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Alan Green talks markets, Eddie Stobart #ESL, Arkle Resources #ARK & BrandShield #BRSD on the UK Investor Magazine podcast

Are stock markets correctly pricing COVID-19 economic devastation?

Alan Green joins the UK Investor Magazine Podcast shortly after news the Pfizer vaccine will be rolled out in the UK over the next week. Market reaction was muted and we explore whether stocks have already priced in all the good news related to the economic reopening. We also discuss Arkle Resources (LON:ARK), Brand Shield (LON:BRSD) and Eddie Stobart (LON:ESL)

Blencowe Resources #BRES – Orom Cross Graphite Project video clip

Power Metal Resources #POW – Company Q&A

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide the questions and answers to a number of investor queries received recently by the Company. Where possible the question below is that presented to us, however where multiple questions involve similar themes, we have consolidated into a single question to avoid duplication.

Power Metal also notes that investors wishing to understand the current position of the Company may refer to the recently uploaded Investor Presentation which is available on the Company’s website and may be viewed through the following link:

https://www.powermetalresources.com/p/193/presentations

COMPANY Q & A

Power Metal Resources has received numerous investor queries recently and we are pleased with the increasing interest shown in our activities.  Where possible questions have been grouped into categories as outlined below.

Project Operations – Exploration and Corporate Activities

QUESTION

RESPONSE

Botswana – Molopo Farms Complex

 

Regarding drill #1 – why was the drill stopped when the anomaly identified via geophysics indicated an anomaly stronger with depth? 

 

The hole was angled at 60 degrees and was over 500m in length and passed between harder and softer rock as it descended.

The possibility of some deviation as we drilled makes it possible that we have missed by a few metres a steeply dipping target identified by geophysics.

The mudstones encountered could be generating a conductive anomaly but are likely to cover a greater areal extent as they are a known horizon in the Molopo Farms Complex of rocks, so this would be inconsistent with the areally restricted conductive anomaly identified from our geophysical work.

One possibility is that the geophysics took a gently dipping anomaly and a steeply dipping anomaly, the latter being our target, and modelled the two as being one.

It was more logical given the above to stop the hole at the target depth and move on to drill the next hole while analysing the core and doing down-hole geophysics.  If we had carried on drilling, we could have possibly drilled right past our target.

With the downhole geophysics we can look around and below the hole for 300m in each direction and so get a more accurate 3-D geophysical model and interpret the dip and orientation of the strata encountered in the drill core.

Unless results do not justify it, we will return to the hole and if necessary, deviate from it or drill deeper to test the assumed target.  

 

Botswana – Molopo Farms Complex

Is the geological model for the Molopo Farm Complex looking for geology similar to the Bushveld Igneous Complex, the Great Dyke in Zimbabwe or some other large ultramafic complexes?

 

 

Each ultramafic complex has its own characteristics depending on the conditions that produced it. We are drilling a satellite ultramafic intrusive which is part of, and of similar age to, the Large Bushveld Igneous Province, as described on this page of the KKME website: https://www.kalaharikey.co.uk/mopo-farms-project/geology-of-the-molopo-farms-complex/ .

Australia – Victoria Goldfields

What is the status of the Australia gold JV and will shareholders receive a distribution from Power Metal if the Australian Joint Venture Company is listed on a North American stock exchange?

 

 

 

We have various work streams underway in respect of the Australia gold joint venture and it is a very proactive period for this important part of the Power Metal business.

 

Our immediate focus is the advancement of the technical project information and exploration planning in preparation for the launch of efficient and targeted ground exploration which can only commence on the grant of licence applications.

 

In parallel we continue to work on the potential listing of some or all of the interests on a North American stock exchange as announced to shareholders.

 

In all discussions our focus is rapid advancement of exploration and significant commitment by any potential partners to ground exploration where we believe considerable value can be added through proactive implementation of exploration programmes.

 

The potential listing could generate an asset of considerable value given the strategic nature of the ground under application in Victoria.  That valuation would increase, perhaps significantly, with the grant of licences and the ability to launch ground exploration to validate our geological propositions. There is clear evidence of significant gold mineralisation across the licence application footprint.

 

The question of whether we would specifically seek to distribute any listed activity gains from the Australia JV, or indeed from any other corporate transaction undertaken by Power Metal or its partners, is a little early to definitively answer at this stage.

 

It is fair to say that we are attracted to the distribution model, which allows shareholders to see a return from their investment in Power Metal in addition to the appreciation in Power Metal share value that commercialisation of our interests could provide.

 

There are many elements to consider in this including what is best to advance the projects, the approach of any partners to transactional structuring, positioning Power Metal to enable distributions and considering the taxation elements to seek distribution efficiency from a tax planning perspective.

 

There are many work streams to complete if Power Metal were to consider distributions, but they can be run concurrently, and they could include seeking the approval of shareholders at a General Meeting.

 

 

Australia – Victoria Goldfields

How does Power Metal value its interests in the Australian Joint Venture Company and particularly its licences?

 

 

 

This is a complicated exercise as valuation depends on many factors including inherent geological and commercial potential, market conditions, granted or application status, historic and future spend and perhaps significantly the strategic significance of the JV interests.

 

We are developing valuation metrics, however for a real sense of valuation in the current market we can only look at recent transactions for similar interests and gain a feel for what might be achievable.

 

As stated previously a major factor for us is the commitment to significant ground exploration and financial investment to support that exploration work. We believe that proactive exploration stands a very good chance of identifying gold mineralisation and that will be a major uplift to any project valuation.

 

As you can see we are working with so many variables, but we know that having identified and built such an important and strategic land package in Victoria, we now have a duty to manage this professionally and seek the highest returns reasonably achievable from this unique opportunity.

 

Australia – Victoria Goldfields

Will Power Metal be seeking an income stream from any commercial transactions in respect of the Australian interests?

 

 

 

The main objective is the pursuit of exploration and corporate transactions that will maximise the capital return from the opportunity.  Income wise, we will likely focus on royalty income streams from interests as and when we involve third parties in a project or projects.

 

Australia – Victoria Goldfields

There is a lot of interest being shown in Victoria gold projects including ECR Minerals plc one of your neighbours.  Is this something you are also experiencing for the gold JV in Victoria?

 

 

 

It is increasingly clear that the Victoria Goldfields is a particularly attractive destination for gold exploration. 

 

The strategic nature of our Australia gold JV, with the size of land package assembled and the extent of prospectivity that’s evident from our published technical work, means that there will be interest and we have stated this previously.

 

Australia – Victoria Goldfields

Are there plans to re-process mine dumps in the Victoria Gold Fields in Australia once appropriate licences are granted?

 

 

This is not something we have looked at so far, but as licenses are granted, we will investigate the evidence at surface where there has been previous mining activity, which may include small gold-bearing dumps or tailings.

USA – Alamo Gold Project

Do you expect to be able to mine nuggets of gold from near the surface at the Alamo gold project in Arizona?

 

As announced by the Company via RNS on 20 November 2020, the plan is to undertake mini-bulk sampling alongside other exploration techniques in December 2020.  That should tell us more about project mineralisation including the prospectivity for gold nuggets near surface.

We are also looking at the potential for other mineralisation and the potential bedrock source of the gold mineralisation that, as we have clearly established to date, exists near-surface.  The latter was also demonstrated during our January 2020 due diligence field trip where we identified gold nuggets during the digging and metal detecting of shallow pits at the project.

This is early stage exploration and the prospect of mining, although ultimately our principal objective, is something we must build towards with exploration.  If successful, that exploration will confirm gold mineralisation of a magnitude to support permit applications and associated studies that would be the precursor steps to the launch of mining operations.

 

Tanzania – Haneti Project

You have announced that mobilisation is underway but when will drilling actually commence at the first drill location?

 

Power Metal has a communications approach that articulates through regulatory news announcements the status and progress on all of our material project interests.  This includes Haneti which is a very material opportunity for the Company.

Power Metal, with our partners Katoro Gold plc have announced pre-mobilisation, mobilisation of drilling and intend to announce an update on full drill commencement as appropriate, including if possible images on our website photo gallery showing the drill in action at the drill location.

 

Tanzania – Haneti Project

Why has Haneti not been drilled before if it is such an important strategic opportunity?

 

On a general level the junior resource sector has been experiencing challenging conditions for some time and in many cases, there has not been the financial capital around to pursue project acquisitions or impactful exploration activities.

Many great discoveries have, in our view, been made in scenarios where projects have not been able to attract sufficient project capital to enable progression of exploration.

Haneti is however a project that has received exploration capital over many years and has built to a position where the next stage is drilling.

Importantly Haneti now has two public companies working together to operate and finance drilling. 

Given the level of interest shown in the project, and in nickel sulphide exploration opportunities generally, it makes commercial sense all round to crack on with drill programmes which is what is happening at Haneti.

 

Canada – Silver Peak

When do you expect to receive assay results from the work undertaken recently?

 

As with all our projects we push for the receipt of assay data as soon as possible.  With the Covid-19 restrictions around the world in 2020 the Company has not been in a position to accurately confirm timescales around the receipt of assay data from third parties. As soon as assay results are received and interpreted by the Company, an announcement will be made to shareholders.

 

Canada – Silver Peak

Given we are now in winter season, how do you expect to take Silver Peak project forward?

 

We generated highly positive exploration findings from the summer due diligence sampling work including bonanza grade silver and significant copper and lead.  We await the assays from limited follow up drilling and sampling we were able to undertake in the short programme that we recently announced was curtailed by poor weather conditions.

Using the above and the historic exploration data available to us, we will, with our partners, determine the next exploration and corporate steps for the Silver Peak project.

We believe the Silver Peak project has great potential and now must identify the appropriate pathways for its development.

 

Canada – Silver Peak

Were you disappointed with the weather disruption at Silver Peak and what can you do to get the project back on track?

 

Absolutely. Power Metal is keen to push each project as hard as possible and we put a lot of work into drill programme design and implementation.  The weather hit us twice with storms damaging access and meaning our original programme with a larger rig could not go ahead.  Then the snow brought our man-portable rig operation to an abrupt and early conclusion.

We believe shareholders prefer a proactive approach to exploration and clearly, we pushed hard to get the Silver Peak drilling done whilst ensuring safety of operations at the site in the more challenging conditions.

 

DRC – Kisinka

Is it possible to extract value from the Kisinka project in the DRC and are you not concerned that money invested may be locked in?

 

We have operations around the globe in different jurisdictions and the DRC is one country that we believe investors perhaps do not fully understand or appreciate.  We think that will change.

The Company’s experience to date has been very positive however and suggests to us that there is real value to be created in the DRC, not least because of the immense metal prospectivity across the country.

Power Metal is pursuing a potential new copper-cobalt district at Kisinka which is situated near to Lubumbashi in the south-east of the country.

The quality of technical reports that we receive from operations at Kisinka is extremely good demonstrating the professionalism of our partners. 

Also, based on our experience the ability to secure licences and permits for operations is in many respects more straightforward than many jurisdictions where the process is more complex and takes longer.

Added to all this there are many international companies that are operating producing mines in the DRC including Ivanhoe’s Kamoa-Kakula under development now and which is expected to become one of the largest global producing mines.

 

DRC – Kisinka

When do you expect to complete the geophysics and start drilling?

 

The high-grade copper and cobalt from assays recently announced means that Kisinka is a key project interest and we are looking to commence follow on exploration as soon as possible. 

As announced 20 November 2020 the Company is working on setting up a ground magnetic survey and a ground electromagnetic survey, to detect both low magnetic and chargeable lithologies and indicate structures and faulting and areas of carbonate rocks, in order to generate precise drill targets with our in-country partners. 

The Company will make a further announcements to the market as appropriate in respect of the proposed programme at Kisinka.

 

Botswana – Kavango Resources JV

When will we hear more about the exploration work from the Kalahari Copper Belt?

 

As announced in the Company’s ‘Project Portfolio Update’ on 5 October 2020 the Company is awaiting the results of a soil sampling programme.  An update on that programme, its findings and the next steps will be released to the market once results have been received and interpreted.

 

Botswana – Kavango Resources JV

Have you refined your plans for a listing of the JV on a Canadian or UK stock exchange?

 

Plans remain on track and we have been putting in place the steps to achieve our listing objective.

We will provide an update on this to the market as appropriate.

 

General – Project Valuations

Do you have anything you could provide to investors with valuation indications on the projects, such as project NPVs?

 

We have a portfolio of early stage project interests, albeit some are in a more advanced stage with drill programmes running.  It is more difficult to ascribe valuations to earlier stage projects.

A similar situation exists on discovery, where the full extent of a project’s valuation will only be developed as projects are progressed and more is understood about the scale and type of mineralisation.

To a certain extent the involvement of third parties on project earn-in or joint ventures can assist with an assessment of likely value also.

In addition, project spinouts especially involving compensation in marketable assets such as listed equity will also help the developing value assessment.

As soon as we can start to attribute specific values to project interests and investments we will seek to do so.

 

General – New Opportunities

Are you still looking for new opportunities and are you limited in the regions you would operate in and the commodities you would explore for?

 

The Company actively assesses any new opportunities it is presented with although it has to be said we have already noted a rise in vendor expectations regarding project valuations. 

We are of the belief that we would not have been able to assemble our current portfolio of projects on the same terms today given the stronger natural resources environment.

We were given a tremendous opportunity by the difficult market conditions of 2019/2020 and now shareholders have the advantage of a portfolio constructed in challenging markets, as those same markets move into what we believe will be a stronger phase.

We want to develop the Company around clear themes, demonstrating consistency and clear strategic rationale.  Therefore, we think it’s wise to follow the overall business structure of precious metals in North America and Australia and base metals in Africa. 

 

 

Business Management

QUESTION

RESPONSE

How is the Company able to manage 9 projects and commit adequate management time to each?

 

Whilst the management of a number of projects is a challenge, the Company ensures that it is adequate staff and management time available for each project as appropriate. The Company is also enhancing management oversight to ensure regular engagement of London plc with the project management and operational teams running each of our interests.

 

We also have support with back office including financial accounting and compliance through an external provider.  In addition, we have assistance to manage and coordinate our extensive external communications.

 

We will bring in further bespoke managerial resources as our business expands and our working capital grows. 

 

 

Should Power Metal spin out interests will there be a continuing involvement in management and if so how will that be possible given the management requirements of the core business?

 

It depends on the nature and type of transaction undertaken.  Where needed we will of course apply our management time and other resources to assist. 

 

However, our focus is on ensuring any spin outs or similar are into wrappers or deal structures that come with experienced management able to deal holistically with the commercial challenges without relying too heavily on Power Metal central resources.

 

What measures do you have in place to ensure your management and operations team have due regard for environmental protection and the protection of local communities?

 

This is absolutely vital especially as our business expands its active operations in the field. We already have a keen focus on health and safety, environmental and community protection and that will continue.

 

We seek to follow best practice across the above areas and generally from a corporate governance perspective reflective of the resources available to a smaller company. 

 

To add further weight to this we are currently reviewing a number of trade associations from whom we can secure further support on best practice. 

 

We expect to join trade associations in the near term to further demonstrate our desire to remain proactive in this area.

 

By way of example our Australian JV has just employed a community relations and environment officer as its second employee showing the high priority we give to these matters.

 

 

Financing Strategy

QUESTION

RESPONSE

You have disclosed your working capital position and appear confident you are in a strong financial position, however how reasonable is this given the large spread of projects and work being undertaken on them?

 

The answer revolves around more than just the absolute amount of working capital we hold and also includes how we spend our money, the level of fixed financial commitments and our access to additional working capital sources.  The latter point we deal with in the next question so for now we will focus on the matters of spending and financial commitments.

 

We are quite keen on the control of spending and have our main areas of spend under control.  Much of a junior resource company spend falls into central overhead and exploration spend. When corporately acquisitive, then acquisition costs can also be material.

 

For central overheads the direct costs in relation to the exchange listing and advisors surrounding that are largely fixed and need to be budgeted for. We pay our central costs promptly and carry almost no trade creditors for any material periods.  We have no material debt.

 

Much central cost in junior resource companies relates to director salaries and expenses.  At Power Metal, we believe against our peers in the sector we are modestly paid and have very little outlay for director personal expenses.

 

The aim for us (as holders beneficially interested in approximately 14% of the Company’s issued share capital) is to see money invested in the ground to make exploration and commercial progress including major metal discoveries. 

 

If we do that our shareholdings may rise considerably in value and the financial returns from that would be way more beneficial to directors than excessive board salaries in the early stages of the Company’s development.

 

Turning to exploration spending, for the vast majority of our project spend, our exploration outgoings are flexible and generally entirely at our volition.  This means we can spend if we wish to, but curtail exploration spend across our business if we wish to, for whatever reason.  That spend control is important.

 

Equally for new acquisitions we have always been controlled and not overly exposed ourselves with heavy acquisition terms.  We have used cash as part of acquisition terms but only modestly as cash is king in our sector. 

 

Generally, where possible we have also used our shares for new acquisition vendor payments.  So far that model has worked well to preserve cash and acquire opportunities on reasonable terms (with shared upside for vendors who hold interests in Power Metal stock and benefit as the shares increase in value).

 

Where do you feel most additional working capital will be generated; from financings, warrant exercises or asset disposals?

 

It’s difficult to be precise on future working capital sources but we do have some degree of expectation subject of course to market conditions and buoyancy in the junior resource sector.

 

Power Metal could undertake financings and the Board are confident that money could be raised as required.  This has been amply demonstrated by the £2.7m raised in financings since February 2019 and, save for the initial restructuring in February 2019, Power Metal financings in December 2019 and July 2020 were conducted at the then market price. 

 

Discounted financings are not what Power Metal seeks to undertake as that we consider that potentially damaging for shareholder value and confidence in general.

 

Ideally, we are seeking to build our working capital to become financially self-sustaining.  This would mean that we would not need to undertake financings unless we chose to do so on strong terms or to value-adding institutional investors.

 

Warrant exercises have provided a considerable amount of additional working capital.  The amount raised through warrant exercises since August 2020 has enabled the company to be aggressive with its exploration and corporate plans.  In essence each warrant exercise provides us with funds to accelerate our operational activities.

 

Alongside the above we have a strategic investment portfolio that is growing in value and should that continue, it would provide a source of further working capital should this be needed for operations.

 

The area where we feel considerable working capital could be generated is from spinouts or other similar commercial transactions where we exchange some of our direct ownership of an interest for mainly cash or shares in other entities. 

 

If those entities are liquid listed vehicles, then the effect is to have an asset easily translatable into cash when and if needed to fund our own operations.

 

Can you explain the warrant exercise process, its impact on shareholder dilution and whether there are any restrictions on the warrants?

 

Power Metal receives an exercise form from a warrant holder and checks the validity of this to an underlying warrant register. If acceptable this exercise is reconciled to a receipt of cash into the Company’s bank account.

 

For all valid exercises we secure board approval to issue equity, prepare a market announcement and an AIM admission form for the new equity to be admitted to trading on AIM.

 

The end result is a market announcement confirming the warrant exercises and cash received.

 

The new shares are generated by the registrar and admitted to trading on AIM thereafter. 

 

The warrant exercises increase the issued share capital with such information provided in the requisite market announcement at the time and the increased amount of shares is updated to the Company’s website AIM Rule 26 page on the Investors’ section of the site accordingly.

 

 

Can you provide further information on all outstanding warrants and options to give a better understanding of potential dilution?

 

Details of all warrants issued by the Company can be found in regulatory announcements released by the Company and within the Company’s Financial Report and Accounts.

 

Additionally, the Company will be adding to its new website in due course a full schedule of all financial instruments including all warrants and options held generally by investors and also those held by the board of directors. 

 

This schedule will include all final exercise dates and any special terms including accelerators whereby the company can elect to expedite the use of warrants by holders and if not used, cancel the remainder warrants although, as noted above, all such information can be found within the relevant announcements made by the Company.

 

What amount of revenue do you expect to generate from your projects and how will that revenue be derived?

 

Power Metal is generally seeking capital returns where an increase in the value of projects is secured through exploration or corporate structuring.

 

In some cases that value may be crystallised through a disposal of some or all of a project interest for cash or shares in an acquiring company.

 

In respect of any disposals we are also keen on longer term consideration that could be described as “revenue” including royalties from interests disposed where Power Metal would receive payments should an interest enter production. 

 

Royalties can be a highly valuable source of income or revenue over the longer term so potentially could become a valuable part of our business asset base.

 

In addition, royalty income streams can be sold for material cash sums, providing optionality to Power Metal on how value should be crystallised.

 

When do you anticipate institutional investors will be interested in Power Metal?

 

There are of course institutions of all shapes and sizes, with varying business rationales and many are not suitable partners for our company.

 

We are open to reputable and recognised institutional investment but are also comfortable without it. 

 

Well regarded institutional finance can increase investor confidence in Power Metal, however we are well funded presently and are entirely comfortable with our access to future working capital as outlined in some detail above.

 

 

 

Marketing and Communications

QUESTION

RESPONSE

Can you produce company level and project specific factsheets to help investors understand the business and its constituent elements?

 

The Company intends to undertake this exercise once the website update has been completed.  

Will you be having updated analyst reports prepared for Power Metal?

 

Yes, we expect our brokers will provide updated research to the market as they deem appropriate.

 

 

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 (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 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.

Blencowe Resources #BRES – Block Listing Application Update

The Company provides notification that the block listing application for 7,500,000  ordinary shares of 0.5 pence each (“Block Listing Shares”) pursuant to the exercise of outstanding warrants will not proceed due to low levels of exercises to date. The Company may review an application in the future subject to levels of exercise notices.

Therefore, the exercise of warrants will be subject to individual applications for each new issue of equity rather than through a block listing as originally envisaged. The Company will announce the exercise of warrants and related application for new equity upon receipt of any such notices from holders of warrants. 

For further information please contact:

Blencowe Resources Plc

Sam Quinn (London Director)

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

Brandon Hill Capital Limited

Jonathan Evans (Corporate Finance)

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.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.

ECR Minerals #ECR – Block Listing Application

ECR Minerals plc (LON: ECR), the gold exploration and development company focussed on Australia, announces that an application has been made to the London Stock Exchange for a block listing of securities in respect of 32,142,862 ordinary shares of £0.00001 each (the ‘New Ordinary Shares’) to be admitted to trading on AIM.

The New Ordinary Shares will be issued from time to time in order to satisfy certain warrants which may be exercised. It is expected that admission will become effective on 4 December 2020.

The block listings consist of 32,142,862 ordinary shares in respect of the 17 December 2018 warrants which are exercisable at any time until 21 December 2020 at a price of 1.125p per share the “December 2018 Subscription Warrants Scheme”

For the avoidance of doubt these applications are not applications to list the warrants themselves on any regulated market but merely an administrative measure to ensure that the Company does not need to make multiple applications for admission of ordinary shares to trading on each separate occasion when the existing warrants are exercised by holders. The warrants remain in uncertificated form and there are no changes to the terms and conditions of the warrants.

The Company will make six-monthly announcements of the utilisation of the Block Admission, in line with its obligations under AIM Rule 29.

When issued, the New Ordinary Shares will be credited as fully paid and will rank pari passu in all respects with the existing ordinary shares of £0.00001 each in the capital of the Company (‘Ordinary Shares’).

FOR FURTHER INFORMATION, PLEASE CONTACT:

ECR Minerals plc

Tel: +44 (0)20 7929 1010

David Tang, Non-Executive Chairman

Craig Brown, Director & CEO

Email:

info@ecrminerals.com

Website: www.ecrminerals.com

WH Ireland Ltd

Tel: +44 (0)161 832 2174

Nominated Adviser

Katy Mitchell/James Sinclair-Ford

SI Capital Ltd

Tel: +44 (0)1483 413500

Broker

Nick Emerson

ABOUT ECR MINERALS PLC

ECR is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia.

Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX), ECR has the right to receive up to A$2 million in payments subject to future resource estimation or production at those projects.

ECR has earned a 25% interest in the Danglay gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, and holds a royalty on the SLM gold project in La Rioja Province, Argentina.

Power Metal Resources #POW – Total Voting Rights

In accordance with the Financial Conduct Authority’s Disclosure and Transparency Rules, the Company hereby announces that as at today’s date it has 867,859,942  ordinary shares of 0.1 pence each in issue, none of which are held in treasury. Therefore, the total number of voting rights in the Company is 867,859,942 .

The above figure of 867,859,942  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 under the FCA’s Disclosure and Transparency Rules.

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 (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 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.

Mining Global Magazine – Brazil’s Vale to avoid driving down global iron ore market

CFO states that miner will place caution before capacity as it looks to press forward with its recovery from deadly 2019 dam catastrophe.

Brazilian miner Vale SA will place caution before capacity as it seeks to avoid driving down the iron ore market and presses forward with its recovery from a deadly dam break in 2019.

Speaking at an interview during the Reuters Commodity Trading Summit, Luciano Siani, chief financial officer for Vale, says that the miner is prepared to raise its capacity using safer and less polluting methods to 450 million tonnes in about five years – almost 50 percent more than forecast production for 2020.

“We are going to be responsible and we are not going to overflow the markets with iron ore,” he adds, asserting that the miner would not use full capacity if an expected surge in manufacturing-driven Asian demand does not materialise.

“The intent is not to oversupply the markets towards 450 (million tonnes). It is to have the capacity available to meet the market if the need be,” Siani explains.

As the only global iron ore miner with sizeable plans to expand capacity, Vale’s production decisions affect prices of steel products around the world. Its path to growth includes new mines in the north of Brazil, as well as reviving production at some of its older mines in the country’s traditional mining heartland of Minas Gerais.

In the third quarter of this year, the miner briefly recovered its status as top global producer after raising output slightly above its Australian competitor, Rio Tinto, the Reuters report points out….

Link here for the full Mining Global news article

Alan Green talks i3 Energy #I3E, Kavango Resources #KAV & Mirriad #MIRI on the Vox Markets podcast

Alan Green discusses i3 Energy #I3E, Kavango Resources #KAV & Mirriad #MIRI with Justin Waite on the Vox Markets podcast. Interview is 8 minutes 50 seconds in.

Power Metal Resources #POW – Botswana Molopo Farms Complex drilling update – first & second holes have potential to host nickel and PGMs

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce a drilling update for the second diamond drill hole (KKME 1-6) at the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project, which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

HIGHLIGHTS

  • The second exploration drill hole KKME 1-6 commenced on 19 November 2020 and intersected serpentinised ultramafic rocks at about 27m immediately beneath Kalahari Group sediments.
  • By end of day on 27 November 2020, the drill hole had reached a depth of about 286m and has continuously intersected ultramafic rocks comprising mostly serpentinite after dunite or harzburgite.  The rock is very altered to about 115m and generally quite sheared and fractured throughout, however the drilling team have been able to maintain near 100% core recovery.
  • Preliminary inspection of the core from the lower part of the hole shows indications of possible cyclic layering within the intrusive ultramafic rocks.
  • Geological logging of the core indicates a shear/feeder zone setting and samples including from the prospective layering features will be analysed for both nickel and PGMs.

CHIEF EXECUTIVE OFFICER UPDATE

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“Further significant progress has been achieved with the geological model of the feeder zone being demonstrated through the core from the first and second holes.

The first hole produced 167 metres of ultramafic rock and this second hole has already produced about 260 metres of ultramafic rock, which has potential to host nickel and PGMs, and will be subject to assay testing.

After a short weekend break the drilling team will now continue the hole down to target depth of circa 500 metres.” 

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently has an 18.26% shareholding in Kalahari Key and has elected to earn in (“Earn-In”) to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure in 2020, notably the diamond drilling of selected targets (the “Drill Programme”).  To date Power Metal have paid US$192,641 leaving a balance remaining of US$307,359 (approximately £230,523) which is fully covered by Power Metal cash resources.

The original Earn-in period was to 31.12.20 however Power Metal and Kalahari Key have mutually agreed to extend this to 31.1.21 as some drill programme activities and invoices relating thereto and requiring payment may not be received until early in 2021.

THE DRILL PROGRAMME

The Drill Programme is for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m.

The Drill Programme is designed to intersect four high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysics surveys.

DRILL HOLE KKME 1-6

Hole KKME 1-6 is the second hole of a planned 2,505 metre four-hole programme and has a planned down-hole target depth of 500m to the upper side of a conductive body modelled from geophysical survey data.

This second drill collar is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

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.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.

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 (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 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.

Alan Green presents the investment case for ECR Minerals #ECR and Panther Metals #PALM on his weekly Stockbox Media Research talk

Alan Green presents the investment case for ECR Minerals #ECR and Panther Metals #PALM on his weekly Stockbox Media Research talk

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