Home » Power Metal Resources (POW) » Power Metal Resources #POW – Geochemical Sampling, Mapping and Prospecting Programme Continues at Pace; Option Exercised to Acquire a 100% Interest in Two Licences in the Tati Greenstone Belt, Botswana

Power Metal Resources #POW – Geochemical Sampling, Mapping and Prospecting Programme Continues at Pace; Option Exercised to Acquire a 100% Interest in Two Licences in the Tati Greenstone Belt, Botswana

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company announces today that it has exercised its option (the “Option”) to acquire a 100% interest in two gold-nickel exploration licences located within the Tati Greenstone Belt (the “Tati Project” or the “Project”) located near Francistown, Botswana, through its local wholly owned operating subsidiary Power Metal Resources Botswana Pty Limited (“Power Metal Botswana”).

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

“The Tati Greenstone Belt is an ancient Archaean greenstone belt in the east of Botswana towards the Zimbabwe border. Francistown and its surrounding area were the site of the first South African gold rush in the nineteenth century, and have not had extensive modern exploration. 

The Company’s due diligence review of historic data identified numerous multi kilometre-scale nickel, arsenic and gold anomalies, which are now the subject of an ongoing Phase I exploration programme which includes detailed geochemical sampling, mapping and prospecting.

We consider that the Tati Project is  highly prospective and has the potential to deliver major gold and nickel discoveries, and on that basis we have exercised our option to acquire a 100% interest in the Project.

This transaction brings Power Metal to four project interests in Botswana, demonstrating our commitment to this secure and supportive jurisdiction therefore exposing our shareholders to tremendous upside across a highly attractive portfolio which alongside the Tati Projects now includes:

–  50% interest in a strategic joint venture (“SJV”) with Kavango Resources plc (“Kavango”) at the South Ghanzi Kalahari Copper Belt project targeting copper-silver discoveries with multiple airborne electromagnetic (“AEM”) geophysics targets and geochemical copper-zinc anomalies including some geographically extensive targets including the Morula Target which extends for over 18km in length and remains open along strike.

–  50% interest, also in the SJV with Kavango, in the Ditau Camp project targeting rare earth discoveries within large scale potential carbonatite intrusive bodies where three key target areas have recently been prioritised for drilling.

–  An effective 50.8% economic interest in the Molopo Farms Complex project with JV partner Kalahari Key Mineral Exploration Pty Ltd  targeting magmatic intrusion-hosted massive and disseminated nickel-copper sulphide and platinum group element (“PGE”) discoveries.

The Tati Project will shortly be delivering exploration updates to the market as the samples collected are due to to be assayed utilising multi-element analysis.  In addition, the objective is to see drill programmes running across all four Botswana interests in 2021, seeking multiple metal discoveries across the portfolio.”



Readers wishing to review the background should refer to the Company’s announcement dated 6 May 2021 detailing the full terms of the Option and which may be viewed here:


A historical data compilation completed on the Project led to the identification of several kilometre-scale nickel, arsenic and gold in-soil anomalies on PL127/2019 and PL126/2019. The historic data collected and interpreted is of widely spaced soil sampling surveys which were collected and analysed by previous operators.

The results from the data compilation were announced in a due diligence update by the Company on 23 June 2021 and which may be viewed here:


A Phase I work programme is underway on the Project which was announced by the Company on 28 June 2021 and may be viewed here:



Power Metal is currently undertaking a systematic, infill and extensional, soil sampling programme which will include over 1,000 invididual soil sampling points, together with outcrop rock sampling and prospecting following up on multiple orogenic gold and magmatic nickel targets identified during the historic data compilation. Further information on exploration plans and current status are provided below.


Two soil sampling grids have been completed. The first grid, located along the northwestern licence boundary, is targeting a northwest-southeast oriented historic Au-in-soil anomaly. A total of 380 samples have been collected along northeast-southwest oriented sample lines.  

These samples are currently en route to South Africa where they will be prepped to be sent on for final geochemical analysis in Australia.  

The second grid completed over this licence covers a historic nickel-in-soil anomaly which is coincident with a government mapped mafic/ultramafic intrusive unit. A total of 84 samples were collected which will be assayed by x-ray fluorescence (“XRF”) analysis in the coming days. 


A total of three soil sampling grids will be completed.

The first grid covering Target Area A has been completed which included 350 soil samples. This grid was designed to provide coverage over a northwest-southeast oriented historic arsenic-in-soil anomaly.  

Two additional grids covering: 1) Target Area B – over a historic arsenic-in-soil anomaly which is spatially coincident with arsenic anomalies extending from the nearby Signal Hill Gold mine; and 2) Target Area C – covering a historic southeast-northwest trending Nickel-in-soil anomaly which extends on to the nearby Tekwane Nickel mines. These surveys are in progress and the samples will be analysed with a portable XRF spectrometer within the coming days, following completion of the programme.

Maps showing the location of the Project licences , target areas and the sampling undertaken to date may be viewed on the Company’s website through the following link: 



The goal of the Phase I work programme is to further develop some of the high-priority exploration targets on the Tati Project which the Company plans to drill test later in the year.

Results from this programme will be released to the market following receipt, compilation and interpretation by Power Metal.  



Vital Commodities Pty Ltd, a company registered and Incorporated in Botswana (“VC”) VC is a private Botswana company that owns two prospecting licences in Botswana, (the “Vendors”). VC is 100% owned by Equity Drilling Limited, a company registered and incorporated in Guernsey.

Option Exercise:

Note the Option fee in respect of this transaction was a cash payment of £50,000 to the Vendors as originally announced on 6 May 2021 and now paid.  The full amount of £50,000 paid (the “Offset Payment”) may be credited and offset from the cost of the drilling undertaken by Equity Drilling Limited (100% owner of VC and who have a right to quote for drilling work at the licences until 30 September 2022) at the two PLs which are the subject of this Option or at other Power Metal interests in Botswana. 

VC will subject, to local authority approvals, arrange immediate transfer of PL 126/2019 and PL 127/2019 into Power Metal Botswana.

The consideration items outlined below, following Option exercise, will not become due and payable until the necessary local authority approvals for the transfer of PL 126/2019 and PL 127/2019 to Power Metal Botswana have been received and the transfer completed. 

–  Power Metal will pay an initial consideration of £25,000, payable through the issue to the Vendors of 833,333 new ordinary Shares of 0.1p each in the Company (“New Ordinary Shares”) at an issue price of 3.0 pence per New Ordinary Share (“Initial Exercise Shares”).

–  Thereafter should Power Metal elect to proceed with the year 3 exploration spend programme (for the year ending 30 September 2022) it will pay a further consideration of £50,000, payable to the Vendors through the issue of 833,333 New Ordinary Shares at an issue price of 3.0p each for each licence where such spending is confirmed, thereby if both

–  confirmed then 1,666,666 New Ordinary Shares would be issued (the “Further Exercise Shares”).

–  In addition, Power Metal will pay a single further consideration payment of £100,000 through the issue the Vendors of 3,333,333 New Ordinary Shares at an issue price of 3.0p (“Final Exercise Shares”) if either of the two following conditions are met:

–  (1) Confirmation of a 250,000 oz JORC (2012) compliant gold Mineral Resource across the two prospecting licences

–  (2) Confirmation of a 5,000,000 tonne economic nickel deposit at a grade of >1.5% nickel. 

–  Additionally, the Company shall issue to VC 5,833,332 warrants over New Ordinary Shares (the “Vendor Warrants”) in two separate tranches of 2,916,666 warrants each as follows:

2,916,666 Vendor Warrants shall be issued to acquire 2,916,666 New Ordinary Shares at an exercise price of 5p per share, exercisable over a 2-year period from 6 May 2021 and which are only exercisable on completion of exploration drilling against which the £50,000 Offset Payment has been credited (the “5p Vendor Warrants”).

The 5p Vendor Warrants shall be subject to a 5-day VWAP accelerator, by which should Power Metal shares trade above 10p for 5 trading days then the Company shall have the right to serve notice on VC that it must exercise and pay for the exercised 5p Vendor Warrants within 14 calendar days or the 5p Vendor Warrants shall be cancelled.

2,916,666 Vendor Warrants shall be issued to acquire 2,916,666 New Ordinary Shares at an exercise price of 7.5p per share, exercisable over a 2-year period from 6 May 2021 and which are only exercisable on completion of exploration drilling against which the £50,000 Offset Payment has been credited (the “7.5p Vendor Warrants”).

The 7.5p Vendor Warrants shall be subject to a 5-day VWAP accelerator, by which should Power Metal shares trade above 15p for 5 trading days then the Company shall have the right to serve notice on VC that it must exercise and pay for the exercised 7.5p Vendor Warrants within 14 calendar days or the 7.5p Vendor Warrants shall be cancelled.

Up to 30 September 2022 Power Metal will engage VC to quote for all drilling activities undertaken on PL 126/2019 and PL 127/2019.

The Vendors and their professional licensing and geological teams will continue to work with Power Metal following Option exercise to manage licences and third party relationships, undertake ground exploration and to help where appropriate to further build the licence footprint in Botswana. Reasonable commercial terms will be agreed for any additional work undertaken. 


The Tati Greenstone Belt (“TGB”) is located in the vicinity of Francistown, adjacent to the Zimbabwe border, in north-eastern Botswana. With a total strike length of 65km and up to 20km in width the TGB hosts a large number of orogenic style gold deposits and several economically significant intrusive magmatic nickel-copper-platinum group elements (“Ni-Cu-PGE”) rich sulphide deposits.

A gold rush started at Tati in 1867 leading to the establishment of Francistown and over 70 reported small scale gold mining operations. 

The TGB is Botswana’s only gold producing region with the Mupane gold mine (held by Galane Gold Ltd) being the country’s only major gold producer. Mupane was formerly an open-pit operation and is now an underground mine. It is located in the southern part of the TGB.

The known nickel deposits on the greenstone belt consist almost entirely of disseminated to semi massive sulphide bodies hosted by a series of late stage gabbroic-troctolitic intrusive bodies. Significant nickel operations operated until 2016, including the former Tati Nickel Mining’s Selkirk underground mine which commenced production in 1989 and the Phoenix open pit which started in 1995. Both deposits are located in the south-central portion of the TGB.

Geologically the TGB is part of the Francistown Arc Complex within the southern margin of the Archean age Zimbabwe Craton in the northern contact zone of the Limpopo Belt. The principal lithologies of the TGB are lower greenschist to lower amphibolite facies volcanic and sedimentary rocks, constrained by three fault-bounded volcano-plutonic sequences which are intruded by granitoids.  

Whilst there is a long history of small scale gold mining on the TGB, the Company believes it to be  under explored by modern standards and systematic exploration focussing on areas with sand cover and geophysics targeting greater depths are likely to yield further gold and nickel discoveries. 


Orogenic Gold (Deposits) – Gold deposits found within metamorphic belts which form as a result of major crustal deformation events.

Intrusive Magmatic Nickel (Deposits) – Nickel deposits found at the base of large mafic and ultramafic intrusive bodies. 

Arsenic/Gold/Nickel-in-soil anomaly – Geochemical anomaly defined by increased arsenic/gold/nickel levels over background. 

PGE – Platinum group elements (ruthenium, rhodium, palladium, osmium, iridium, and platinum

Mafic Intrusive Unit – Igneous rock that is dominated by magnesium and iron rich silicate minerals including pyroxene, amphibole, olivine, and mica.


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


Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking large scale metal discoveries. 

The Company has a global portfolio of project interests including precious and base metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

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