbelt (“CCB”).
· Two additional northwest trending magnetic high features were also identified within the southern portion of the surveyed area which hare also associated with a diamictite unit. The relationship of these geological units with robust copper-in-soil anomalies identified on the Property are possibly indicative of a redox boundary common within Kupferschiefer copper deposit types (e.g. Kamoa-Kakula Deposit, DRC).
· A next phase of exploration including an induced polarization (“IP”) survey is planned which will provide coverage over several of the new magnetic anomalies recently identified with the objective of identifying possible supergene and/or disseminated copper-cobalt mineralisation.
· Following completion of the IP survey, the Company intends to follow up with an immediate drilling program. Quotations for the next phase of work are currently being sought.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“The news of the grant of a Production Licence over Kisinka is an important step forward and lends considerable support for the continuation of our work on the Project.
Our exploration work at Kisinka since 2019 has been carried out in a systematic and disciplined manner with increasingly promising copper and cobalt results, and we look forward to the upcoming drill programme.
The size of the mineralised area identified by the work to date makes Kisinka an important potential copper-cobalt project in the Company’s base metal portfolio, in what we believe is one of the world’s best copper-cobalt districts.”
Glossary:
Diamictite – A tyle of lithified sedimentary rock that consists of unsorted to poorly sorted sediment with particle sizes ranging from clay to boulders suspended in a matrix of mudstone or sandstone.
Hematitic iron formation – A sedimentary rock formation (often banded) that is dominated by the mineral hematite (Fe2O3).
Copper-in-soil anomaly – Geochemical anomaly defined by increased copper levels over background.
Kupferschiefer copper deposits – A type of sedimentary hosted copper deposit that were originally discovered in central Europe. They are a globally important source of copper and their mineralization is dominated by chalcocite (Cu2S), chalcopyrite (CuFeS2) and bornite (Cu5FeS4).
Supergene – Zone of secondary mineral enrichment (e.g. Copper) that occurs near the earth’s surface.
The technical and related information in this report relates to exploration results based on information from third parties and data compiled by Kazadi S-B. Barry (MSc), Pr.Sc.Nat., MGSSA., Mr Steffen Kalbskopf, (BSc), Pr.Sci.Nat., who are members of the South African Council for Natural Scientific Professions, and Ms Jenna McKenzie, (BSc Hons), P.Geo. and Ms Elisabeth Ronacher, PhD, P.Geo. MM. Messrs Kazadi and Kalbskopf have sufficient experience in the style of mineralisation and type of deposit under consideration. Mr. Kazadi and Kalbskopf consent to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Mr Kazadi is a Managing Director of Mineral Exploration Associates SARL, consultants (under the name Minex Consulting) to the Company.
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration
Kavango Resources #KAV – KSZ TDEM Update and Warrant Exercise
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce an update on its Kalahari Suture Zone (“KSZ”) project, receipt of £59,500 in warrant exercises and completion of the strategic partnership with Spectral Geophysics (“Spectral”) (announced 20 April 2021).
KSZ Update
Further to the announcement on 20 April 2021, Spectral has completed a third Time Domain Electromagnetic (“TDEM”) survey in Target Area A (“Survey A3”). This survey was designed to corroborate the existence of the large-scale conductive anomaly previously identified. Spectral also deployed an upgraded configuration of its equipment, which has proved to be successful.
TDEM surveys can be used to identify super electromagnetic (“EM”) conductors at depth, within highly complex geological environments such as the KSZ. Spectral Geophysics is a highly experienced and effective operator of TDEM technology currently being employed on the project.
Data from Survey A3 has now been successfully processed and interpreted. The data further confirms the existence of the previously identified conductive anomaly and that it has a conductance of ~3000 Siemens. Kavango now estimates the anomaly’s properties are:
- 1km length, which is open along strike
- Extends between 250m to 700m below surface and is gently dipping
- Decay constant of approximately 340msec and conductance of approximately 3000 Siemens, readings which Kavango management considers are consistent with nickel sulphide deposits elsewhere in the world
- Located in the right geological setting, at the bottom of a “keel” in the gabbroic intrusion, according to the Company’s Magnetic 3D-Model (8 September 2020)
As the results come in from Kavango’s extensive TDEM surveying programme and are processed and interpreted, the Company expects to start planning a drilling programme. The exact timing and extent of such a programme remains to be determined, but it is currently considered likely that it will include drilling inclined holes of up to 450m through the conductive target at A2 that will aim to intercept the conductor at roughly 400m.
Kavango has prepared an explanatory video, which presents the geophysical model of the conductive target at A2, for shareholders to view on the Company’s website. The video is accessible via the link below:
https://cdn.kavangoresources.com/VNS-KAV_TDEM_conductor_Pt2_V03.mp4
On completion of Survey A3, Spectral immediately deployed its team and equipment to Target Area B1, which Kavango’s field exploration team had prepared in advance. This survey is now nearing completion and Kavango expects to receive data later this week, for processing, interpretation and review.
Spectral will then move straight onto Target Area B2, which the Company has begun preparing the site for.
Kavango anticipates the remaining TDEM surveys in this current phase of exploration will continue at this accelerated pace.
Completion of Spectral Geophysics Strategic Partnership
Following the success of the first TDEM surveys in the KSZ, Spectral and Kavango entered into a strategic partnership in April 2021, to leverage each other’s expertise to identify high-priority drill targets.
As part of this deal, Kavango agreed to issue Spectral with 3,000,000 ordinary shares of £0.001 at an issue price of 3p pence per share (the “Partnership Shares”). The Partnership Shares are subject to a 12-month lock-in and will be held in custody by the Company’s broker, First Equity. The Company allotted the Partnership Shares on 30 April 2021, subject only to their admission to the Standard List segment of the Official List and to trading on the main market of the London Stock Exchange plc (“Admission”).
Exercise of Warrants
Kavango announces it has received notices to exercise warrants over 5,950,000 new ordinary shares of £0.001 each in the Company (the “Warrant Shares”).
The Warrant Shares are being issued pursuant to the exercise of warrants granted and announced on 15 April 2020. Subscription monies of £ 59,500 have been received by Kavango in respect of these exercises.
Admission and Total Voting Rights
Application has been made for Admission of the Warrant Shares and Partnership Shares. It is expected that Admission will become effective and that dealings in the Warrant Shares and Partnership Shares will commence at 8.00am on or around 11 May 2021.
Following Admission, the total issued share capital of the Company will consist of 351,352,139 Ordinary Shares. Therefore, the total number of voting rights in the Company is 351,352,139 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest, in the share capital of the Company.
Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Michael Foster
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
Nick Emerson
Note to Editors:
THE KALAHARI SUTURE ZONE
Kavango’s 100% subsidiary in Botswana, Kavango Minerals (Pty) Ltd, is the holder of 14 prospecting licences covering 7,573.1km2 of ground, including 12 licences over a significant portion of the 450km long KSZ magnetic anomaly in the southwest of the country along which Kavango is exploring for Copper-Nickel-PGM rich sulphide ore bodies. This large area, which is entirely covered by Cretaceous and post-Cretaceous Kalahari Sediments, has not previously been explored using modern techniques.
The area covered by Kavango’s KSZ licences displays a geological setting with distinct similarities to that hosting World Class magmatic sulphide deposits such as those at Norilsk (Siberia) and Voisey’s Bay (Canada).
The Norilsk mining centre is about 2,800km northeast of Moscow and accounts for 90% of Russia’s nickel reserves, 55% of its copper and virtually all of its PGMs. Kavango’s licenses in the KSZ display a geological setting with distinct geological similarities to the magmatic sulphide deposits at Norilsk. Magma plumbing systems are a key feature of these deposits.
KSZ DEFINITIONS
Super EM Conductors: are bodies of highly conductive minerals such as metal sulphides, which conduct electricity very rapidly provided the mineral grains are in contact with each other.
Gabbro/gabbroic: A coarse grained, medium to dark coloured rock, formed from the intrusion of mantle derived molten magma into the earth’s crust. Gabbroic rocks (or “gabbros”) are formed as the molten magma crystallizes and cools.
Gabbroic sills: Relatively thin, planar, (originally) horizontal bodies of solidified gabbroic magma that intruded into the Earth’s crust while still molten.
Karoo: The Karoo System covers 1.5 million km2 of the semi-desert region of Southern Africa. Rocks in this system formed 180-310 million years ago.
Massive sulphide: When a deposit consists almost entirely of sulphides it is termed “massive”. When it consists of grains or crystals of sulphide in a matrix of silicate minerals, it is termed “disseminated”.
Metal/Magmatic sulphide: Deposits of sulphide mineral concentrations in mafic and ultramafic rocks, derived from immiscible sulphide liquids. To view a video of how metal/magmatic sulphides form please visit –
https://twitter.com/KavangoRes/status/1316004057895645186?s=20
Mosman Oil & Gas #MSMN – EP 145 Update
Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development and production company, advises an update in respect to EP 145 in the Amadeus Basin in the Northern Territory of Australia (“NT”).
As previously advised, Mosman is now operating in two distinct divisions. Dr Julie Daws, in consultation with the Technical Director, Mr. Andy Carroll, is managing Mosman’s exploration work in Australia, specifically EP 145 airborne gravity and seismic acquisition. Bids have now been received for the airborne gravity data acquisition and are currently being evaluated. As there are not currently any Covid-19 restrictions in the Northern Territory where EP145 is located, and no ground access is required, this survey is able to proceed in the near future once a contractor is selected and equipment is available.
Planning for the seismic acquisition is ongoing. Mr. Andy Carroll and Dr Julie Daws met with the Aboriginal Areas Protection Authority (“APAA”) and the Central Land Council (“CLC”) in Alice Springs to discuss the current work programme. An AAPA Sacred Site Clearance Certificate is required to ensure no damage to sacred sites, and this has been received.
Other requirements prior to the seismic acquisition include the CLC requirement for a heritage survey (needed prior to ground access), where Mosman is awaiting clarity from CLC on timing and also the requirement for an on-ground environmental survey and Environmental Management Plan before the crews can access the area to acquire the seismic data. Given delays related to Covid-19, Mosman no longer considers it feasible to obtain and process the seismic data under the original EP 145 permit seismic schedule of August 2021, and Mosman has applied to the NT Government for an extension.
The subsalt play is a focus of exploration across the Amadeus Basin, including Mosman operated EP145. Two wells in the Amadeus Basin, Magee-1 in EP38 (Pacific O&G, 1992) and Mt Kitty-1 in EP125 (Santos, 2014), encountered hydrocarbons with up to 9% helium within this interval and other significant structures have been identified including Dukas-1 in EP112 (Santos, 2019) and the Zevon lead in EP115 (Central Petroleum) which is located close to EP145.
In addition to the subsalt prospectivity, EP145 contains the West Walker-1 gas discovery which lies on trend with the Mereenie oil and gas field which produces from the Ordovician Pacoota Sandstone unit and the Palm Valley gas field that have both been under production for over 30 years.
Two wells have been drilled in EP145, the first West Walker -1 (1982) tested the western end of an anticlinal feature and flowed wet gas to surface at a rate of 3.5MMscf/d from the Pacoota Sandstone, also the main producing reservoir in the Mereenie Field. A follow up well drilled, called Tent Hill -1 (1984), located to the southeast on the same anticline was deemed unsuccessful, although oil was observed weeping from cores.
As previously announced, independent resource estimates by SRK (2016) support prospective resources of 22Bcf in the Pacoota Sandstone play and additional unconventional prospective resources of 1,456Bcf in the Horn Valley Siltstone (SRK report 2016, P50 gross unrisked) on EP145.
Mr. Andy Carroll and Dr Julie Daws attended the Annual Geoscience Exploration Seminar 2021 Conference in Alice Springs on 19-20 April. The presentations included Federal and State Minister speeches with government supporting investment in exploration and infrastructure. Part of the State $9 million per annum pledge of support includes a 50% grant for geophysical work (up to $100,000 per survey) and Mosman has applied for this grant.
There was also a presentation of the SEEBASE basement map for the whole of N Northern Territory, which will help Mosman integrate the local data obtained in EP 145 with regional geophysical data.
Further details of timing will be provided once known.
Qualified Person’s Statement
The information contained in this announcement has been reviewed and approved by Andy Carroll, Technical Director for Mosman, who has over 35 years of relevant experience in the oil industry. Mr. Carroll is a member of the Society of Petroleum Engineers.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Enquiries:
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Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director |
NOMAD and Broker SP Angel Corporate Finance LLP Stuart Gledhill / Richard Hail / Adam Cowl +44 (0) 20 3470 0470 |
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Alma PR Justine James +44 (0) 20 3405 0205 +44 (0) 7525 324431 |
Joint Broker Monecor (London) Ltd trading as ETX Capital Thomas Smith 020 7392 1432 |
Updates on the Company’s activities are regularly posted on its website:
Power Metal (POW) – New Incubator Subsidiary, Power Capital Investments Ltd
New Resource Project Incubator Subsidiary
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce it has established a new 100% owned and subsidiary ‘incubator’ business: Power Capital Investments Ltd (“Power Capital”). Power Capital will initially be fully funded by Power Metal.
Power Capital will actively identify small, entrepreneurial business ventures with significant growth potential in the junior resource space and provide support with regard to business management, project development and corporate development to enable them to scale rapidly and realise their potential. Power Capital may also provide financial support.
Power Capital will look to develop these fledgling, high-potential early stage ventures, to the point of sale, public listing, or incorporation into the Company’s portfolio, dependent on a set of key performance indicators to be established.
As a major shareholder in each selected business, Power Capital, and thereby Power Metal, has the opportunity for significant capital appreciation from each successful venture together with a self-created pipeline of new resource projects for operational development by Power Metal.
Power Capital is the next step in Power Metal’s quest to build a strong, diversified and successful company and to create significant value for its shareholders.
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
“We are delighted to announce the establishment of a new ‘incubator’ subsidiary business, Power Capital Investments Ltd.
We are aware that across the globe, there are numerous opportunities with huge potential for discovery that can struggle to get past the initial phase of conception, due to a combination of funding restrictions and lack of managerial resources to apply to corporate development. Power Capital provides our highly experienced team at Power Metal the chance to access, screen, and select only the very best of these opportunities, and to nurture the growth of these fledgling companies in exchange for equity.
It is expected that over time, Power Capital will further strengthen Power Metal’s portfolio of projects and create further value for our shareholders, as successful ventures are either incorporated into our portfolio, sold, or listed publicly.”
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:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Alan Green discusses Union Jack Oil #UJO & Power Metal Resources #POW on his weekly Stockbox Media Research talk
Alan Green discusses Union Jack Oil #UJO & Power Metal Resources #POW on his weekly Stockbox Media Research talk
Blencowe Resources Plc (BRES) – Stage Two Drilling Program Commences
Stage Two Drilling Program Commences at Orom-Cross Graphite Project
Highlights:
- Stage Two 2,200m (74 holes) diamond drilling program underway in Uganda.
- Designed to define a +10Mt TGC Measured and Indicated Resource from existing 16.3Mt.
- Fully funded through existing cash resources.
- Previously drilled high grade zones in Northern Syncline and Camp Lode to be included in new upgraded resource.
- Additional in-fill drilling to provide basis for mine planning, delivery of geotechnical and other information, for inclusion in Pre-Feasibility Study (PFS).
Blencowe Resources Plc (“Blencowe Resources” or the “Company”) (LSE: BRES) is pleased to announce the commencement of the Stage Two drilling program at Orom-Cross, designed to in-fill the recently announced JORC Resource and upgrade substantial tonnes into the Indicated and Measured categories. This additional program will progress Orom-Cross along its development path towards first production, and will be executed using the Company’s in-country technical partners, ADT Drilling and Minrom Consulting. Additional resources will also be targeted in the current programme, with drilling also focusing on proven high grade areas, as yet not included in the maiden JORC Resource.
On 13 April 2021, Blencowe announced its maiden JORC Resource estimate for Orom-Cross, less than one year after acquiring the Project. The commencement of Stage Two, so soon after the highly successful maiden drilling programme, underlines the Company’s focus to add significant value efficiently and cost-effectively within this development phase. The drilling campaign will progress in parallel with the ongoing metallurgical test work, with leading graphite expert SGS Lakeside in Toronto/Canada, the results of which are expected later this quarter. The drilling program will take approximately 2-3 months to complete, with a similar amount of time thereafter to prepare samples, complete all assaying and provide a JORC Resource update. The Company will provide updates during the drilling campaign as appropriate.
The maiden JORC Resource delineated a 16.3Mt TGC resource at Orom-Cross, almost twice the size as the originally targeted. This next phase of development will bring the drill spacing closer together to ensure continuity of both product and grade, as required for mine planning within the PFS that will follow.
The Stage One drilling program also located higher grade graphite in the Camp Lode, which was only partially explored. Stage Two will therefore also target parts of the Camp Lode to bring it into the overall JORC Resource for the first time, which is likely to have a material positive impact on both grade and tonnes.
Cameron Pearce, Executive Chairman commented;
“I am delighted to announce the commencement of our fully funded Stage 2 drilling program, which we expect will add further material value to the Orom-Cross graphite project in Uganda. We are moving quickly towards the feasibility studies phase and this current drill program is designed not only to expand the resource’s size, grade and classification, but also ensure that all necessary geological and mining information required for those studies is subsequently available. We have already come a long way in a short period of time at Orom-Cross. We look forward to the results of this next phase of drilling and the results of the ongoing metallurgical studies with great optimism.
“We remain firm believers that the battery metals market is only just beginning its massive growth cycle over the next decade. We believe this once-in-a-generation transformation will continue to expand exponentially into the future. Benchmark Minerals Intelligence recently announced that over two hundred lithium-ion battery Megafactories are now in the pipeline worldwide, a significant growth from just seventy factories three years ago. These represent millions of tonnes of future graphite demand in the years ahead and support the positive outlook for the graphite market.
Accordingly, we are resolute in our position that Orom-Cross offers significant value and the ability to play a substantial role in helping to ease the significant forecast deficit of graphite in the future. We have already been issued a 21-year mining license at Orom-Cross, which not only considerably de-risks our work ahead, but also should help the Company advance the asset into production in an expeditious manner.
I look forward to updating the market on the results of the metallurgical test work later this quarter.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn
Investor Relations Sasha Sethi |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250 info@lionsheadconsultants.com
Tel: +44 (0)7891 677 441
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Brandon Hill Capital Limited Jonathan Evans |
Tel: +44 (0)20 3463 5000 jonathan.evans@brandonhillcapital.com
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First Equity Limited Tel: +44(0)20 7330 1883
Jason Robertson jasonrobertson@firstequitylimited.com
Background
Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of larger flakes identified from previous work performed. A 21-year Mining Licence was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.
Orom-Cross presents as a large, shallow open pitable deposit, with an estimated resource in excess of 3 billion tonnes of graphite. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.
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