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Power Metal Resources #POW – Uranium Exploration Update – Athabasca Basin

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an exploration update from its uranium property portfolio surrounding the Athabasca Basin, Saskatchewan, Canada.

HIGHLIGHTS

–   Phase I work programme now underway at Clearwater, Tait Hill and Thibault Lake properties, with a Phase II programme being prepared for the Soaring Bay property.

–  Exploration team are prioritising the initial follow-up work on the Thibault Lake property where the 2021 mapping and sampling programme returned high grade uranium sample assays of up to 38,600 ppm or 3.86% uranium oxide (“U308“)

–     Programme will utilise a handheld gamma-ray field spectrometer for real time radiometric analysis and mapping with anomalous samples collected for assay at an accredited analytical laboratory.  Laboratory assays will include testing for uranium, rare earth elements (“REE”), transition metals and precious/base metals.

Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented: 

“The Athabasca uranium portfolio constitutes a priority exploration project for Power Metal, and today’s update demonstrates our commitment to getting on with the exploration work.

This 2022 Phase I Field Programme now underway covers three Athabasca properties: Clearwater; Thibault Lake; and Tait Hill. The planned work will build on the positive findings of the 2021 fieldwork, providing more extensive and in-depth results over each area property.

We have seen considerable interest in the Athabasca area, which we believe is inspired by an extremely positive forward dynamic in the uranium sector. The value of the ground held through our uranium properties is, in our view, increasing considerably and this value will be further enhanced through the current exploration work designed to underpin the uranium prospectivity.

With the commencement of this work, Power Metal now has three field-based exploration programmes currently underway: the Athabasca Portfolio in Canada; and the Molopo Farms Complex Project and Tati Project in Botswana.”

2021 URANIUM EXPLORATION PROGRAMME BACKGROUND

Due to a short field season window available after the staking of the Company’s first seven uranium focused mineral properties, a single day of prospecting was spent on each of the Clearwater, Tait Hill and Thibault Lake uranium properties during October and November 2021. The results from the 2021 work programme were released on 20 December 2021 and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/uranium-exploration-update-athabasca-basin/15256838

2021 Programme Highlights

· Despite minimal time being spent on each of the three properties, significant uranium mineralisation was encountered including grab sample results up to 38,600 ppm or 3.86% U308 (uranium oxide) from the Thibault Lake uranium Property.

· In addition, to significant uranium mineralisation being encountered on all three properties, other notable results including REE and transition metal mineralisation in the form of thorium (Th) up to 1,150 ppm and zirconium (Zr) up to 1,860 ppm were recorded from the Tait Hill uranium property, as well as base-metal results including lead (Pb) up to 8,320 ppm recorded from the Thibault Lake uranium property.

· Several target areas, identified during the 2021 programme, were designated for high priority follow up during the current work programme.

During the 2021-2022 winter, the Company conducted  thorough reviews of all data available across the Athabasca focused portfolio. In addition, Dr Neil Pendock was engaged by the Company to undertake a detailed hyperspectral data analysis utilising Sentinel-2 satellite data on hydrogen and helium gas reflectance. The results of this hyperspectral work programme were released on 12 July 2022 and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/uranium-targets-confirmed-athabasca-basin-canada/15537428

As a result of the work completed to date, the Company was able to identify several new uranium exploration targets as well as further refine pre-existing targets. The 2022 work programme which is now underway, has been designed to further investigate several of these exciting targets. Additional 2022 programme details are discussed below.

2022 URANIUM EXPLORATION PROGRAMME FURTHER INFORMATION

· Field teams with extensive Athabasca basin focused uranium exploration experience have been engaged by the Company to undertake the Phase I Field Programme. The teams will be based in Uranium City, Saskatchewan, which is roughly equidistant from several of Power Metal’s uranium properties, which will allow for rapid and efficient mobilisation to site.

· The planned Phase I field programme will involve field teams spending three days on each of the three properties, completing transverses over pre-defined targets utilising a handheld gamma-ray spectrometer (to detect radioactivity), mapping and collection of rock samples for analysis by an accredited laboratory. Daily correspondence will be maintained between the field teams and the company’s exploration manager, ensuring efficient and targeted exploration throughout the entire campaign. A Phase II work programme is scheduled for later in the month at Soaring Bay and will be similar in nature to this Phase I exploration, but with the addition of Radon surveying.

· Following completion of the fieldwork, all information will be integrated and categorised into the in-house data rooms. Samples collected will be analysed by Saskatchewan Research Council laboratories for multi-element analysis including uranium, REE, transition and base metals.

The Company’s Phase I and Phase II work programmes are intended to further refine various uranium focused exploration targets, with the intention of eventually progressing the highest priority targets to a drill-ready stage.

URANIUM PROPERTIES – HOLDING STRUCTURE

Power Metal has a 100% subsidiary Power Metal Canada Inc (“Power Canada”), which acts as the holding Company for certain Canadian project operations. Power Canada has a wholly owned subsidiary, 102134984 Saskatchewan Ltd, which is the holder of the Company’s Athabasca uranium portfolio.

Table 1: 102134984 Saskatchewan Ltd., Athabasca Basin Property Holdings*

 

Project

Licence ID

Area

(Hectare)

Area

(km2)

Clearwater Uranium Property

MC00015079

1,110

11.1

MC00015083

563

5.63

MC00015082

3,191

31.91

MC00015151

760

7.6

MC00015646

761

7.61

MC00015658

1,541

15.41

Tait Hill Uranium Property

MC00015078

1,576

15.76

MC00015081

968

9.68

MC00015153

1,530

15.3

MC00015152

1,886

18.86

MC00015647

725

7.25

MC00015648

1,129

11.29

Thibaut Lake Uranium Property

MC00015077

2,206

22.06

MC00015659

2,195

21.95

Soaring Bay Uranium Property

MC00015080

1,255

12.55

MC00015155

3,375

33.75

MC00015874

748

7.48

MC00015875

2,529

25.29

Cook Lake Uranium Property

MC00015212

984

9.84

E-12 Uranium Property

MC00015213

1,323

13.23

Reitenbach Uranium Property#

MC00015214

2,135

21.35

MC00015474

1,235

12.35

MC00015655

4,570

45.7

MC00015656

5,322

53.22

MC00015657

856

8.56

MC00015824

528

5.28

Reindeer Lake*

MC00015522

3,336

33.36

Porter Lake*

MC00015561

5,656

56.56

MC00015562

5,198

51.98

Old Woman Rapids*

MC00015563

4,851

48.51

MC00015564

5,063

50.63

MC00015565

3,044

30.44

Total Licence Holding Area

72,152

721 km2

* Property acquisition announced on 25 July 2022 – licence transfers in progress

 #   Reitenbach Property conditionally disposed to Teathers Financial PLC as announced 8 August 2022

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:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

NOTES TO EDITORS

Power Metal Resources plc – Background

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

Exploration work programmes may also be underway within planned IPO vehicles where Power Metal has a material interest the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required:

www.firstclassmetalsplc.com

www.goldenmetalresources.com

www.firstdevelopmentresources.com

For planned IPO vehicle New Ballarat Gold Corporation PLC (NBCG) a new website is currently in development which will be found at www.newballaratgold.com .  In the interim further information in respect of NBGC can be found athttps://www.powermetalresources.com/project/victoria-goldfields/ .

Power Metal also holds a material investment in Kavango Resources plc with exploration updates available through their regulatory announcements and on their website:

www.kavangoresources.com

Project

Location

Current

POW %

Work Completed or Underway

Results Awaited

Athabasca Uranium

Canada

100%

Hyperspectral data analysis conducted across 7 properties. Updating to 9 data rooms for third party review. Exploration programme commenced across Clearwater, Tait Hill & Thibault Lake.

Finalise review of hyperspectral data from 3 properties.  Results from summer exploration programme across 3 properties and planning for exploration on Soaring Bay property.

Authier North Lithium

Canada

Earn-in to 100%

Property Evaluation Report completed.

Update covering exploration plans for target areas identified during the Evaluation.

Molopo Farms

Botswana

53%#

Comprehensive data review complete and establishment of data room for third party review. Geophysics programme underway.

Finalise drill programme targets, select drill contractor and launch drill programme.

Tati Project

Botswana

100%

Site visit with mapping of gold workings and mine dumps.

Exploration planning underway including further mapping, sampling and launch of an RC drill programme.

# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

#POW Power Metal Resources – Disposal of Reitenbach Uranium Property – Canada

Power Metal Resources plc (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the conditional disposal of its 100% owned Reitenbach Uranium Property (“Reitenbach” or the “Property”) located east of the prolific Athabasca Basin in Northern Saskatchewan, Canada.

HIGHLIGHTS:

–  A Property Purchase Agreement (the “Agreement”) has been signed with Teathers Financial Plc (“Teathers Financial” or “Teathers”).  Teathers Financial is to conditionally acquire 100% ownership of the Property, subject to a 2% net smelter return (“NSR”) royalty, in exchange for cash and shares.

–  The consideration payable is £360,000 (to be settled by the issue of Teathers Financial new ordinary shares of 0.1p (“Ordinary Shares”) and a cash payment of £10,000 (see detailed terms below)).

–  Reitenbach is one of ten uranium properties held by 102134984 Saskatchewan Ltd (“Power Sask”), a wholly owned subsidiary of Power Metal Resources Canada (“POW Canada”) which itself is a wholly owned subsidiary of Power Metal.

–  Teathers Financial is currently in the advance stages of preparing for a change of business to become a uranium focused exploration company which plans to list on the London equity capital markets – targeted for Q3 2022.

 

Paul Johnson, Chief Executive Officer of Power Metal Resources PLC commented:

“Power Metal has secured another crystallisation event with the disposal of Reitenbach into a vehicle planning to list in the London markets in the near term.

With the refocussing of Teathers into a uranium exploration vehicle with Reitenbach as their flagship property, we believe the proposition will attract pre-IPO and IPO financing interest, and trade successfully as a listed vehicle.

Outside of Reitenbach, we continue to own 100% of our remaining nine Athabasca properties, some of which we expect to explore ourselves and, given the level of interest in quality uranium projects, some may be the subject of further disposals. In this regard, datarooms are being established for all projects to enable expeditious third party review.

Further information to follow regarding this disposal and other exploration and corporate activities in respect of our Athabasca property portfolio.”

 

TRANSACTION TERMS

For the sale of 100% of the Company’s interest in the Reitenbach Property, one of ten uranium focused properties held by Power Metal surrounding the Athabasca Basin, Saskatchewan, Canada, the consideration of £360,000 is to be settled by:

· The issue to Power Sask of 98,700,000 Teathers Financial Ordinary Shares at a price of 0.35461p per share for a total value of £350,000.

· A cash payment to Power Sask  totalling £10,000, which covers several costs incurred by Power Metal on behalf of Power Sask and Power Canada in preparation of this transaction. This also covers costs of the National Instrument 43-101 report that was completed over the Property – which will allow Reitenbach to be the main listing asset for Teathers Financial during its upcoming planned listing.

Power Sask will retain a 2% Net Smelter Return (“NSR”)[1] royalty across the Property, 1% of which can be bought back by Teathers Financial at anytime prior to production for £750,000.  

The transaction is conditional on:

–  Teathers Financial securing a £125,000 initial pre-IPO financing to cover transactional costs in relation to the planned listing.

–  The approval of Teathers Financial shareholders to the transaction; to a Rule 9 Whitewash arrangement, enabling Power Metal to acquire its interest without a requirement to make an offer for the entire company and approval of a capital reorganisation of Teathers.

–  Admission of Teathers shares to trading on the London equity capital markets.

After the issue of further shares following completion of  Teathers Financial pre-IPO and IPO financings, Power Metal anticipates its holding will amount to 40-55% of Teathers Financial issued share capital on listing. Power Metal will provide further updates on this in due course.

NEXT STEPS

 

· Exploration programmes are currently being planned across the Reitenbach Property, which subject to completion of the Agreement will be carried out by Teathers Financial following their planned listing in the London capital markets.

· Power Metal, with its in house technical group with expertise in uranium exploration, have agreed to provide Teathers with ongoing technical consulting services, to be paid for by Teathers, relating to planned and future exploration programmes on the Reitenbach Property.

· Reflecting the growing interest shown from third parties, comprehensive datarooms and factsheets are being established for all of the Company’s Saskatchewan based uranium assets.

THE REITENBACH PROPERTY

A detailed breakdown of all publically available technical information over the Reitenbach Uranium Property was released to the market on 8 February 2022 and can be found at the link below:

https://www.londonstockexchange.com/news-article/POW/reitenbach-uranium-property-athabasca-basin/15319141

The Power Metal book value of the Reitenbach Property is £55,292 and no losses have been recorded in respect of the Property in the year ended 30 September 2021, with all costs capitalised.

URANIUM PROPERTY HOLDING STRUCTURE

Power Metal has a 100% subsidiary Power Metal Canada Inc (“Power Canada”). which acts as the holding company for certain Canadian project operations. 

Power Canada has a wholly owned subsidiary, 102134984 Saskatchewan Ltd, which is the holder of all the uranium properties.

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

 

 

For further information please visit  https://www.powermetalresources.com/  or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

 

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

 

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

 

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

#POW Power Metal Resources – Molopo Farms Complex Project – Exploration Update

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update in relation to the Molopo Farms Complex Project (“Molopo” or the “Project”) targeting a large scale nickel-platinum group element (“PGE”) discovery in southwestern Botswana.

 

MOLOPO FARMS EXPLORATION HISTORY

 

–  The Project is targeting nickel (Ni), copper (Cu) and platinum-group-element (PGE) mineralisation within the Molopo Farms Complex (“MFC”) of the Bushveld Large Igneous Province.

 

–  Airborne geophysics previously completed confirmed an exploration model focusing on magmatic feeder zones within the MFC.

 

–  Significantly, the previous drill programme which concluded in 2021 intersected nickel-sulphides downhole with individual grades up to 1.69% Ni including 0.55g/t platinum (Pt)  over 0.6m from 446.7m downhole 1.

 

–  Follow-up petrographical work undertaken identified primary nickel and copper sulphides (incl. pentlandite, bornite and chalcocite).

NEXT EXPLORATION PHASE COMMENCES

 

–  Spectral Geophysics have mobilised to the Project to conduct two electromagnetic geophysics surveys to facilitate the precision targeting of planned diamond drill holes for a drill programme expected to commence in the autumn.

 

–  Power Metal technical team have compiled all project data into a dataroom to underpin forward project development and which is available for third parties who have expressed an interest in potential engagement on the Project.

 

–  Final negotiations proceeding with Botswana drill contractors for the upcoming planned diamond drill programme at the Project.

 

Paul Johnson, Chief Executive Officer of Power Metal Resources commented:

“We are making very important progress as we look to reinvigorate the Molopo Farms Project, arguably one of the Company’s major exploration success stories from 2020/2021.

The main next step is planned diamond drilling focused on the discovery of economic nickel sulphides and following up on the highly positive results from the drill programme completed in early 2021.

To ensure we are optimising drill hole targetting, Spectral Geophysics have been engaged to conduct a geophysics programme, and whilst that continues we are making arrangements for the engagement of drill contractors.

Molopo is a priority exploration Project for Power Metal and I look forward to providing further updates to the market on our operational progress and drill plans.”

FURTHER INFORMATION

Power Metal has amalgamated and compiled all data received from previous operators and organised it into a singular dataroom. Third-parties that have previously expressed interest in the Project have been re-engaged by Power and have been supplied with the updated database.

The Company is in final stages of negotiation with two Botswana-based drill contractors and is looking to finalise and sign a contract within the next few weeks in advance of a diamond drilling programme currently expected to commence in the autumn.

 

Weekly technical meetings are being conducted between Power Metal and representatives from the project partner Kalahari Key Mineral Exploration (Pty) Ltd (“Kalahari Key” or “KKME”), in order to finalise the planned drilling campaign and deliniate future exploration works.

Spectral Geophysics has mobilised to the Project and has commenced a geophysical work programme which will include moving loop electromagnetic (“MLEM”) surveys over targets 1-14 and 1-6 located within prospecting licence area PL311/2016. The rationale for these surveys is as follows:

 Target 1-6 : previous 2020/2021 drill programme results returned nickel values up to 1.69% Ni with 0.55g/t Pt and 0.14g/t Au over 0.6m from 446.7m downhole, within layered ultramafic rocks of the Molopo Farms Complex 1,2. The ongoing MLEM survey will aid in the further refinement of the original electromagnetic (“EM”) geophysics anomaly that was targeted by drilling in 2021. The results from this survey will allow for optimum drillhole siting prior to the 2022 drilling programme.

 Target 1-14 : is defined by a broad strong EM anomaly which was targeted by a single hole 2020/2021 drill programme 2. That drilling intersected carbonaceous mudstones at depth 3 which, although highly conductive, were determined to be flat lying and therefore did not explain the anomaly which was indicative of a shallower, steeply dipping body. The MLEM survey will provide higher resolution and further refinement of the original EM response, aiding the effective siting of future drill holes.

 

PROJECT BACKGROUND AND OWNERSHIP

 

Power Metal currently has a current circa 53% effective economic interest in Molopo, held through a direct project interest and a shareholding in partner Kalahari Key.  On 18 May 2022 Power Metal announced a conditional transaction that would see its interest  in Molopo increasing to 87.71% (the “Transaction”).  The announcement may be viewed through the following link:

 

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701

 

As part of the Transaction, Power Metal will become the Project operator and in advance of completion the Company is working with the team at KKME to maintain momentum with regard to Project exploration.

 

Work streams are also in process to secure Botswana regulatory approvals enabling the Transaction to complete.

 

References:

 

1  Source: Company announcement: 24 September 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/x4919kw )

 

2  Source: Company announcement: 21 July 2021

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rng8onx )

 

3  Source: Company announcement: 16 November 2020

( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/w11ge3w   )

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:

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

First Development Resources #FDR – CEO Tristan Pottas talks to Alan Green

Alan Green talks to First Development Resources #FDR CEO Tristan Pottas. FDR is a UK based company seeking major mineral discoveries in Australia with three copper-gold projects in the highly-prospective Paterson Region of Western Australia and a uranium and Rare Earth Element project in the mining friendly Northern Territories. Tristan discusses how, backed by largest shareholder Power Metal Resources #POW, the team assembled an impressive board ahead of the IPO later this year. We then discuss Australia as a premier destination for mining companies, before discussing the Wallal, Braeside West and Ripon Hills Gold & Copper assets, and in particular the Havieron-esque magnetic bullseye discovered by the team at Wallal. Tristan then looks at the potential at the Selta Uranium and REE project, before outlining some upcoming milestones for investors to watch out for.

#POW Power Metal Resources – #FDR First Development Resources Company Update

Power Metal Resources plc (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio provides an update to shareholders in respect of its project portfolio in Western Australia and the Northern Territory held through its 62.12% subsidiary First Development Resources Limited (“First Development Resources” or “FDR”) which is seeking a planned listing in the London capital markets.

HIGHLIGHTS:

· Wallal Heritage Clearance Survey dates confirmed by Yamatji Marlpa Aboriginal Corporation. The survey is scheduled to take place between 16 – 19 August 2022.

· A drilling contract has been signed with DDH1 Drilling Limited (“DDH1 Drilling”) for the Wallal Phase I diamond drilling programme. DDH1 Drilling have extensive experience in the Paterson region and drilled the discovery holes for the Greatland Gold plc Havieron deposit.

· The in-depth desktop review for the Ripon Hills and Braeside West projects is now complete with multiple targets identified for gold and base-metals associated with deep-seated fault structures confirmed for further investigation.

· Selta Project reconnaissance confirms the presence of pegmatite geology and the litho-geochemical analysis of samples suggests the area is dominated by a zoned pegmatite system originating from nearby granites.

· FDR board and advisor group composition has been finalised. All key advisors have been engaged and are now working with FDR to secure its planned UK listing targeted for later this year.

 

Tristan Pottas, Chief Executive Officer of First Development Resources Ltd, commented:

“In-depth analysis has now been completed for all projects within FDR’s portfolio and we now have multiple targets identified for further investigation across all our assets. The excellent work completed by our in-house geological team and external consultants has resulted in the development of conceptual targets to a point where plans are now being made to simultaneously test multiple priority areas following FDR’s planned listing later this year.

Wallal remains our primary focus and we are pleased to confirm that we now have a date for our Heritage Clearance Survey which, when complete, will allow us to work with our drilling partner DDH1 Drilling to complete all preparatory work to facilitate commencement of diamond drilling post targeted completion of FDR’s planned UK listing.”

Paul Johnson, Chief Executive Officer of Power Metal Resources PLC, commented:

“The FDR team continue to progress work across its project portfolio in Australia whilst at the same time advancing the various workstreams necessary to efficiently complete the planned UK listing process.

The cumulative findings from our internal work supported by feedback from FDR’s advisor group gives us the confidence to push ahead aggressively with our work, enhanced particularly by the ongoing investment into detailed desktop reviews which is significantly increasing our project knowledge at very modest cost.”

WALLAL HERITAGE CLEARANCE SURVEY

The Heritage Clearance Survey (the “Survey”) is a required precursor to the planned Phase I diamond core drilling programme at the company’s Wallal project located in the Paterson Province of Western Australia. The Survey is in accordance with Section 18 of the Aboriginal Heritage Act 1972 and in accordance with the terms of the Heritage Agreement in place with the Yamatji Marlpa Aboriginal Corporation (“YMAC”) as agent for the Nyangumarta Warrarn Aboriginal Corporation. A Survey is required where Heritage sites (archaeological or ethnographic) have been identified, and disturbance of these sites cannot be avoided by the development.

The Survey team, appointed by YMAC, will consist of the Heritage consultant(s) which, if necessary, will comprise both an anthropologist and an archaeologist; such members of the Common Law Holders as the Manager Heritage Services advises are necessary to examine and assist in the Heritage Survey; a Community Liaison Officer; and representatives from FDR.

The Survey request which included a detailed description of the Phase I diamond core drilling programme and site-specific maps was submitted to YMAC by the Company’s appointed Exploration Manager on 31 January 2022. The Survey is scheduled to take place between 16 – 19 August 2022 and will cover the proposed drilling locations and all associated access tracks.

WALLAL PHASE I DIAMOND CORE DRILLING PROGRAMME

FDR’s Phase I diamond core drilling programme has been designed in conjunction with Perth based consultancy Resource Potentials Pty Ltd (“Resource Potentials”). The programme is targeting the Proterozoic basement rocks below the Permian Grant Group which are believed to host the sources of the magnetic bullseye anomalies identified during the completion of an in-depth review of all geological and geophysical data associated with the Wallal project area.

Three magnetic bullseye anomalies were identified in the review, the Western, Eastern and Border anomalies. The magnetic bullseye anomalies are of particular interest due to their possible geological similarities to the regionally significant Havieron discovery (Greatland Gold – Newcrest Joint venture). The Havieron deposit is coincident with a magnetic bullseye anomaly detected by an airborne magnetic survey and has a similar amplitude to Wallal, approximately 100nanoTesla (“nT”) for the Eastern anomaly and 80nT for Havieron. The Phase I diamond core drilling programme has been designed to initially test the Eastern anomaly. The Eastern anomaly is interpreted to consist of two lobes which result in a distinct target area of approximately 2.5km x 2.5km. An estimate of depth of the cover sequence has been used to constrain the modelled depth of approximately 800 metres to the top of the Eastern magnetic source body.

The Phase I diamond drilling programme will consist of a minimum of two sub-vertical boreholes totalling approximately 2,720 metres, which will be drilled using rotary open hole to about 150 metres and then full core drilling techniques there onwards. Depending on ground conditions encountered, it is expected that the holes will be commenced using reverse circulation drilling techniques, followed by 83mm (PQ3) or 61.1mm (HQ3) diameter core with a 50.5mm (NQ2) tail to total depth. The parameters for the planned boreholes are set out in Table 1:

Table 1: Planned Wallal Phase I Drillhole Parameters

Drillhole ID

Easting

Northing

Azimuth (°)

Dip (°)

Nominal depth (m)

DH1

260325

7780690

90

80

1,220

DH2

259850

7780772

270

80

1,500

 

WALLAL DRILLING CONTRACT SIGNED

FDR have engaged the services of DDH1 Drilling (ASX:DDH) to complete the Phase I diamond core drilling programme. Established in 2006, DDH1 Drilling is a leading provider of technically innovative drilling services to the Australian mineral exploration and mining industry. DDH1 Drilling operate Australia’s largest surface fleet of state-of-the-art drilling rigs capable of drilling and extracting geological core samples from depths of up to 3,000 metres with Industry best practice safety systems supported by a professional and well-trained workforce. DDH1 have extensive experience operating in the Paterson region working on notable projects including Greatland Gold’s (LON:GGP) discovery drillholes at Havieron.

RIPON HILLS / BRAESIDE WEST DESKTOP REVIEW

The in-depth data review for FDR’s Braeside West and Ripon Hills projects is now complete. Resource Potentials have reviewed all publicly available geological, geophysical and geochemical data and have identified multiple targets associated with major northwest trending faults prevalent across the region.

PROJECT BACKGROUND

First Development Resources has the precious and base-metal rights, excluding manganese and iron, over their Braeside West and Ripon Hills project tenements, which are located close to each other in the eastern Pilbara region of Western Australia.  These projects are in the same region as the world class Woodie Woodie manganese mine, next to recent gold-silver and base metal discoveries by Rumble Resources Limited at their Braeside Project (ASX:RTR, “Rumble” or “Rumble Resources”), and located to the west of gold-copper mines and deposits of the Paterson region, including Telfer (Newcrest), Havieron (Greatland-Newcrest), Nifty (Cyprium) and Winu (Rio Tinto).

The FDR project areas are accessible via sealed highway from Port Hedland via Marble Bar, or unsealed and sealed highway from Newman via Nullagine, and then unsealed tracks into the project areas.  The Braeside West project is comprised of one granted exploration licence (E45/5854, 138km2) and is held 100% in the name of Pardoo Resources Pty Limited, a wholly owned subsidiary of FDR. The Ripon Hills project is comprised of one granted exploration licence (E45/5088, 48km2) and is owned 100% by Great Sandy Pty Ltd.  Both project tenements are subject to a split commodity agreement with Accelerate Resources Limited (ASX listed under AX8, “Accelerate”), whereby Accelerate holds mineral rights to manganese and iron while FDR retains rights to all other mineral commodities.

RIPON HILLS

The Ripon Hills tenement covers part of the western limb of the Oakover Syncline and contains outcropping Carawine Dolomite of the Archaean Hamersley Group overlying rocks of the Fortescue Group. The project is considered to be prospective for base-metal and gold mineralisation associated with deep seated north to north westerly trending fault structures. These structures have the potential to be conduits for various styles of hydrothermal mineralisation as evidenced by recent exploration conducted by Rumble Resources, some 25km to the east.

Exploration by Rumble over the last 4 years along the eastern limb of the Oakover Syncline within rocks of the Fortescue Group has defined a regional scale porphyry to epithermal mineralised system that extends over 60km in length and 8km in width. They have defined 45 priority copper-gold-zinc-lead-silver targets and delineated five deposit types. Similar prospective rock types occur within the Ripon Hills area which has had very limited past base metal and gold exploration.

The immediate targets for exploration within the Ripon Hills tenement are the mapped and interpreted north to north westerly striking deep seated fault structures which have the potential to host various styles of hydrothermal base metal and gold mineralisation.

BRAESIDE WEST

The Braeside West tenement is located approximately 250km east south-east of Port Hedland on the western edge of the Paterson Province, Western Australia. The tenement covers approximately 138km2 and is accessed via the sealed Marble Bar-Woodie Woodie road and unsealed station tracks. First Development Resources has the base-metal and gold rights over the tenement while Accelerate Resources holds the manganese and iron rights. This split-commodity arrangement will present several beneficial opportunities to FDR when it comes to exploration in the field.

Past exploration over the Braeside West Project tenement and surrounding area was focused primarily on the exploration for manganese within the Carawine Dolomite and overlying Pinjian Chert. These rock types host the manganese deposits of the Woodie Woodie Mining centre, one of Australia’s major high grade manganese mines. There is only very minor reported base-metal or gold exploration over the tenement with work restricted to a regional stream sediment sampling programme by Carpentaria Exploration 1989-1991. The tenement area has been held almost continuously since the 1960’s by manganese explorers precluding any serious base metal assessment.

Commencing in 2017, Rumble Resources recognised the potential of the Braeside area and they became the first modern explorer to systematically evaluate the base-metal and gold potential of the region. Through this work they have now defined regional scale porphyry, epithermal and Volcanogenic Hosted Massive Sulphide system. Polymetallic exploration is continuing on this extensive, highly prospective yet under explored region of the Pilbara.

Significantly, the Braeside West tenement which is adjacent to the Rumble Project contains a considerable strike length of the unexplored, yet prospective mafic and sedimentary units targeted by Rumble. These units and the important north northwest trending regional structures will be the focus for FDR during its initial exploration campaigns.

EXPLORATION TARGETING AND PROPOSED ACTIVITIES

The main mineral targets in the FDR Braeside West and Ripon Hills project areas are similar to the gold-silver-lead-zinc-copper-vanadium mineral deposits and occurrences within the Rumble Braeside Project located to the east.  Historically, the FDR tenements have been explored for shallow manganese deposits since the 1960s, with only minor base-metal exploration.  More recent exploration for shallow manganese deposits by Jupiter Mines and Pilbara Manganese (a subsidiary of Consolidated Minerals) consisted of detailed geological mapping, rock chip sampling, small gravity surveys and detailed aerial geophysical surveys, mainly VTEM and XTEM airborne electromagnetics to target conductive zones of shallow manganese mineralisation.  A ZTEM airborne audiomagnetotelluric survey was also flown over the Braeside West tenement.  Other government acquired geophysical datasets over the project areas include regional aeromagnetics and radiometrics, airborne gravity, and very wide spaced TEMPEST airborne electromagnetics.

FDR has obtained copies of all these historical exploration datasets and intends to re-process and interpret these datasets to focus targeting for base metal sulphide style deposits in older outcropping geological units to the side or below the Carawine Dolomite – Pinjian Chert Breccia formations. Accelerate have also recently carried out drone-based LiDAR digital elevation and aerial photography surveying at Braeside West, which has helped them to generate manganese drilling targets.  FDR will be working closely with Accelerate to co-explore the project tenements and combine efforts in the field.

FDR is now working with Resource Potentials to develop the next phase of exploration at both Braeside West and Ripon Hills.

SELTA PROJECT – LITHIUM REVIEW

The in-depth review of all publicly available geological, geophysical and geochemical data for the Selta Project identified multiple uranium and rare-earth element (“REE”) targets within the Selta Project area and highlighted the potential for lithium, gold and base-metal mineralisation. The potential for lithium presented an additional opportunity for a mineral discovery within the Selta Project area, an opportunity which had previously been unknown. To gain a better understanding of the potential for lithium-caesium-tantalum (“LCT”) type pegmatites, the Company immediately commenced a lithium review of all publicly available data to help refine target areas for further investigation and deployed a team to Selta to confirm the presence of pegmatite geology.

The announcement in respect of this lithium review may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/first-development-resources-selta-lithium-update/15491241

During the reconnaissance the site team was able to confirm the presence of pegmatite geology and collect samples to determine mineralogy.

The results of the sampling and chemical testing of pegmatites on the property indicates that the pegmatites analysed on the southwest of the property is part of zoned pegmatite system, most likely originating from the nearby granite. However, it must be noted that only seventeen samples were analysed, and pegmatites typically have variable composition, even over short distances.

Lithogeochemical analysis of Selta continues to support the lithium and REE prospectivity of the project, and the initial sampling programme, over a very small proportion of the property has provided valuable information for future exploration programmes.

CORPORATE ACTIVITIES

FDR corporate activities are focussed on achieving its planned listing on the London capital markets later this year. The Company has appointed an experienced finance director further enhancing what is already a very experienced management team. In addition to finalising the board, FDR’s full advisor group has now been assembled. The listing advisory group which includes FDR’s legal, accounting and corporate advisory teams are meeting regularly and are compiling all the necessary documentation to support the planned listing process.

An initial draft of FDR’s Competent Person Report (“CPR”) has been received from SRK Consulting (Australasia) Pty Ltd. The CPR is a key document which forms part of the listing documentation and is produced to provide an independent view of the Company’s assets for potential investors. The CPR incorporates the findings of the in-depth review of the company’s Braeside West and Ripon Hills projects along with the geochemical data associated with the lithium specific reconnaissance completed in June at Selta.

Ahead of FDR’s planned listing later this year, the board and senior management will attend a site visit to Australia in August. The purpose of the visit is to provide the team with site specific experience prior to engaging with the market ahead of the planned initial public offering (“IPO”).

In addition to visiting all FDR’s project sites, the team will meet with in-country legal and accountancy teams along with key advisors supporting FDR’s proposed listing. FDR is working with its corporate broker to enable Australia based investors to participate in the IPO financing and meetings will be scheduled to introduce them to FDR and the company’s plans post listing.

FDR EXPLORATION INTERESTS

FDR holds the following exploration licence interests through its wholly owned Australian subsidiaries:

Wallal Project  (Wallal Main-E45/5816 –  390km 2  –  granted), (Wallal West 1-E45/5853  96km 2  – granted ) and (Wallal West 2 – E45/5880 –  86km 2  –  granted).

A comprehensive geophysical review has identified three magnetic bullseye anomalies located under Phanerozoic sedimentary cover which are interpreted to have possible geological similarities major Au-Cu deposits within the Paterson Province including Winu (Rio Tinto) and Havieron (Newcrest Mining-Greatland Gold joint venture).

Braeside West Project  (E45/5854 –  137km 2  –  one granted licence)

In-depth desktop analysis of historic exploration data is now complete on the Braeside West Project. A recent base-metal discovery by neighbouring company Rumble Resources Ltd (ASX:RTR) has enhanced the overall prospectively within the Braeside West Project area as it is hosted within a similar geological environment to that of Rumble Resources discovery.

Ripon Hills Project  (E45/5088 –  42km 2  –  one granted licence).

The Ripon Hills Project is prospective for base-metal and gold mineralisation associated with deep-seated north-south oriented fault structures which run through the Ripon Hills Project area. In-depth desktop analysis of historic exploration data is now complete for the project.

Selta Project   (EL 32737, EL 32738, EL 32755 – 1,575km2 – three granted licences)

The Selta Project is located in an area considered to be highly-prospective for uranium and rare earth element mineralisation. FDR recently completed an in-depth review of all geological, geophysical and geochemical data which also identified the potential for lithium, gold and base-metal mineralisation as well as the possibility of tin-tantalum-tungsten rich pegmatites.

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:

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

#POW Power Metal Resources – Listing of First Class Metals PLC

Power Metal Resources plc (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio notes the announcement today by First Class Metals PLC (LON:FCM)(“First Class”) confirming their First Day of Dealings with an admission to the Official List (by way of Standard Listing under Chapter 14 of the Listing Rules). This announcement may be viewed through the following link:

https://www.londonstockexchange.com/news-article/FCM/first-class-metals-plc-initial-admission/15561714?showDisclaimer=true

Power Metal and 100% owned subsidiary Power Metal Resources Canada Ltd hold a combined 28.19% interest in First Class which at the IPO price of 10p per First Class ordinary share of 0.1p each (“First Class Share”) is valued at £1,851,610 and which is held as follows:

POW Company

Shares

% First Class

Power Metal Resources Canada Ltd

17,998,392

27.40

Power Metal Resources PLC

517,705

0.79

Total

18,516,097

28.19

 

The total shareholding above is subject to a 12-month lock in agreement prohibiting the sale of First Class Shares, with a follow on further 12-month orderly market arrangement.

In addition to the shareholdings above, Power Metal holds 517,705 warrants to subscribe for a further 517,705 shares at an exercise price of 10p per First Class Share and with a life to expiry of 12 months from today’s date. 

 

Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:

“Our congratulations to the First Class Metals team for their work and commitment to secure this listing.  In our view, First Class has a highly prospective project portfolio centred within the prolific Schreiber-Hemlo belt of Ontario, Canada, and offers investors an exciting new investment proposition. 

Moreover, with active exploration on the ground underway, including First Class Metal’s joint-venture (JV) partner Palladium One (TSX-V:PDM) drilling at the Pickle Lake JV property, we anticipate active news flow from ground operations.

Today’s listing is a notable event for Power Metal, where a previous project investment has now become a significant balance sheet asset. We will be watching the progress of First Class with a keen interest.

Moreover, final preparations continue for the planned listing of Golden Metal Resources plc, another North American investment opportunity centred on Nevada, USA, and where Power Metal currently holds an 83.13% interest.  I look forward to providing further updates in respect of Golden Metal in the near term.”

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit  https://www.powermetalresources.com/   or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Power Metal Resources #POW – Quarterly Business Update with CEO Paul Johnson

Alan Green talks to Paul Johnson about today’s Quarterly Business Update. Paul provides background on today’s statement, and covers all the projects and developments outlined in the RNS, and with a view to the future, he talks through some upcoming events for investors to watch out for.

New UK Investor Magazine Podcast – Lloyds #LLOY, Rio Tinto #RIO, GreenX Metals #GRX and Power Metal Resources #POW

uk investor magazine podcast

 

We record this Podcast in the midst of earnings season with updates from blue chips companies flooding in from Europe as well as across the pond.

The earnings picture has been mixed, but notably better than investor sentiment would suggest. We discuss upcoming rate hikes from the Fed and market positioning ahead of their decision tonight.

In the current earnings season, US companies have consistently beaten on revenue but there have been misses on profitability.

We focus on Lloyds and Rio Tinto who both provide attractive dividends, but are being impacted in different ways but the current macro environment.

We finish by providing updates on two junior resource companies in Power Metal Resources and GreenX.

Lloyds, Rio Tinto and the European Earnings Season with Alan Green

Power Metal Resources #POW – Quarterly Business Update

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the quarterly business update for shareholders.

Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:

First Class Metals, into which we sold our Schreiber-Hemlo interests is nearing its planned listing; we recently conditionally disposed of our stake in the Botswana Kanye JV to our partner Kavango Resources; and we have Golden Metal Resources (Nevada, USA focused) nearing completion of its IPO preparations, with First Development Resources’ planned listing process (Australia focused) well underway. We expect more crystallisation events to occur from our still extensive portfolio.

Crystallisation of value into strategic investments bolsters our balance sheet considerably and offers the potential for considerable capital gains, alongside providing a major pool of available working capital to the Company.  However, what enthuses us even more is the future direction of the Company and the exploration potential offered from within our retained portfolio.

We would reinforce our commitment to growing a uranium focus in the Company, with the energy metal slated for a continuing resurgence as the world continues in its journey towards significantly increased reliance on nuclear power generation. Going forward, we will also focus our energy and resources on the more rapid advancement of certain retained exploration projects, including notably our two remaining Botswana interests in the Molopo Farms Complex and Tati Greenstone Belt projects.”

GUIDANCE FOR READERS

The tables below include the latest position of each project and our operational plans over the course of the next three months. 

Projects are grouped into the following categories to provide additional clarity to investors on the project status and near term plans:

–  Priority exploration projects

–  Project disposals or IPO processes underway

–  Projects with next steps to be determined pending receipt of further information

Below the project tables, additional information is provided covering new opportunities, business management, finance and compliance.

Readers are also encouraged to review Power Metal’s corporate website and presentation which are regularly updated and are available through the following links:

Website: www.powermetalresources.com

Corporate Presentation: https://www.powermetalresources.com/presentation/

PRIORITY EXPLORATION PROJECTS

Project

Latest Position & Forward Plans

Athabasca Uranium

Saskatchewan, Canada

(Uranium)

POW 100%

 

Power Metal currently holds 7 properties with 3 newly acquired properties to be transferred to it, as announced 26 July 2022 and which together cover 721km2surrounding the Athabasca Basin.

 

Detailed data compilation has been completed and external datarooms opened for third parties in respect of 7 properties. We have completed hyperspectral data analysis over 4 properties with the findings leading to the planned launch of ground exploration at those properties shortly.

 

In addition to exploration of retained uranium projects, the Company is working on corporate options in relation to certain of its Athabasca uranium interests.

 

Authier North

Quebec, Canada

(Lithium)

POW earn-in to 100%

 

The Company continues to monitor progress being made by Sayona Mining (ASX: SYA) who control the neighbouring Authier Lithium Project.

 

On 12 July 2022 Power Metal announced the decision to proceed into year 2 of the earn-in to a 100% interest in Authier North.

 

Ground exploration plans are being finalised with work expected to commence this quarter.

 

Molopo Farms Complex Project

Botswana

(Nickel – Copper – Platinum Group Element)

POW: Effective Economic Interest is currently 52.6% increasing  to 87.71% subject to completion of the KKME shares acquisition & restructuring announced 18.5.22.

 

Power Metal secured a conditional agreement to acquire an additional 58.7% of shares in project partner Kalahari Key Mineral Exploration Pty Limited (“KKME”) as announced on 18 July 2022:

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701

This acquisition, conditional on regulatory approval, will see Power Metal holding 87.71% of KKME which will hold 100% of the Molopo Farms Complex Project (“Molopo Farms”).

The next step is diamond drilling to follow up on the discovery of nickel sulphides in the first drill campaign and seeking an economic and large-scale discovery.

Planning is underway now for this next drill programme which, subject to completion of the agreement to acquire an additional 58.7% of shares in KKME, we expect to commence in the autumn.

Simultaneously, we have prepared and opened a Molopo Farms dataroom providing all project information for interested third parties to review. All such engagements will be under non-disclosure arrangements at this time.

Tati Project

Botswana

(Gold – Nickel)

POW: 100%

 

The Company announced the results from a maiden drill programme at the Tati Project on 4 April 2022 and this may be viewed through the following link:

 

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-drill-programme-results/15396365

 

Drilling confirmed 3 metres of 5.17g/t gold from 9 metres downhole, representing shallow gold mineralisation.  Analysis led to additional gold prospective ground being covered by a new prospecting licence (“PL”) application, which was granted in April 2022 as announced to the market:

 

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-new-licence-granted/15422038

 

Recently the Company’s technical team visited the new PL to conduct site inspections and mapping, confirming extensive historical gold workings at the Cherished Hope gold mine as well as large fines dumps which may be capable of near-term revenue generation through toll processing of gold:

 

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-exploration-update/15543783

 

As a result of the findings from the site visit undertaken, we have expedited plans including further volumentric analysis and gold sampling of fines dumps and a reverse circulation (“RC”) drill programme is expected to commence in September/October of this year.

 

 

PROJECT DISPOSALS OR IPO PROCESSES UNDERWAY

Note: other project packages within the Power Metal portfolio are also in earlier stages of spin-out preparations in addition to those listed below.

Project

Latest Position

Kanye Resources

Conditional Disposal to Kavango Resources

On 8 July 2022 Power Metal announced the conditional disposal of its Kanye Resources interest to its joint-venture partner Kavango Resources plc (LON:KAV)(“Kavango”).

The disposal is subject to the publication of a prospectus by Kavango including provision for the transaction.

Full terms and disposal consideration payable to Power Metal may be viewed in the announcement linked below:

https://www.londonstockexchange.com/news-article/POW/conditional-disposal-of-kanye-resources-interests/15532470

First Class Metals PLC (FCM)

Schreiber-Hemlo, Ontario, Canada

(Gold – Base Metals)

POW c.36%

 

Power Metal currently has an interest of 36.3% in FCM following the FCM pre-IPO financing which raised £486,000 in 2021. FCM is seeking a listing on the London capital markets which is expected to occur shortly.

First Class Metals has 100% ownership of 7 claim blocks covering over 180km² in the Hemlo – Schreiber greenstone belt of Ontario, Canada.

The North Hemlo flagship property covers over 90km2 and sits just north of Barrick Gold Corp’s Hemlo gold mine. The North Hemlo property has abundant showings of gold/copper/zinc/nickel. 

In the east of the North Hemlo property sits the Pickle Lake joint venture with Palladium One (TSX:PDM) which is the subject of a current drill programme focussing on nickel/copper targets.

Golden Metal Resources PLC (GMR)

Nevada, USA

Gold – Base Metals

POW 83.13%

 

Power Metal provided a Golden Metal Resources (“Golden Metal”) company update on 19 July 2022 which may be viewed below:

https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-company-update/15547371

Following the pre-IPO financing which raised £750,000 in late 2021 preparation for the planned listing of Golden Metal is near to completion and this will lead into the IPO financing, and subject to regulatory approvals, a planned listing on the London capital markets expected to occur this quarter.

Golden Metal is active from an exploration perspective with an induced polarisation (“IP”) survey underway over the Pilot Mountain project and a high-resolution soil geochemical survey active across the Garfield project.

First Development Resources Ltd (FDR)

Western Australia

(Gold – Copper – Rare Earth Elements – Uranium – Lithium)

POW: 62.12%

 

FDR has undertaken multiple exploration and corporate work streams in recent months. 

A detailed company update will be released to the market shortly providing an update which will cover:

–  Final preparations for the Wallal project diamond drill programme

–  Exploration findings from the Braeside West, Ripon Hills and Selta projects

–  Update with regard to the planned listing process now fully underway following the completion of a £1.125m pre-IPO financing as announced in June 2022.

 

New Ballarat Gold Corporation PLC (NBCG)

Victoria, Australia

(Gold)

POW: 49.9% 50.1% JV Partner Red Rock Resources PLC LON:RRR)

 

Through its Australian operating subsidiary, Red Rock Australasia Pty Ltd, NBGC has a substantial licence footprint within the Victoria Goldfields, Australia.  This comprises 14 granted exploration licences covering 1,832km2 and 5 licence applications covering 493km2.

A planned listing of NBGC has taken longer than anticipated but remains the focus of the company with a potential planned listing in the London or Australian capital markets later this year.

Much work has been undertaken recently to advance the licences held in NBGC including continuing exploration work by our in-country operational team. Also through the advancement of licence applications into granted status, which has now been achieved for 79% of the application footprint.

Recent licence grants include EL007330 located northeast of Ballarat and this newly granted licence covers the Ajax gold mine which historically produced 312,789oz gold at an average grade of 14.8g/t Au in the 1920s (“Ajax”). Further information in our announcement of 24 May 2022:

https://www.londonstockexchange.com/news-article/POW/victorian-gold-fields-grant-of-key-licences/15465313

The addition of the Ajax gold mine above was further supplemented by a transaction to acquire EL5535 which covers the historical Berringa gold mine just west of Ballaratwhich has historical production of 293,250 ounces of gold from 1898-1952, at an average grade of 8.3g/t (“Berringa”). Further information in our announcement of 6 July 2022:

https://www.londonstockexchange.com/news-article/POW/acquisition-of-historic-berringa-gold-mine/15528927

The mined sections of the Ajax and Berringa trends are thought by RRAL to be among the top half dozen historic underground gold mines of Victoria and contain significant exploration targets. Both mine areas are within 30km of existing and not fully utilised treatment plants.

Work is currently being undertaken to better understand historical mining activities, residual gold resource potential and drill targets at both Ajax and Berringa, with a view to diamond drilling later this year.

This work is being undertaken alongside various work streams in respect of the planned listing.

 

PROJECTS WITH NEXT STEPS TO BE DETERMINED

Project

Latest Position & Key Forward Events

Alamo Gold Project

Arizona, USA

(Gold)

POW: Earn-in to 75%

 

Various technical reports have now been received and reviewed following work undertaken at the Alamo gold project in Arizona.

 

The findings are inconclusive to date and require additional work to be undertaken to further the technical understanding of the project’s potential.

 

We are working with our partners in Arizona to review the technical work required and the costs attaching.  We are also looking at the earn-in which may need to be restructured given the findings thus far.

 

Gawler Project

South Australia

(Gold, Copper)

POW: 100%

The Gawler Project comprises two licence applications (submitted October 2021 and covering 1,994km2) details of which may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/new-australia-copper-gold-opportunity/15189456

 

Recently Power Metal Resources Australia Pty Limited, Power Metal’s wholly owned operating company, was advised that the Department of Energy and Mining (“DEM”) proposed granting of one licence application ELA2021/00163 (999km2) for a period of 6 years.  The initial expenditure commitment for the licence is AUD$100,000 in total over 2 years, and Power Metal has paid AUD$23,055.10 in respect of first year rent and administration fees to the DEM.  The Company now awaits final regulatory sign-off and release of granted licence documentation.

 

Internal technical review by the Power Metal team has been undertaken and an initial exploration programme is being finalised in preparation for the launch of ground exploration following receipt of the granted licence documentation.

 

Power Metal awaits progress with regard to the granting of ELA2021/00162 (995km2)  and will similarly launch planned ground exploration subject to the granting of the licence.

 

Haneti Project

Tanzania

(Polymetallic)

POW: 35% (65% JV Partner Katoro Gold plc LON:KAT)

 

Drill results were announced for the Haneti Project in May 2022.  Drilling identified the targeted nickel, but not in economically significant intersections.  The technical results from the programme are expected to lead to further target development at Haneti for ongoing exploration.

 

In addition data from the programme is now being made available to third parties previously interested in the Haneti project, to augment information previously supplied up to Q1 2020.

 

Power Metal is keen to progress the Haneti project through further targeted exploration and/or corporate activity.

 

Silver Peak Project

British Columbia, Canada

(Silver)

POW: 30%

Liaison with our Canadian partner to finalise commercial initiatives for the project continue.  An important next step is a planned site visit which is scheduled for early August 2022, which is expected to assist expediting matters.

 

NEW OPPORTUNITIES

Project

Latest Position

Power Metal Resources plc

The near-term focus will remain on the exploration of existing interests and the crystallisation of value through the potential listing of spin-out vehicles and project value generative disposals.

The primary acquisition focus for the foreseeable future is uranium projects, however the Company does not rule out other acquisitions of exceptional opportunities.

Power Capital Investments Limited

Global Resource Project Incubator

(Multi-Commodity)

POW: 100%

 

Power Capital Investments  (“Power Capital”) continues to work on a number of initiatives targeting individual or smaller corporate owned opportunities. 

This is occurring against a backdrop of intensive activity across the Power Metal business and will for now remain a modest source of activity as we seek to advance our major business interests.

 

MANAGEMENT – FINANCIAL – COMPLIANCE

Project

Latest Position

Board

 

The Board currently comprises:

Scott Richardson Brown – Interim Non-executive Chairman

Paul Johnson – Chief Executive Officer

Ed Shaw – Non-executive Director

Power Metal has been engaging with a number of potential board candidates for Power Metal and associated companies.

We have successfully secured full boards for Golden Metal and First Development Resources in advance of their planned listings. 

For Power Metal we are undertaking due diligence on new candidates and hope to be in a position to announce new appointments in the near term.

Management and Team

 

Power Metal has built a strong operational team which along with the board now comprises ten team members based out of our UK office. 

We work extensively overseas and have developed equally strong operational partnerships in countries around the world, forming an efficient and cost effective hub-and-spoke operational model.

Power Metal is actively seeking to bring new team members in to support the growth in business and we continue to invite talented individuals from all backgrounds who feel they can contribute to our work to reach out and contact us through the following link:

https://www.powermetalresources.com/join-us/

Financial Position

 

Working Capital

Working capital comprises cash and listed investments (“Working Capital”).

As at 26/07/22 Working Capital amounted to £1.88m. This is available for payment of corporate costs and exploration expenditure across business operations.

Pre-IPO Vehicles

Power Metal has holdings in three current vehicles undertaking a planned IPO which, valued at the historical pre-IPO valuation level, amount to a total value of £6.92m as per the table below:

POW Holding at Pre-IPO Valuation

£

First Class Metals

1,028,766

Golden Metal Resources

3,325,000

First Development Resources

2,562,500

Total

6,916,266

In addition, Power Metal is seeking with JV partners (Red Rock Resources PLC) to undertake a listing of NBGC, the pre-IPO valuation of which is not confirmed at the current time.

The listing of further project packages may be undertaken which will be incorporated into the above list in due course.

Project Investments & Intercompany Loans

As at 30/06/2022 Power Metal’s remaining assets comprising project investments and intercompany loans, amounting to £5.08m.

Future Financing Sources

The Company has multiple sources of additional financing, not all of which may be necessary or occur in the foreseeable future:

–  As an AIM listed vehicle traditional equity financing can be undertaken to raise additional sums where considered necessary.

 

–  Through the exercise of financing and transactional warrants or the exercise of director, team member or adviser options. A full breakdown of all warrants and options outstanding is available on the Company’s website through the following link:

 

https://www.powermetalresources.com/warrants-options-outstanding/

 

–  In addition to the above, the Company will benefit from the planned listings of the pre-IPO vehicles as outlined above which will, if successful and in line with expected valuations on listing, add considerably to overall Power Metal asset value.

 

–  It is anticipated that further value generative events may occur including additional spin-outs into new listed vehicles and outright disposal of certain business interests. 

Audit and Compliance

 

Power Metal with the support of One Advisory, completed its interim results for the half year ended 31 March 2022, which in line with best practice were reviewed for comment by the Company’s auditors PKF. The interim results were published on 27 June 2022.

The Company’s year end is 30 September 2022 and it is expected that the audited financial accounts for the full year will be published in February 2023.

Power Metal is now well advanced with preparation of a new environmental, social and governance (“ESG”) initiative which will include:

–  Appointment of an ESG Officer for Power Metal and all associated companies. 

–  Design, implementation of new and wide ranging ESG policies across the Company and embedded at local project or investment level for all Company activities.

Training of all staff members to develop Company-wide core ESG understanding, with in-depth training where required to maintain optimal ESG capability at all levels.

A separate ESG dedicated announcement will be published by the Company in due course.

 

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

NOTES TO EDITORS

Power Metal Resources plc – Background

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries. 

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes. 

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets. 

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

Exploration work programmes may also be underway within planned IPO vehicles where Power Metal has a material interest the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required:

www.firstclassmetalsplc.com

www.goldenmetalresources.com

www.firstdevelopmentresources.com

Power Metal also holds a material investment in Kavango Resources plc with exploration updates available through their regulatory announcements and on their website:

www.kavangoresources.com

 

Project

Location

Current

POW %

Work Completed or Underway

Results Awaited

Athabasca Uranium

Canada

100%

Hyperspectral data analysis conducted across all 7 properties. Updating to 7 data rooms for third party review.

Finalise review of data from 3 properties.  Prepare for summer exploration programme across 4 properties.

Authier North Lithium

Canada

Earn-in to 100%

Property Evaluation Report completed.

Update covering exploration plans for target areas identified during the Evaluation.

Molopo Farms

Botswana

53%#

Comprehensive data review complete and establishment of data room for third party review.

Finalise next exploration steps and action plan.

Tati Project

Botswana

100%

Site visit with mapping of gold workings and mine dumps.

Exploration planning underway including further mapping, sampling and launch of an RC drill programme.

Victoria Goldfields

Australia

49.9%

Diamond drill programme completed. Review of Ajax & Berringa mine remaining resource potential.

 

Final drill programme results analysis and resource potential analysis from former high-grade producing mines in granted licences.

# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

Power Metal Resources #POW – Uranium Acquisitions – Athabasca Basin Canada

Power Metal Resources plc (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announcesan acquisition of additional uranium properties surrounding the Athabasca Basin in northern Saskatchewan, Canada (the “Acquisition”).

HIGHLIGHTS:

· Power Metal has acquired outright three uranium properties covering 271km2 surrounding the prolific Athabasca Basin in Saskatchewan, Canada.

· The cost of the Acquisition is CAD$137,500 (£88,872) payable as CAD$25,000 (£16,158) cash and CAD$112,500 (£72,714) through the issue of 5,703,599 new ordinary shares of 0.1p in the Company (“Ordinary Shares”) at an issue price of 1.275p.

· The Acquisition increases Power Metal’s Athabasca uranium interests to 10 properties covering an area totalling 721km2.

· Planning is nearing completion for the ground exploration programmes to commence in the near term at the Tait Hill, Soaring Bay, Clearwater and Thibault Lake uranium properties, further information in respect of which was announced on 12 July 2022.

· In addition to exploration of retained uranium projects, the Company is working on corporate options in relation to certain of its Athabasca uranium interests.

Paul Johnson, Chief Executive Officer of Power Metal Resources commented:

“We have acted quickly to secure this additional uranium package in the Athabasca Basin area of Saskatchewan, Canada. With these acquisitions our portfolio of 10 properties now covers a combined total footprint of 721km2.  The scale of this holding presents a significant project package especially given the importance of the highly prospective uranium exploration in the region. We are also looking to add further ground to our holdings.

However, that said, it is not merely a move to scale that we seek, but a strategic uranium package enabling us to develop a combination of internal exploration projects, and to generate value through the commercialisation of certain of the properties.

This is the essence of the Power Metal business with metal discoveries through exploration, combined with corporate activity to build balance sheet strength.  Both strategies individually can potentially deliver significant value for shareholders, and together they represent a powerful combination.

Further news updates covering our uranium interests are expected in the near future.”

TRANSACTION TERMS

Power Metal has acquired a 100% interest in three uranium exploration properties Reindeer Lake, Old Woman Rapids and Porter Lake as detailed in Table 1 below (the “Properties”).

The vendors of the Properties (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was previously the vendor of the Schreiber-Hemlo properties that Power Metal sold in exchange for a strategic shareholding in First Class Metals plc, as announced on 7 September 2021.

As consideration for the 100% acquisition of the properties, Power Metal will pay the Vendors a total of CAD$137,500 (£88,872) (the “Consideration”).

The Consideration is payable as CAD$25,000 (£16,158) cash and CAD$112,500 (£72,714) through the issue of 5,703,599 new Ordinary Shares of 0.1p at an issue price of 1.275p (“Acquisition Shares”).  Acquisition Shares will be held for at least 4 months from the date of this Agreement unless Vendors and Power Metal agree otherwise in writing.

NEW PROJECT ADDITIONAL INFORMATION

Porter Lake Uranium Property Overview

· The Porter Lake uranium Property is located approximately 60km south of Sandy Lake, Saskatchewan, and is less than 35km west of the all-season Provincial highway 914 which services the Key Lake and McArthur River uranium mines located northeast of the Property. The Property shares an extended claim border with Canadian listed ALX Resource Corp. (CSE: AL).

· The Property covers 108.54 km2 and is less than 1km southwest along strike of Baselode Energy Corporation’s Catharsis Project. The Porter Lake Property is located near to the geological contact between the Western Wollaston and Mudjatik domains – two highly prolific geological domains where over 2 billion pounds of Triuranium Octoxide (U308) have been discovered.1

· Multiple uranium-rich occurrences have been discovered within the Property including a large (610m) radiometric anomaly, outlined in the Government of Saskatchewan 1954 airborne geophysical survey that was later drill tested by Nova Uranium Mines Ltd. in 1955 and which returned drill intercepts of up to 0.21% U308 over 0.6m.

Old Woman Rapids Uranium Property Overview

· The Old Woman Rapids Property is located approximately 80km northeast of Buffalo Rapids, Saskatchewan, and is less than 60km west of the all-season Provincial highway 914 which services the Key Lake and McArthur River uranium mines located northeast of the Property. 

· The Property covers 129.58 km2 and is located less than 25km southwest along strike of Baselode Energy Corporation’s Catharsis Project. Like the Porter Lake Property the Old Woman Rapids Property is located near to the prospective geological contact between the Western Wollaston and Mudjatik domains.1

· Multiple uranium-rich occurrences have been discovered within the property including rock grab samples that returned assays of 0.57% and 0.43% U308 and 0.66% and 0.80% Thorium Dioxide (ThO2) respectively.

Reindeer Lake Uranium Property Overview

· The Reindeer Lake Property is located approximately 30km north of Southend, Saskatchewan, and less than 15km west of the all-season Provincial highway 905. The Property shares a claim border with privately owned Ripple Exploration Limited’s Williams Lake Property. 

· The Property covers 33.66 km2 and is centred around the Saskatchewan Mineral Deposit Index (SMDI) Porter Lake Uraniferous Pegmatite showing.

· Several uranium-rich occurrences have been discovered within the Property including rock grab samples that returned values of up to 0.084% U308. The samples were taken following the completion of an airborne radiometric survey in 1969 carried out by Sunlite Oil Company Limited that outlined multiple anomalies around the shores of Porter Lake. Uranium Bloom was noted at several localities around the lake which were coincident with the airborne anomalies identified.

 

URANIUM PROPERTIES – HOLDING STRUCTURE

Power Metal has a 100% subsidiary Power Metal Canada Inc (“Power Canada”), which acts as the holding Company for certain Canadian project operations. Power Canada has a wholly owned subsidiary, 102134984 Saskatchewan Ltd, which is the holder of the Company’s Athabasca uranium portfolio.

Table 1: 102134984 Saskatchewan Ltd., Athabasca Basin Property Holdings*

 

Project

Licence ID

Area

(Hectare)

Area

(km2)

Clearwater Uranium Property

MC00015079

1,110

11.1

MC00015083

563

5.63

MC00015082

3,191

31.91

MC00015151

760

7.6

MC00015646

761

7.61

MC00015658

1,541

15.41

Tait Hill Uranium Property

MC00015078

1,576

15.76

MC00015081

968

9.68

MC00015153

1,530

15.3

MC00015152

1,886

18.86

MC00015647

725

7.25

MC00015648

1,129

11.29

Thibaut Lake Uranium Property

MC00015077

2,206

22.06

MC00015659

2,195

21.95

Soaring Bay Uranium Property

MC00015080

1,255

12.55

MC00015155

3,375

33.75

MC00015874

748

7.48

MC00015875

2,529

25.29

Cook Lake Uranium Property

MC00015212

984

9.84

E-12 Uranium Property

MC00015213

1,323

13.23

Reitenbach Uranium Property

MC00015214

2,135

21.35

MC00015474

1,235

12.35

MC00015655

4,570

45.7

MC00015656

5,322

53.22

MC00015657

856

8.56

MC00015824

528

5.28

Reindeer Lake*

MC00015522

3,336

33.36

Porter Lake*

MC00015561

5,656

56.56

MC00015562

5,198

51.98

Old Woman Rapids*

MC00015563

4,851

48.51

MC00015564

5,063

50.63

MC00015565

3,044

30.44

Total Licence Holding Area

72,149

721.49km2

* Property acquisition announced today – licence transfers in progress 

References

1 – https://baselode.com/projects/catharsis-project/

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 5,703,599 Acquisition Shares to be admitted to trading on AIM which is expected to occur on or around 2 August 2022 (“Admission”). The Acquisition Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

Following Admission, the Company’s issued share capital will comprise 1,537,512,064 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

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:

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

 

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