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#POW Power Metal Resources PLC – Strategic Uranium Properties Staked – Athabasca

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

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

The uranium acquisitions by staking announced today are a further leap forward for Power Metal’s strategic uranium interests in and surrounding the prolific Athabasca Basin located in northern Saskatchewan, Canada.

The two new properties now secured are adjacent to and largely surrounded by major uranium companies and they demonstrate significant uranium prospectivity with geology considered by the Company to be analogous to major producing mines and other uranium deposits within the Athabasca Basin.

Power Metal started the move to build a uranium exploration business in September 2021 and we believe we are now in a particularly strong position. Our intentions do not stop here, with plans to further expand our uranium focused interests where suitable opportunities are identified.

Uranium has a strong following in capital markets and recently the spot uranium price has moved again above USD$50/lb. With the world dynamic shifting strongly in favour of nuclear power generation we believe that Power Metal should continue this push to build its uranium exploration and development business interests in the London financial markets.

HIGHLIGHTS:

All claims were acquired by direct mineral claim staking by the Power Metal technical team. They were acquired during the most recent Mineral Administration Registry Saskatchewan (“MARS”) electronic registry system claim reopening on 31 January 2023. The staking acquisitions represent some of the most significant additions to the Company’s uranium portfolio. Further information on the staking process can be found in the further information section below.

The newly acquired Haresign Bay uranium Property (“Haresign Bay”) covers a total area of 3,189.2-hectares (31.89km2) located 35km south of the Athabasca Basin. Haresign Bay is surrounded by claims held by uranium focussed companies F3 Uranium Corp, Baselode Energy Corp, CanAlaska Uranium Ltd and Skyharbour Resources Ltd.

The newly acquired Kernaghan uranium Property (“Kernaghan”) covers a total area of 4,566.2-hectares (45.66km2) within the northeastern edge of the Athabasca Basin. Kernaghan is bordered on three sides by claims held by uranium focussed companies including Standard Uranium Ltd., IsoEnergy Ltd., and Purepoint Uranium Group Inc.

During the most recent claim reopening, Power Metal also staked an additional 1,982-hectare (19.82km2) claim area bordering the western extension of its Thibault Lake uranium Property (the “Extension”). Significantly, the Extension covers a historical showing which returned a trenching result of 1.09% U308 over 10.7m, greatly increasing the overall prospectively of the extended Thibault Lake uranium Property. 2

With the addition of the Kernaghan and Haresign Bay uranium properties, as well as the additional staking at Thibault Lake, the Power Metal Athabasca uranium portfolio now consists of fourteen properties, including two conditional disposals1, with a combined total area of 940km2.

FURTHER INFORMATION

Mineral Claim Staking Process

The mineral claims constituting the Haresign Bay and Kernaghan Uranium Properties as well as the Thibault Lake Extension were acquired directly through the Mineral Administration Registry Saskatchewan (“MARS”) electronic registry system.

Where a previous claim owner is unable to satisfy the claim maintenance requirements, that ground is reopened to third party staking at a set time each month. Select reopening’s are often highly competitive with many parties attempting to acquire the newly available land.

The total cost of staking was CAD$5,842.34. The newly staked licences come with a two-year term with no minimum spend requirement and which can then be extended for subsequent years by spending a minimum of CAD$146,059 per annum.

The Haresign Bay Property

Haresign Bay is located 43km south of Cameco Corporation’s Key Lake Uranium Mine which is the third largest deposit within the Athabasca Basin – with an average mineable grade of just over 2% U3O8.1 Haresign Bay is located 35km south of the Athabasca Basin, along the Key Lake trend, which is defined by a cluster of northeast-southwest trending electromagnetic conductors which extend to the northeast over the Key Lake Mine. The Key Lake trend is a defining geophysical and geological trend within the Athabasca Basin, and Haresign Bay represents a significant position held within this important uranium-rich corridor.

The Upper Roberta Lake Target (“Upper Roberta Lake” or the “Target”) is located in the southwestern part of the Haresign Bay Property and is defined by a gravity low anomaly which is coincident with elevated Radon222-in-lake water results. This Target area is further intersected by multiple electromagnetic conductors of part of the Key Lake Trend. Upper Roberta Lake represents a highly compelling target for future work.

The Kernaghan Property

Kernaghan is located within the prolific Athabasca Basin approximately 13km from the Basin’s edge. Based on nearby borehole’s drilled by Denison Mines Corp., the sandstone-basement unconformity on the Property is expected to be at around 100m depth.

The Kernaghan Property covers multiple anomalous Radon222-in-lake water results which are oriented within a northeast-southwest trending belt. This trend is coincident with a magnetic low feature. Kernaghan represents the Company’s third property which is located entirely within the Athabasca Basin.

Thibault Lake West Extension

The Extension covers an additional four Saskatchewan Mineral Deposit Index (“SMDI”) points. These SMDI points cover multiple high-grade uranium showings including a north trending zone of strong uranium mineralisation from which historic trenching returned 10.7m of 1.09% U308.2 Several other high-grade uranium showings are covered by the Extension including grab and/or channel samples which returned 4.8%, 1.75%, 0.71%, and 0.66% U308.3,4

Next Steps

The Company is preparing fact sheets which will include further information and maps for newly acquired staking. These will be released to the market once ready. Furthermore, detailed data rooms are being prepared.

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.

The Power Metal Canada Uranium Property Map is available to view at the following link:

https://www.powermetalresources.com/power-metal-canada-uranium-map/  

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

MC00016158

3,242

32.42

Thibault Lake Uranium Property

MC00015077

2,206

22.06

MC00015659

2,195

21.95

AC00018709

1,982

19.82

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 Property5

MC00015213

1,323

13.23

Reitenbach Uranium Property6

MC00015214

2,135

21.35

MC00015474

1,235

12.35

MC00015655

4,570

45.7

MC00015656

5,322

53.22

MC00015657

886

8.86

MC00015824

528

5.28

MC00016155

1,333

13.33

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

Durrant Lake

AC00018000

5,866

58.66

Badger Lake

MC00016253

1,671

16.71

Haresign Bay

AC00018692

3,189

31.89

Kernaghan

AC00018694

4,566

45.66

Total Licence Holding Area

93,998

939.98km2

#POW Power Metal – Total Voting Rights

Power Metal Resources plc (“Power Metal” or the “Company”)

Total Voting Rights

In accordance with the Financial Conduct Authority’s Disclosure and Transparency Rules, the Company hereby announces that as at 31 January 2023 there were 1,727,574,806 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 1,727,574,806.

The above figure of 1,727,574,806 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.

#POW Power Metal Resources PLC – Tati Project, Botswana – 2023 Exploration Underway

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces next stage exploration on its 100% owned and operated Tati Gold Project (“Tati” or the “Project”) located within the Tati Greenstone Belt near Francistown, Botswana, is underway.

EXPLORATION PROGRAMME KEY OBJECTIVES

–      To confirm the presence of a large gold-bearing system and delineate a deposit, through follow-on work over a larger portion of the approximately 8km long gold-in-soil anomaly.

–      Through Power Metal’s largest and most comprehensive exploration campaign across the Tati Project, to date.

 Programme will include mechanised trenching, geophysics surveys, high-resolution geochemical surveys, reverse circulation (“RC”) drilling and diamond core drilling.

 Both geophysical survey work and mechanised trenching are currently underway, with further soil sampling scheduled and RC and diamond drilling to follow on in order to test the emerging high priority gold targets.

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

The exploration campaign now underway is a key step forward for Power Metal with the various planned works tailored towards a single objective, namely the discovery of a large gold deposit.

Our exploration programmes in 2021 and 2022 have built a robust picture of the Project’s potential and we are particularly excited as we proceed with the next stage of exploration – the largest ever completed on the Project by Power Metal.

So far, we have confirmed near surface high-grade gold from reverse circulation drilling, conducted last year, which intersected the quartz reef structure near the Cherished Hope mine and delivered high-grade and bonanza-grade gold results. Figure 1 below provides an overview of those results.

Within the table immediately below is an overview of the work we are planning to undertake, with explanatory notes on the various steps to be implemented.”

EXPLORATION PROGRAMME OVERVIEW

Exploration Work

Rationale and Targeted Outcome

TRENCHING

A circa 500 metre mechanised trenching programme (underway).

Trenching will be focused along various strike-length extensions of the known outcropping gold mineralised quartz reef structure.

Quartz reef as well as mineralised wall rock will be sampled when intersected within the exposed trenches.

This work will look to extend the already known strike length extension of the main quartz reef structure at the Cherished Hope gold mine (the “Cherished Hope”) within the Project licence area. The quartz reef currently remains open towards the northwest and southeast as well as down dip.

If the main quartz reef is successfully intercepted, the trenching would highlight quartz reef continuity between known historical workings at Cherished Hope, as well as to the northwest and southeast of current (~175m) strike length extents as defined by the recently completed RC drilling campaign.

By extending the surficial expression of the mineralised quartz reef structure beyond the currently defined 175m strike length, Power Metal will be able to follow up drill test these areas to prove the downdip continuity, therefore increasing the size of the mineralised system in multiple dimensions.

SOIL GEOCHEMISTRY

High-resolution soil geochemistry programme focussed on approximately 3km of strike-length (see red area highlighted on figure 1 below).

Approximately 500-600 individual soil samples are planned with follow up assay testing of samples.

Soil samples will be collected along a grid which will be focussed northwest of the 2022 RC drilling area. The goal is to improve the resolution and definition over several kilometres of the currently defined ~8km long gold-in-soil anomaly.

Historical soil sampling completed over the majority of the Tati Project was undertaken by previous operators along 400m spaced lines at 40m sample spacing.

This programme looks to infill the line spacing so that the definition and location of already proven Au-in-soil anomalies is vastly improved.

This work will then allow Power Metal to follow up with more focussed next exploration steps which could include trenching and RC drilling of these new areas during subsequent work programmes.

By completing this work, a much larger percentage of the 8km long Au-in-soil anomaly can move to next exploration steps therefore increasing the overall attractiveness of the Project as well as the size of the mineralised footprint.

GEOPHYSICS

A ground magnetometer geophysics survey focussed on the northwestern strike length extension of the Cherished Hope Mine (underway).

The goal of the magnetometer survey is to provide high-resolution imaging of any structures or geology which may have had an influence on the emplacement of mineralised quartz reef structures.

Prospective structures and geology identified by the magnetometer survey can then be upgraded to further work streams which may include geochemical sampling, trenching and RC & diamond drilling.

REVERSE CIRCULATION (“RC”) DRILLING(1)

~15 RC drillholes are planned to an average planned  depth of ~100m for ~1,500m in total.

This RC programme is designed to test for the along strike and down dip extension of the main mineralised quartz reef structure.

The mechanised trenching programme will be completed prior to the RC drilling and will look to extend the known surficial expression of the mineralised quartz reef structure. Once the surface expression is well defined by trenching, RC drilling will be employed in order to test for the down dip or depth extension of the quartz reefs within the subsurface.

The goal is to prove continuity in the widths as well as grades of the quartz reef structure from surface down to depths targeted by the RC drilling.

DIAMOND CORE DRILLING(2)

~5 diamond drill holes are planned to an average expected depth of 100m for ~500m in total.

The diamond drilling programme is designed to drill test select portions of the quartz reef structures which were previously successfully delineated by the RC drilling conducted during fall 2022.

Diamond drilling provides full core rock samples, and therefore valuable information about structure, geology, and the nature of gold mineralisation.

The information extracted from diamond drilling will allow the company to gain a better understanding of the mineralised quartz reefs and surrounding wall rocks. This data will be important as exploration continues to develop across the broader Tati Project.

KEY:

(1)  RC drilling involves a “hammer” piston which repeatedly strikes the target rock. Simultaneously, a powerful drill-bit at the end made of tungsten rotates at high speed. This creates small chips of rock known as drill cuttings that are sucked up with a vacuum and transported to a cyclone at the surface through dedicated tubes. The chips are then sorted into a variety of sampling bags, each of which represents a certain depth section of the drill hole. These bags are then sent off directly to the assay lab where their mineral content can be analysed. In turn, a picture of the rock types the hole encountered throughout its length can be established.

(2)  Diamond core drilling involves rotating a hollow drill bit embedded with diamonds into the ground to a certain depth before extracting the solid, intact core recovered for analysis.

FURTHER INFORMATION

Figure 1 – Tati Project Overview Plan Map:

 

 

Figure 2 – Tati Project Q3 Drilling Area Zoomed Plan Map:

QUALIFIED 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 Qualified 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 PLC – £900,000 Equity Financing

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces it has completed a placing and subscription to raise £900,000 before expenses (the “Financing”).

HIGHLIGHTS

§ Power Metal has raised £900,000 before expenses for the advancement of priority exploration projects and for general working capital purposes with the Financing undertaken at the closing market bid price of 1.4 pence on 13 January 2023 (see below for detailed Financing terms).

§ The fundraising will be applied to a comprehensive exploration programme at the Tati gold project and will allow Power Metal to accelerate preparations for exploration at the Company’s strategic uranium portfolio in the Athabasca Basin region of Saskatchewan, Canada.

§ At Tati the Company’s exploration plans include soil geochemistry, geophysics, mechanised trenching, reverse circulation (RC) and diamond drilling.  This work will examine near surface gold mineralisation across a far larger proportion of the 8km gold-in-soil anomaly which extends through the centre of the Tati licence footprint and, through planned drilling, test for gold mineralisation at depth.

§ Power Metal is seeking to undertake exploration programmes at a number of its Athabasca uranium properties during the upcoming spring and summer, following snowmelt. The work programmes will be designed to follow up on high-grade uranium rock sample results achieved by the Company during the 2022 campaigns, as well as inaugural work programmes at other properties in the portfolio which have not been worked by Power Metal to date.

§ Diamond drilling has recommenced at the Molopo Farms Complex project in Botswana after the Christmas break and specifically at drillhole DDH2-3A into target area T2-3A. In addition, at the Company’s Victoria Goldfields joint venture a diamond drill programme is underway targeting extensions of the former high-grade working Berringa gold mine.

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

Power Metal continues to drive its exploration portfolio, with drilling underway currently and with additional programmes now to be launched in the near term at the Tati gold project in Botswana and expedited exploration at the Athabasca Uranium portfolio in Saskatchewan, Canada.

With multiple exploration work streams underway Power Metal expects to release further updates to the market over the coming weeks and months as operational activities advance.

In parallel Power Metal continues to work on the various corporate initiatives targeting the generation of material value for the Company and its shareholders.

The recent strong move higher in the price of gold from under US$1,650 at the start of November 2022, to US$1,920 at the close on Friday is an important event, with gold acting as a key indicator for the strength of our sector. I believe the future is bright for the junior resource sector and the proactive junior resource explorers within it.

Power Metal has, through relentless teamwork over recent years, built and advanced our global exploration portfolio and we believe that work has positioned the Company uniquely well for the near, medium and long term.

FINANCING FURTHER INFORMATION

§ The Company has raised £900,000 before expenses through the issue of 64,285,714 new ordinary shares of 0.1p each in the Company (the “Financing Shares”) at an issue price of 1.4p per share, the closing market bid price on 13 January 2023.

 

§ Each Financing Share has an attaching warrant to subscribe for one new ordinary share of 0.1p each in the Company (“Ordinary Share”) at an exercise price of 2.0p per share with a 24-month term from 30 January 2023 (“Financing Warrant”) creating 64,285,714 Financing Warrants.

 

§ Should the Power Metal share price exceed a volume weighted average share price of 6p for five trading days Power Metal may issue a written notice to Financing Warrant holders providing ten trading days to exercise Financing Warrants and twenty trading days to make payment of exercise monies, or the Financing Warrants may be cancelled.

 

§ The Financing was undertaken by the Company’s joint broker First Equity Limited.  Power Metal has issued First Equity Limited with 6,428,571 warrants to subscribe for new Ordinary Shares on the same terms as the Financing Warrants.

 

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 64,285,714 Financing Shares to be admitted to trading on AIM which is expected to occur on or around 30 January 2023 (“Admission”). The Financing 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 1,727,574,806 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.

 

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 – Acquisition – Canadian Graphite Project

Power Metal Resources PLC (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the acquisition of the 4,222-hectare Doerksen Bay graphite Project (“Doerksen Bay” or the “Project”) located in mining friendly Saskatchewan, Canada. Power Metal also announces the formation of ION Battery Resources Limited, a new UK private battery metals and minerals focused vehicle.

HIGHLIGHTS

· The acquisition of Doerksen Bay gives Power Metal shareholders exposure to the exciting graphite space, a key component in new age battery technology.

· Graphite flake prices are trading near to historic highs, and tight supply is expected to underpin the graphite market into 2023.1

· Historical rock samples from Doerksen Bay have returned graphite grades of up to 45% carbon (C) from coarse-grained graphitic gneiss 2.

· The Project complements the Company’s Authier North/Duval East as well as North Wind lithium projects which are all to be held within a newly incorporated special purpose battery commodities vehicle, ION Battery Resources Limited.

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

“The acquisition of Doerksen Bay brings a potential high-grade graphite opportunity into the Power Metal portfolio.

This acquisition enables us to create critical mass in specialist battery commodities, through the formation of a new holding company ION Battery Resources Ltd which we plan to hold Doerksen Bay, together with the Company’s two existing Canadian lithium interests.

We are continuing our desktop research for the Project with a view to designing ground exploration to test the extremely high-grade graphite occurrences reported from the Project as soon as weather conditions and team availability allows.”

ACQUISITION TERMS

The vendors of the Project (the “Vendors”) are a consortium led by established local prospector Brian Fowler. Mr. Fowler 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 and the Reindeer Lake, Porter Lake and Old Woman Rapids uranium properties as announced on 26 July 2022.

As consideration for the 100% acquisition of the Project, Power Metal will pay the Vendors a total of £37,500 (the “Consideration”).

The Consideration is payable through the issue of 2,500,000 Power Metal new ordinary shares of 0.1p each (“Consideration Shares”) at an issue price of 1.5p per share. The Consideration Shares will be subject to a 4-month lock-in from today’s date.

PROJECT INFORMATION

Doerksen Bay is located 230km northeast of La Ronge, Saskatchewan. The Project is centred around five Saskatchewan Mineral Deposit Index (“SMDI”) graphite occurrences including the Ben, Ben North, Bear Bones, Brabant Lake and Doerksen Bay showings.

These occurrences returned multiple grab samples of graphite bearing gneisses including assays up to 45% C (incl. 45%, 36%, 14%, 13%, 12% and 10% C).

A modern airborne geophysical survey was carried out over the Project in 2013, which highlighted numerous untested very-low-frequency electromagnetic (“VLF-EM”) conductors. Graphite is a known conductor, and the SMDI graphite occurrences on the Project are broadly coincident with the VFL-EM conductors. As a result, the recently identified conductive anomalies may be related to additional undiscovered high-grade graphite bearing gneiss units and ground-truthing them will be a priority of future work programmes undertaken by Power Metal planned for 2023.

NEW VEHICLE

Power Metal has formed a new wholly owned UK private subsidiary ION Battery Resources Limited (“ION Resources”), which will act as a holding company (through 100% owned Canadian operating vehicles) and through which we plan to hold the Company’s battery resources exploration interests including Doerksen Bay (graphite), Authier North/Duval East (lithium) and the North Wind (lithium).

ION Resources will focus on battery metals and minerals and will house the Company’s current graphite and lithium interests in Canada as outlined above, as well as any future potential acquisitions in the battery metal space including lithium, graphite and potentially vanadium.

After a suitable period of structuring, exploration and development, ION Resources will be available for outright disposal or listing on an appropriate stock exchange.

QUALIFIED 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 Qualified 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.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 2,500,000 Consideration Shares to be admitted to trading on AIM which is expected to occur on or around 11 January 2023 (“Admission”). The Consideration 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 1,663,289,092 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.

References:

1: https://www.argusmedia.com/en/news/2403887-tight-supply-to-underpin-china-graphite-market-in-2023

2:  Gneiss: a foliated (banded) metamorphic rock that is formed by high-temperature and high-pressure metamorphic processes acting on formations composed of igneous or sedimentary rocks.

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 – Insider Warrants & Options – Final Extension

Insider Warrant Update

In the December 2019 financing undertaken by the Company participants received warrants to subscribe for new ordinary shares of 0.1p in Power Metal at an exercise price of 0.7p per share with an expiry date of 17 December 2021 (“December 2021 Warrants”), which warrant exercise period was subsequently extended to 17 March 22, then 17 June 2022 and lastly to 31 December 2022 (see announcement 17 June 2022).

As at the expiry date Paul Johnson, Chief Executive Officer of the Company and Ed Shaw, Non- executive Director (together the “Insider Directors”) held the following December 2021 Warrants (“Insider Warrants”):

Warrant Holder

N umber of Warrants

Exercise Price

Paul Johnson

6 ,250,000

0.7p

Ed Shaw

5 ,000,000

0.7p

 

The Insider Warrants were issued following participation in the December 2019 financing.

The Insider Directors are unable to exercise the Insider Warrants due to activities underway within the Company which preclude exercise at this time.

Under the December 2021 Warrant instrument Clause 2.3 provides that should any December 2021 Warrant holder be in the possession of price sensitive information and be thereby precluded from exercising warrant subscription rights, the exercise period shall be extended until 20 business days following the date on which the warrant holder ceases to be an insider.

The Insider Warrants will be automatically extended under clause 2.3 as outlined above, subject to the Final Extension outlined below.

 

Insider Option Update

On 15 February 2019 Paul Johnson, Chief Executive Officer of the Company was awarded 13,613,929 options to subscribe for new ordinary shares of 0.1 pence each in the Company at an exercise price of 1.0p (“Director Options”).  The Director Options had an original expiry date of 15 February 2022, which was subsequently extended to 15 May 2022 and then 31 December 2022 (see announcement 17 May 2022).

 

Paul Johnson is unable to exercise the Director Options due to activities underway within the Company which preclude exercise at this time.

Under the Director Option agreement clause 3.5 states:

 

“In the event the Option Holder is in possession of relevant price sensitive information or is restricted from dealing pursuant to the provisions of the Market Abuse Regulations or by any other share dealing code, applicable law or regulation and is thereby precluded from exercising the Options or any part thereof immediately prior to the Final Exercise Date, then the Final Exercise Date shall be deemed to be extended until the date which falls 10 business days after the later of the date on which the Option Holder ceases to be an insider or the date on which the close period or other prohibited period ends or is otherwise no longer prohibited.”

 

The Director Options will be automatically extended under clause 3.5 as outlined above, subject to the Final Extension outlined below.

 

Final Extension to Insider Warrants and Options

It is the Directors’ intention to exercise the Insider Warrants and the Director Options as soon as they are able to do so and the Directors expect to be in a position to exercise in the foreseeable future.  Reflecting this the Company has granted a final extension to the Insider Warrants and Director Options to 30 June 2023 and should they be unexercised by or on that date, they will lapse (the “Final Extension”).

Related Party Note

The extension of the Insider Warrants and Director Options held by Paul Johnson, and the Insider Warrants held by Ed Shaw as outlined above, have been treated as a related party transaction pursuant to AIM Rule 13 of the AIM Rules for Companies.

Scott Richardson Brown and Owain Morton, being the independent Directors for the purposes of the extension of the expiry date of the Insider Warrants and Director Options held by Paul Johnson and the Insider Warrants held by Ed Shaw consider, having consulted with the Company’s nominated adviser, SP Angel, that the final extension of the expiry date to 30 June 2023 of the Insider Warrants and Director Options held by Paul Johnson, and the Insider Warrants held by Ed Shaw, to be fair and reasonable insofar as the Shareholders are concerned.

 

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.

Alan Green & Mark Fairbairn discuss stock picks for 2023, incl #PREM, #GCAT, #MARU, #FCM, #TEK, #GRX, #ECR, #POW & #TMOR on this week’s Stockbox Research Talks

Alan Green & Mark Fairbairn discuss stock picks for 2023, incl #PREM, #GCAT, #MARU, #FCM, #TEK, #GRX, #ECR, #POW & #TMOR on this week’s Stockbox Research Talks

#POW Power Metal Resources PLC – Commercial Update

Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a commercial update providing the latest position in respect of various corporate activities recently completed or underway.

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

“I am a resolute believer in the junior resource sector and its ability to deliver considerable returns for investors. The sector is, ultimately, driven by cyclicity caused by shifting supply and demand fundamentals for the underlying metals.

Over the past 4 years, Power Metal has assembled a unique and diverse global project portfolio which is ready for what I believe will be a longstanding and robust bull market for junior resource companies.

After a long-sustained bear market for resource juniors, I believe that the sector recovery has now begun as demonstrated by rising metal prices and the evident growing demand for metals in most industrial settings and for investment security.

In the last 6 months we have seen the IPO of Power Metal investee company First Class Metals PLC and completion of the Kanye Resources disposal to Kavango Resources PLC. These two transactions alone brought additional listed securities into the Power Metal portfolio that are together currently worth c.£4.1m (at the mid-market price on 21.12.22 market close).

Below you will see a further five transactions which each have the potential to add considerably to the Power Metal balance sheet. This corporate activity will complement our ongoing and successful exploration work at the Molopo Farms Complex and Tati Gold projects both located in Botswana and our Athabasca Basin uranium interests in Canada.

I would like to thank our professional teams for working so diligently on multiple complex transactions and positioning us where we are today.  I also want to thank our shareholders who have stayed with us, through this challenging part of the cycle, patiently supporting us while we continue to push the business forward in advance of the next bull market.

We approach the Christmas and New Year break with a heightened sense of excitement and optimism for 2023 and beyond.”

 

Company/Operations

POW %

Status

First Class Metals PLC (LON:FCM)

Exploration in the Schreiber-Hemlo region of Ontario, Canada.

www.firstclassmetalsplc.com

27.91%

Following the disposal of Power Metal’s Schreiber-Hemlo interests to FCM in September 2021, FCM successfully secured admission to the Official List (by way of a Standard Listing under Chapter 14 of the Listing Rules), on 29 July 2022.

Power Metal holds a total of 18,516,097 FCM shares, which are subject to a hard lock-in agreement until 29 July 2023, with a further 12-month orderly market arrangement thereafter. The Company also holds 517,705 warrants to acquire new FCM ordinary shares at a price of 10p and with an expiry date of 29 July 2023.

At the closing market mid-price of 17p on 21 December 2022 the value of Power Metal’s shareholding in FCM is £3,194,027.

Kavango Resources PLC (LON:KAV)

Exploration in Botswana

www.kavangoresources.com

9.85%

Following completion of the disposal of Power Metal’s interest in the Kanye Resources joint venture back to partner KAV, as announced in November 2022, Power Metal’s interests in KAV, which is also on the Official List of the London Stock Exchange, include:

–           69,500,000 KAV ordinary shares.

–           Warrants to acquire 4,750,000 KAV ordinary shares at a price of 2.5p (expiry April 2023)

–           Warrants to acquire 30,000,000 KAV ordinary shares at a price of 4.25p (expiry January 2025)

–           Warrants to acquire 30,000,000 KAV ordinary shares at a price of 5.5p (expiry January 2025)

In addition, Power Metal holds a 1% net smelter return (“NSR”) royalty across all Kanye Resources properties as at 8 July 2022.

At the closing market mid-price of 1.5p on 21 December 2022 the value of Power Metal’s shareholding in KAV is £1,042,500.

Golden Metal Resources PLC (GMT)

Exploration and development in Nevada, USA.

www.goldenmetalresources.com

83.13%

During 2021, Power Metal acquired outright three projects located in Nevada, USA (Pilot Mountain, Garfield and Stonewall) and secured an option to acquire a 100% interest in a fourth project (Golconda Summit).

The projects were acquired through GMT, then a wholly-owned subsidiary of Power Metal and a vehicle incorporated in advance of a planned listing in the London capital markets.

A subsequent Pre-IPO financing for GMT raised £750,000 before expenses.

Power Metal currently holds 49,874,437 GMT shares or 83.13% of GMT issued share capital.

GMT has now completed the pre-IPO work required and a listing document has now been prepared (subject to final data additions) and the IPO financing is underway.

A series of roadshow meetings have been undertaken with interested parties including institutions based in Canada and the UK and to date the GMT business model and listing proposal has been well received. These meetings will continue over the coming weeks and into the new year, allowing those with conflicts during the holidays to finalise their interest in the IPO early in the new year.

GMT is looking to complete the IPO Financing and, subject to standard regulatory approvals, the final listing steps in early 2023.

First Development Resources PLC (FDR)

Exploration in Western Australia and the Northern Territory of Australia.

www.firstdevelopmentresources.com

62.12%*

During 2021. Power Metal acquired three exploration projects in Western Australia (Wallal, Braeside West and Ripon Hills),

The projects were acquired through FDR, then a wholly-owned subsidiary of Power Metal and a vehicle incorporated in advance of a planned listing in the London capital markets.

Subsequently, in 2021, FDR acquired an additional exploration project in the Northern Territory of Australia (Selta). 

Additional commercial transactions were undertaken by FDR in 2022 with the acquisition of a 100% interest in Pardoo Resources Pty Ltd (a project holding company) and the purchase of NSR royalties retained by the vendors of the vehicles holding the above projects.

Power Metal currently holds 38,605,697 FDR shares or 62.12%* of FDR issued share capital.

FDR is nearing completion of all the IPO work streams and is finalising the listing document in preparation for a planned IPO financing roadshow which is expected to commence in early 2023. 

New Ballarat Gold PLC (NBGC)

Exploration in the Victoria Goldfields of Australia.

https://www.powermetalresources.com/project/victoria-goldfields/.

49.9%

In 2020 Power Metal established a joint venture with Red Rock Resources PLC (LON:RRR) focused on exploration projects in the Victoria Goldfields, Australia.

The joint venture has secured a ground footprint in the Victoria Goldfields comprising 1,841km2 of granted licences and 493km2 of exploration licence applications awaiting grant.

The footprint includes two former high-grade working gold mines (Ajax and Berringa), with Berringa currently the subject of an ongoing diamond drilling programme.

A National Instrument 43-101 technical report has been prepared covering 7 of the licences, as an underlying document in preparation for listing of NBGC.

The joint venture has a local operational team and is based out of Ballarat, Victoria.

Across the footprint extensive evidence of historical gold workings exist, and outside of the footprint boundaries numerous positive exploration updates have been noted by fellow exploration companies. 

For example, we note recently the discovery of extensive gold mineralisation by Southern Cross Gold Ltd (a spin-out listing from Mawson Gold Ltd) included an intersection of 305.8m at 2.4g/t gold at their Sunday Creek project situated 5km east of the Kilmore project held by NBGC. Link here:

https://wcsecure.weblink.com.au/pdf/SXG/02612149.pdf

With the increasing confidence in the market and support for high-quality gold exploration investment opportunities, Power Metal is working with partner Red Rock Resources PLC to identify the best commercial structure and expeditious pathway to enable the planned listing to proceed.

NewCo

Exploration in Queensland’s Mount Isa copper belt and in South Australia.

NewCo to be incorporated shortly to allow the merger of three companies and their interests in South Australia and Queensland as per POW RNS 15.12.22).

NewCo website under development.

20%^

Power Metal announced on 15.11.22 the merger of its wholly owned Australian holding company which holds a 100% interest in the Wilan Project located in South Australia, with two other Australian exploration companies with 100% owned interests in the Mount Isa copper belt region of Queensland, Australia.

The intention is to secure a planned new listing on a recognised stock exchange of the new merger company NewCo, comprising the South Australia and Queensland interests, or to dispose of the new merger company into a currently listed or to be listed vehicle.

Work is underway now to consider all available options and updates will be provided to the market in due course.

Uranium Energy Exploration PLC (UEE)

Uranium exploration in the Athabasca region of Canada

www.uraniumenergyexploration.com

50-55%~

Power Metal has agreed the disposal of two uranium properties to UEE subject to completion of a planned listing of UEE.

Following discussions with UEE, Power Metal has agreed to extend the period for completion of the planned listing by 3 months to 31 March 2023. The intention is to list on a different exchange to that previously planned and to add further uranium projects to the UEE portfolio prior to the planned listing.

As a result, UEE is now actively reviewing additional opportunities within the uranium space to bolster their portfolio in advance of the planned listing.

The proposed business model (Uranium exploration focused on the Athabasca Basin area of Saskatchewan, Canada) has the support in principle of proposed investors in an IPO financing and would bring the first Athabasca focused investment proposition to the London capital markets.

Further updates to follow as plans continue to advance.

^ subject to completion of Merger announced 15.12.22.

~ subject to completion of disposal of Reitenbach and E-12 properties, announced on 8.8.22 and 4.11.22, respectively.

* reducing to 58.59% on issue of equity for NSR buyout announced 5.12.22

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

 

#POW Power Metal Resources PLC – Molopo Farms Complex, Botswana – Drilling Update

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

A short presentation capturing developments at Molopo Farms and Power Metal’s 100% owned Tati gold Project is available on the Company’s website which is available through the following link:

https://www.powermetalresources.com/investors/botswana-in-focus-december-22/

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

“There is a strong momentum with our operations at Molopo Farms in Botswana where we have now commenced drilling at target area T2-3, a 12-kilometre-long magnetic body which represents another stand-out target we are eager to test.

From 5 drillholes across 4 target areas we have completed over 2,000m of diamond drilling, the drill core from which, is now the focus of multiple ongoing technical work streams including detailed core logging, downhole geophysics analysis and assay testing.

I look forward to reporting back to the market on developments at Molopo Farms as soon as practicable.”

HIGHLIGHTS:

 

§ Diamond drillhole DDH1-3A has been completed at target area T1-3 to a depth of 450m.

 

§ The inaugural drillhole (DDH2-3A) into target area T2-3A has progressed well to the current downhole depth of 129.4m (see Fig. 3). Drilling operations have now paused for the holiday season.

 

§ The electromagnetic (“EM”) geophysics conductor at target area T2-3A is located at approximately 400m downhole depth, so will be drill tested following the resumption of drilling operations expected early to mid-January 2023.

 

BACKGROUND INFORMATION

The following three figures outlining the Molopo Farms Complex Project Area, EM geophysics conductor targets, and details of the priority target area T2-3, may also be viewed on the Company’s website through the following link:

https://www.powermetalresources.com/project/molopo-farms-complex/

Further photographs and videos from the drill programme are and will be available on the Company’s website gallery section, through the following link:

https://www.powermetalresources.com/investors/gallery/molopo-farms-complex-botswana/

 

Figure 1: Map showing Molopo Farms Complex Project, Named Electromagnetic Targets and Current Drill Programme Status

(Map Projection: UTM Zone 35S WGS84)

Figure 2: Map Showing Location of In-Progress Drillhole DDH2-3A at Target T2-3 with Moving Loop EM Geophysics Section Line (A-A’ Figure 3), over 1st Derivative Magnetic Geophysics Response

Map Description automatically generated

(Map Projection: UTM Zone 35S WGS84)

Figure 3: Moving Loop EM Conductivity Cross-Section over Target Area T2-3 with Downhole Trend of In-Progress Drillhole DDH2-3A (targeted conductor in blue)

(vertical scale interpreted metres)

 

QUALIFIED 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 Qualified 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

Power Metal Resources #POW – Tati Gold Project, Botswana – Exploration Plans

Company in Final Stages of Planning Next Exploration Steps which will Include Soil Sampling, Geophysics, Trenching and Reverse Circulation & Diamond Drilling

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 100% owned and operated Tati Gold Project (“Tati” or the “Project”) located within the Tati Greenstone Belt near Francistown, Botswana.

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

At the Tati Gold Project we are focused on discovering a large gold deposit. So far, in our view, the evidence gathered is increasingly compelling.

 We have therefore accelerated next stage Project exploration plans, through which we believe we can move the Project forward quite considerably.

Those plans are outlined in further detail below and will test a much larger portion of the 8km gold-in-soil anomaly.  The plans also include the first testing of gold at depth to add to the near surface mineralisation already identified.

Further announcements will follow in due course as we execute on the plans outlined below.”

KEY PROJECT FEATURES

Gold-in-soil anomaly identified (the “Anomaly”).

Anomaly coincident with a major regional shear structure extending over a strike distance of approximately 8 kilometresthrough the centre of Project (Figure 1 below).

Soil sampling and reverse circulation (“RC”) drilling undertaken within the Anomaly.

To date, shallow high-grade and bonanza grade gold (up to 47.1g/t Au) intersected within northwest and southeast segments of the Anomaly.

Extensive near-surface gold mineralisation.

Identified from the 175m strike length tested with the prospect of further mineralisation across the remainder of the 8km Anomaly.

Potential for further gold mineralisation at depth.

Maximum RC drillhole depth to date of 55m, additional drill testing expected to test for further gold mineralisation at depth.

Cherished Hope, a former working gold mine, situated within the Project footprint.

Extensive evidence of gold production from Cherished Hope, providing a focal point for initial and follow-on exploration.

Local processing plant.

Within 20km from the Project, capable of processing fines dumps and any other material mined from the Project (subject to relevant local approvals).

DRILL RESULTS TO DATE LEAD TO EXPEDITED NEXT STAGE EXPLORATION

Assays results from the August 2022 reverse circulation (“RC”) drilling programme returned multiple near-surface bonanza grade intercepts including 1m of 47.1g/t gold (“Au”) from 6m downhole in drillhole CHRC0003 as well as 1m of 40.6g/t Au (from 2m of 23.2g/t Au) from 26m downhole in drillhole CHRC0006.

Due to the high-grade nature of the results achieved, the Company has fast tracked planning for the next stage of exploration, the details of which are highlighted below.

Full drill programme assays were released on 3 & 7 November 2022 and can be found at the links below:

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-initial-drill-assay-results/15699862

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-final-drill-assay-results/15703794

NEXT STAGE EXPLORATION HIGHLIGHTS

The next stage planned exploration programme will include various elements which are highlighted below:

· High-resolution soil geochemistry programme focused on approximately 3km of strike-length extension from the Cherished Hope mine where a historical widely spaced soil sampling programme highlighted multiple gold-in-soil anomalies with individual results up to 2,150ppb (2.15g/t) Au-in-soil. Approximately 500-600 individual soil samples are planned with follow up assay testing of samples.

· A ground magnetometer geophysics survey focusing on the northwestern strike length extension of the Cherished Hope Mine. The goal of the magnetometer survey is to provide high-resolution imaging of any structures or geology which may have had an influence on the emplacement of mineralised quartz reef structures.

· A mechanised trenching programme focused on extending the known strike-length extension of the main quartz reef structure at Cherished Hope which has currently been intersected by drilling over a ~175m strike-length (see Figure 2 below). The quartz reef currently remains open towards the northwest and southeast as well as down dip.

Approximately 12-15 RC drillholes are planned which will be designed to test for the along strike, and down dip extension of the main mineralised quartz reef structure. Multiple holes from the 2022 programme intersected mined-out voids, including drillhole CHRC0002 which was designed to test one of the thicker portions of the quartz reef, but due to the shallow dip chosen, it intersected a mining void from 10-15m downhole. Interestingly, 1m of 5.6g/t Au was intersected from 15-16m representing the footwall of the main quartz reef structure. At least one planned hole will have a steepened dip here in order to drill test the entire section of this quartz reef.

· Following the completion of the RC drilling component, approximately 3-5 diamond drillholes are planned which will be designed to drill test select portions of the quartz reef structures which were successfully delineated by the RC drilling. Diamond drilling provides full core rock samples, and therefore valuable information about structure, geology, and the nature of gold mineralisation.

· Preparations for the above programme are currently underway and the Company will provide further information in due course as programme elements are launched, commencing in early 2023. Components of the planned exploration programme could be changed dependent on results from the various elements planned.

FURTHER INFORMATION

Figure 1 – Tati Project Overview Plan Map:

Figure 2 – Tati Project Q3 Drilling Area Zoomed Plan Map:

QUALIFIED 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 Qualified 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 holds a number of priority exploration projects with active exploration underway currently. The status of each project is outlined in the table below:

Project

Operations

POW %

Project Status

Athabasca

Uranium

12 properties covering an area of 842km2 in the Athabasca Basin region Canada.

100%

Exploration programmes undertaken across three properties during summer 2022 and preliminary planning for work in Spring/Summer 2023 is ongoing. 

Desktop review work ongoing across the existing portfolio and data rooms established for all the projects, to enable third party review of opportunities for potential acquisition, joint venture or earn-in.

Ongoing review of new opportunities to further expand the Company’s Athabasca uranium property exposure.

Molopo Farms

Nickel – PGMs

3 prospecting licences covering 1,723km2 in south-west Botswana

87.71%

Currently a 2,600m diamond drill programme is underway with a planned 5-6 holes targeting four previously identified magnetic conductors prospective for Nickel – Platinum Group Metals. 

2 drill holes at target conductor T1-6 and one at T1-14 have been completed and drilling at target T1-3 target is underway currently.

Downhole geophysics completed at DDH1-6A and underway at DDH1-14B.

Further Moving Loop Electro-Magnetic surveys are planned over additional Airborne Electro-Magnetic targets identified, to develop further drill targets.

Tati Project

Gold – Nickel

Botswana

100%

Reverse Circulation drilling and soil sampling confirmed high-grade and bonanza grade gold mineralisation within a gold-in-soil anomaly extending for 8km across the Company’s prospecting licences.

Next stage exploration plans announced 15.12.22.

Sampling of fines dumps, representing waste material from the Cherished Hope gold mine on the project has confirmed circa 1g/t gold and suitability of the fines dumps for processing to extract gold and generate income.  Preparations for the fines dumps processing are advancing.

 

Exploration work programmes may also be underway within Power Metal investee companies and 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.  These interests are summarised in the table below:

Company

Operations

Status

POW %

Further Information Link

First Class Metals PLC

Exploration in the Schreiber-Hemlo region of Ontario, Canada

Listed Investment

27.91%

www.firstclassmetalsplc.com

 

Kavango Resources PLC

Exploration in Botswana

Listed Investment

9.85%

www.kavangoresources.com

 

First Development Resources PLC

Exploration in Western Australia and the Northern Territory of Australia

Planned IPO

62.12%*

www.firstdevelopmentresources.com

 

Golden Metal Resources PLC

Exploration and development in Nevada, USA

Planned IPO

83.13%

www.goldenmetalresources.com

 

New Ballarat Gold PLC

Exploration in the Victoria Goldfields of Australia

Planned IPO

49.9%

New website under development which can be found atwww.newballaratgoldcorp.com .

In the interim further information in respect of NBGC can be found at:

https://www.powermetalresources.com/project/victoria-goldfields/ .

NewCo

Exploration in Queensland’s Mount Isa copper belt and in South Australia

Planned IPO/Disposal

20% ^

NewCo website under development.

Uranium Energy Exploration PLC

Uranium exploration in the Athabasca region of Canada

Planned IPO

50-55%~

www.uraniumenergyexploration.com

* reducing to 58.59% on issue of equity for NSR buyout announced 5.12.22.

^ subject to completion of Merger announced 15.12.22.

~ subject to completion of disposal of Reitenbach and E-12 properties, announced on 8.8.22 and 4.11.22, respectively.

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