Power Metal Resources plc, the AIM listed metals exploration and development company, announces its unaudited interim results for the six month period ended 31 March 2023 (the “period”).
Sean Wade, Chief Executive Officer of Power Metal commented: “The key to unlocking value is to complete planned portfolio disposals, secure operational partnerships over certain exploration interests, drive our uranium interests forward, and ensure the Company has access to quality sources of finance in sufficient quantity to enable it to boldly pursue its ambitions.
“We are making progress across all these areas and whilst the completion of the Golden Metal Resources IPO and £2.7m financing, both in May 2023, are perhaps the notable events for investors recently, we hope to announce many more corporate and exploration events in the coming weeks and months.
“I would like to thank shareholders for their continued support as we progress through what we believe will be a vibrant and exciting period in the Company’s history.”
KEY DEVELOPMENTS IN THE HALF YEAR TO 31 MARCH 2023
– Completion of exploration programmes across three projects, including drilling at Molopo Farms in Botswana and the Victoria Goldfields in Australia, as well as geophysics and trenching at the Tati project in Botswana. All three have delivered positive exploration results, justifying a decision to proceed to next stage exploration with potential partners showing interest in all three projects.
– Material progress achieved in corporate activities, including pre-IPO preparations for Golden Metal Resources PLC, First Development Resources PLC and Uranium Energy Exploration Ltd.
– Broad spectrum advancement of the Company’s Athabasca Basin uranium portfolio, including additional ground acquisitions through staking, and the management of third-party interest in the uranium portfolio.
– Completion of the conditional acquisition of a larger stake in the Molopo Farms Complex project; the conditional disposal of the Company’s interests in the E-12 property in the Athabasca Basin to Uranium Energy Exploration, and the completion of the disposal of the Company’s interest in the Kanye Resources joint venture (“JV”), to partner Kavango Resources PLC (LON:KAV) for shares, warrants, royalty and long term compensation potential.
– Management changes including the appointment of Owain Morton as Non-Executive Director and Sean Wade as Chief Executive Officer. Together the appointments bring detailed geological, mine engineering and corporate finance skills to the Board and provide Power Metal with an extensive financing network for the Company and its planned spin-out IPO activity.
KEY DEVELOPMENTS SINCE 31 MARCH 2023
– Listing of Golden Metal Resources PLC on the London Stock Exchange in May 2023, with a value of Power Metal’s holding on listing of c £4.4m;
– Appointment of Bill Brodie Good as a Non-Executive Director in May 2023; and
– Financing which has raised £2.7m for the Company to support an acceleration of value generative exploration and corporate activity.
POWER METAL INTERESTS AT TODAY’S DATE
The latest updated review of Power Metal’s business interests is provided in the Company’s investor presentation which may be accessed here:
https://www.powermetalresources.com/investors/presentation/
In addition, a single page Business Overview is provided for investors through the following link:
https://www.powermetalresources.com/company/
LATEST POSITION OF POWER METAL INTERESTS AND TARGETED OBJECTIVES FOR 2023
Priority Exploration and Potential Exploration Project Joint Ventures
|
Exploration Interest |
Latest Position & Forward Plans |
|
Athabasca Uranium Saskatchewan, Canada (Uranium) POW 100% |
Power Metal currently holds 17 properties covering 1005.14km2 within and surrounding the prolific Athabasca Basin.
The conditional disposal of two of the properties, Reitenbach and E-12, has been announced and work is underway to complete that transaction through a listing in the London capital markets for the proposed holding vehicle, Teathers Financial PLC, to be renamed Uranium Energy Exploration PLC. Preparation of listing documentation is complete and the IPO financing is expected to commence shortly with completion of the transaction in 2023.
Across the Company’s wider Athabasca exploration interests there has been considerable third-party interest in working with Power Metal to finance uranium specific operations. The Company continues to engage with parties and anticipates significant progress to occur in 2023.
In addition, the Company’s recent £2.7m financing has provided the funds for a considerable uranium exploration programme in the Athabasca during the 2023 season, details of which can be found in the Company’s announcement dated 21 June 2023.
|
|
Molopo Farms Complex Project Botswana (Nickel – Copper – Platinum Group Element) POW: 87.71% |
The cumulative exploration programmes undertaken at Molopo Farms have demonstrated significant potential for a major nickel – platinum group element discovery or discoveries. There has been considerable interest from third parties to work with and potentially finance Molopo Farms at project level and Power Metal is working with interested parties at present. The Company is looking to move Molopo Farms forward considerably, targeting a working partnership in place and operational in 2023. |
|
Tati Project Botswana (Gold – Nickel) POW: 100% |
Recently completed geophysics and trenching have provided valuable data, adding to that previously collected. This enables the Company to move forward with next stage soil sampling prior to final planning and implementation of planned next stage reverse circulation and diamond drilling targeting a significant gold discovery.
Soil sampling is underway currently alongside continuing work to process fines dumps of previously processed ore from the Cherished Hope gold mine location within the Tati licence footprint with local processing partners.
|
Investment Holdings and Disposals Planned/Underway
Note: other project packages within the Power Metal portfolio are also in earlier stages of disposal and/or spin-out preparations in addition to those listed below.
|
Business Interest |
Latest Position |
|
Kavango Resources PLC (LON:KAV) Botswana & Zimbabwe Exploration (Gold – Base Metals) POW c.10% |
In Q4 2022 Power Metal announced the conditional disposal of its Kanye Resources interest to its joint-venture partner KAV. Following this disposal, Power Metal holds c.10% of KAV worth c.£0.8m as at 31 March 2023. Power Metal also holds 30m warrants to acquire new KAV shares at 4.25p and 30m warrants to acquire new KAV ordinary shares at 5.5p per share, both with a life to expiry ending 8 January 2025. In addition, Power Metal holds a 1% net smelter return royalty over the former JV land footprint. |
|
First Class Metals PLC (LON:FCM) Schreiber-Hemlo, Ontario, Canada (Gold – Base Metals) POW c.26% |
FCM secured a listing on the London Stock Exchange in late July 2022 with Power Metal holding an interest following its IPO financing of 28.19% on listing (now c.26% after dilution since listing), worth c.£2.05m as of 31 March 2023. Power Metal also holds 517,705 warrants to acquire new FCM ordinary shares at 10p per share with an expiry date of 29 July 2023. |
|
Golden Metal Resources PLC (LON:GMET) Nevada, USA Gold – Base Metals POW c.62% |
GMET secured a listing on the London Stock Exchange in late May 2023 with Power Metal holding an interest following their IPO financing of 62.06%, worth c.£2.05m as at the date of this report. Power Metal also holds 1,749,378 warrants to acquire new GMET ordinary shares at 10.75p with an expiry date of 10 May 2024 and 1,749,378 warrants at 17.5p with an expiry date of 10 May 2025. |
|
First Development Resources PLC (FDR) Western Australia /Northern Territory (Gold – Copper – Rare Earth Elements – Uranium – Lithium) POW: c.59% |
FDR is currently in the IPO Financing stage of it listing plans with IPO documentation prepared and ready for listing. The listing of FDR is expected to occur in the near term.
|
|
New Ballarat Gold Corporation PLC (NBGC) Victoria, Australia (Gold) POW: 49.9% JV Partner Red Rock Resources PLC (LON:RRR): 50.1%
|
Through its Australian operating subsidiary, Red Rock Australasia Pty Ltd, NBGC has a substantial licence footprint within the Victoria Goldfields, Australia, which is comprised of 17 granted exploration licences covering 1,867km2 and 5 licence applications covering 493km2. The intention of the JV parties is to undertake a listing of NBGC on the UK capital markets. Power Metal is targeting a listing during 2023. |
|
ION Battery Resources Ltd (ION) Canada (Lithium & Graphite) POW 100% |
ION comprises two lithium focused projects in Ontario and Quebec and a graphite project in Saskatchewan. Next exploration and corporate steps are under consideration for ION and a further announcement will come in due course. The commercial pathway for ION is expected to be announced, with material progress in the business expected during 2023. |
|
New Horizon Metals Pty Ltd (NHM) Queensland and South Australia (Copper – Uranium – Gold) POW 20% |
The JV partners behind NHM are currently considering a number of proposals to secure a listing of NHM on the London or Australian capital markets. Completion of a listing is targeted in 2023. |
PROJECTS WITH NEXT STEPS UNDER CONSIDERATION
|
Project |
Latest Position & Key Forward Events |
|
Haneti Project Tanzania (Polymetallic) POW: 35% (65% JV Partner Katoro Gold plc (LON:KAT)) |
Power Metal is currently in discussions with a JV partner Katoro Gold (LON:KAT), to determine the future of the Haneti Project.
Further information will be provided when material developments occur.
|
|
Silver Peak Project British Columbia, Canada (Silver) POW: 30% |
Power Metal is currently in discussions with its JV partner to determine next corporate and exploration steps for Silver Peak.
An outcome to these discussions is expected in the near term with advancement of the project from an exploration and/or commercial perspective anticipated during the remainder of 2023.
|
FINANCIAL HIGHLIGHTS FOR THE HALF YEAR ENDED 31 MARCH 2023
· Loss for the period, attributable to owners of the parent of £1.50 million (2022: £1.69 million), resulting in loss per share of 0.09 pence (2022: 0.12 pence);
· Financing undertaken in January 2023 raising £0.9 million and acquisitions during the period raised £1.1 million for the Company;
· Total assets of £14.62 million at the period end (30 September 2022: £14.61 million); and
· Net assets of £13.99 million at the period end (30 September 2022: £13.76 million).
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 POW https://www.powermetalresources.com/ or contact:
|
Power Metal Resources plc |
||
|
Sean Wade (Chief Executive Officer) |
+ 44 (0) 20 3778 1396 |
|
|
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 |
|
Blythe Ray (Financial PR)
Tim Blythe/Megan Ray +44 (0) 20 7138 3204