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Power Metal Resources #POW Company Option Pool and Proposed Award of Non-executive Director Options

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce the creation of a Company Option Pool for key team members and, subject to shareholder approval, the proposed award of Non-executive Director Options. 

Company Option Pool 

Power Metal has created a pool of 25 million new options (the “Pool Options”) to acquire new ordinary shares of 0.1p each in the Company (“Ordinary Shares”) at an exercise price of 3.25p per share.  The Pool Options have a 3-year life to expiry from today’s date.

The Pool Options are to be awarded to key members of the Company’s operational teams, who are essential to the forward development and growth of the Company in the months and years ahead.  To be clear, Power Metal directors will not receive options from this Company Option Pool, which is designed to incentivise other non-board team members.

The Pool Options are subject to a share price performance condition and cannot be exercised until the volume weighted average share price (“VWAP”) of the Company has exceeded 5.0p per Ordinary Share for ten consecutive trading days.  All recipients will be subject to performance criteria with regard to the Pool Options including a minimum 6 months’ service from today’s date.

Where possible the Pool Options will be awarded under the Enterprise Management Incentive scheme.

Proposed Award of Non-executive Director Options

In addition to, and separate from the above Company Option Pool, the Company proposes to award options (the “Director Options”) to Non-executive Directors Scott Richardson Brown and Edmund Shaw.  The Director Options will be issued immediately following, and subject to, shareholder approval at the next available General Meeting (“GM”) of the Company. 

The proposal is for both directors to receive 5 million options each to acquire new Ordinary Shares at an exercise price of 3.25p per share.  The Options will vest immediately on conclusion of the above GM subject to shareholder approval and have a 3 year life to expiry from today’s date. 

The Director Options are subject to a share price performance condition and cannot be exercised until the volume weighted average share price (“VWAP”) of the Company has exceeded 5.0p per Ordinary Share for ten consecutive trading days.  Both directors must also serve for a further 6 months from today’s date in their roles as Non-executive Directors.

Related Party Transaction

The proposed grant of the Director Options to Scott Richardson-Brown and Edmund Shaw is deemed to constitute a related party transaction pursuant to AIM Rule 13 of the AIM Rules for Companies. The Directors independent of the proposed grant of the Director Options, being Paul Johnson and Andrew Bell consider, having consulted with the Company’s nominated adviser, that the terms of the Director Options are fair and reasonable insofar as the shareholders of the Company are concerned.

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

“I am pleased to announce this proposed award of options to the Company’s Non-executive Directors, as recognition of their ongoing role in the Company and the creation of a Company Option Pool to award key members of the team for their ongoing service.

The demands placed on all the Company’s team members are immense, given the intensity of Company activities, and that situation is likely to persist going forward.

Once again, we have ensured that options awarded include performance conditions aligning option recipients interests with shareholders.  Aside from the premium of the exercise price above the market price (c. 35%) the VWAP performance condition means the share price must increase by at least 108% to 5.0p before the options can be exercised.”

Overall Summary of Director Options

Following the above Director Option issues the overall options held by the board are:

Director

Number of Ordinary Shares under option

Terms

Andrew Bell (Chairman)

13,613,929*

7,500,000*

1.0p exercise price, expiry 15/02/2022

2.0p exercise price, expiry 29/07/2023, 2.0p six month VWAP hurdle before exercise

Paul Johnson (CEO)

13,613,929*

12,500,000*

1.0p exercise price, expiry 15/02/2022

2.0p exercise price, expiry 29/07/2023, 2.0p six month VWAP hurdle before exercise

Scott Richardson Brown

(Non-executive director)

500,000*

500,000*

5,000,000*

5,000,000^

5.0p exercise price, expiry 28/08/2023

5.0p exercise price, expiry 28/08/2023

1.0p exercise price, expiry 19/02/2023

3.25p exercise price, expiry 4/06/2024, 5.0p ten day VWAP hurdle before exercise

Edmund Shaw

(Non-executive director)

5,000,000*

5,000,000^

1.0p exercise price, expiry 19/02/2023.

3.25p exercise price, expiry 4/06/2024, 5.0p ten day VWAP hurdle before exercise

*Existing options

^New proposed Director Options announced today (and subject to shareholder approval at GM)

Total

68,227,858

 

Certain information contained in this announcement would have been deemed 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 (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

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

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

Power Metal Resources #POW – Release of Interim Results and Extension of Insider Warrants

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update for shareholders covering the Company’s Interim Results and the extension of Insider Warrants.

 

Interim Results

The Company is finalising its Interim Results for the six months ended 31 March 2021 which it expects to announce by the end of May 2021.

Extension of Insider Warrants

On 19 February 2021 the company announced a 3 month extension to 40 million Financing Warrants (issued in February 2019 to participants of the Company refinancing) held by insiders and connected parties (the “Insider Warrants”) and a new expiry date of 18 May 2021.  

The extension was granted due to the impending release of audited financial statements for the year ended 30 September 2020 and given the level of ongoing operational activity that may frequently restrict the exercise of Insider Warrants due to the holders being in possession of price sensitive information.

The Insider Warrants remaining outstanding as at 17 May 2021 are as follows:

Warrant Holder

N umber of Warrants

Exercise Price

Paul Johnson

10,000,000

1.0p

Andrew Bell

10,000,000

1.0p

Red Rock Resources plc

20,000,000

1.0p

As noted above the Company is currently finalising its interim financial statements for the half year ended 31 March 2021, which Power Metal expects will be announced to the market by the end of May 2021, consequently the Company is in a close period.

In addition, the Company continues to experience a heightened level of operational activity, notably with the regular inflow of price sensitive information in relation to material exploration findings and corporate development activities.  The Company expects this level of operational activity may continue for some time.

As a result of the above, the Insider Warrants held by Paul Johnson (Chief Executive Officer of Power Metal), Andrew Bell (Chairman of Power Metal and Red Rock Resources plc) and those held by Red Rock Resources plc, cannot be exercised by the expiry date of 18 May 2021.

Reflecting the above the Company has extended the Insider Warrants expiry date by a further three months to a new expiry date of 18 August 2021. 

RELATED PARTY NOTE

The extension of the Insider Warrants held by Paul Johnson, Andrew Bell and Red Rock Resources Plc as outlined above, have been treated as a related party transaction for the purposes of AIM Rule 13.

Scott Richardson Brown and Edmund Shaw, being the independent Directors for the purposes of the extension of the expiry date of the Insider Warrants held by Paul Johnson and Andrew Bell and Red Rock Resources Plc consider, having consulted with the Company’s nominated adviser, SP Angel, that the extension of the Insider Warrants expiry date to 18 August 2021 to such related parties is 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 (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery. 

The Company has a global portfolio of project interests including precious 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.

Power Metal Resources #POW – Conditional Australia Copper-Gold Acquisition

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce an agreement has been reached for the acquisition of a 75% strategic interest in a UK special acquisition vehicle which is to acquire outright First Development Resources (Pty) Limited (“FDR Australia”), an Australian private company.

FDR Australia holds a portfolio of copper-gold focused exploration interests in the Paterson Province in the eastern Pilbara Region of Western Australia. The acquisition of FDR Australia will not be undertaken until the Ripon Hills Project has been successfully transferred into FDR Australia and a granted exploration licence has been received by FDR Australia in respect of the Wallal Project. Further announcements will be made by the Company as appropriate.

CHIEF EXECUTIVE OFFICER STATEMENT

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

“The acquisition announced today provides Power Metal with a strategic interest in exploration properties in the Paterson Province, Western Australia.  This region has seen considerable interest in recent years following the Havieron discovery by Greatland Gold plc and Winu discovery by Rio Tinto.

The level of interest in the region has intensified of late and the opportunity to secure a high-quality strategic licence footprint is diminishing. We needed to act to secure Power Metal’s seat at the “Paterson” table.

We now have a seat at that table, but this is Power Metal and our policy is to carve out innovative pathways for value generation with each new transaction.

Through this acquisition we are creating a new strategic Australian copper-gold exploration vehicle with a view to listing this special acquisition vehicle on the London capital markets at the earliest opportunity.

There is a clear opportunity in the Paterson Province, something we intend to pursue with considerable vigour and as you will see below, we are aligning Power Metal with an experienced Australian team to support the business in the run up to the listing of the special acquisition vehicle.

For myself, and Andrew Bell Chairman of Power Metal, this transaction is reminiscent of the financing and restructuring of Greatland Gold we coordinated in April 2016, which rejuvenated that vehicle and provided the backdrop to the dramatic delivery for shareholders we saw there.  It does Power Metal no harm if we aspire to achieve another positive outcome with this new opportunity.” 

BACKGROUND

This acquisition agreement (the “Agreement”) underlying this transaction was finalised on 27 April 2021 and was based in part on an option agreement (the “Option”) announced by the Company on 19 January 2021 and which may be viewed through the following link:

https://www.powermetalresources.com/n/n340/option-signed-australia-copper-gold-acquisition

After signing of the original option agreement which focused on two exploration projects being the Wallal Project and the Ripon Hills Project, three additional exploration properties became available for acquisition which would significantly enhance the overall exploration licence footprint.

Discussions with FDR Australia and associated project vendors ensued and due diligence work was undertaken on the wider exploration package.  The discussions were extended to the consider the strategic opportunity to work together and potentially create a new London listed Australian exploration vehicle, focused on the Paterson Province, in Western Australia.

To secure the strategic footprint in one move it was necessary to pick apart the original option agreement and reconstruct the transaction.

The outcome of this is that Power Metal Resources will acquire an effective 75% interest in FDR Australia.  This interest will be held through a 75% interest in a newly created UK private company, (“FDR UK”), which will ultimately hold 100% of the issued share capital of FDR Australia. The remainder 25% of FDR UK will be held by the vendors and associated parties, as outlined below.

FDR Australia’s business interests are outlined below and include five exploration projects including one granted exploration licence (the Ripon Hills Project) and four licence applications (the Wallal, Wallal West 1, Wallal West 2 and Braeside West Projects).

The intention is to list FDR UK on the UK capital markets, on the most expedited pathway possible.

THE PATERSON PROVINCE

The Paterson Province is considered highly prospective for gold-copper and base metal mineral systems and is currently of particular focus for resource companies with a significant level of exploration activity underway across the region. 

This level of interest follows recent high-profile copper and gold discoveries by Rio Tinto at their Winu property1 and by Greatland Gold plc (LON:GGP) with the Havieron discovery2. Notably, several major groups in search of Tier 1 deposits have entered into joint-venture / farm-in agreements with junior explorers to expedite exploratory work. 

The area also has developed mine and processing infrastructure due to the presence of established mining operations, including Newcrest Mining’s Telfer Mine3 and the X-Metals Nifty Copper Operation4 (planned as a mine restart). 

FDR AUSTRALIA AND ITS BUSINESS INTERESTS

FDR Australia currently holds five project interests (the “FDR Australia Interests”) as follows: 

The Wallal Project – E45/5816 – Licence Application

E45/5816, the Wallal Project is an exploration licence application held outright by FDR Australia and covering 390km2 in the western quadrant of the Paterson Province   with a favourable lithospheric setting for substantial base metal deposits consistent with Rio Tinto’s (ASX: RIO) Winu discovery – predominantly copper-gold-silver with a JORC compliant Inferred Resource of 503Mt @ 0.45% Cu equivalent.  

Ripon Hills Project – E45/5088 – Granted Exploration Licence

E45/5088, the Ripon Hills Project is a granted exploration licence covering 4 2km2 prospective for base metal-gold mineralisation and is proximal to Rumble Resources’ (ASX: RTR) Braeside Project where significant new base metal discoveries have been made 5 .

The Ripon Hills Project will be transferred at nil cost to FDR from current owner Great Sandy Pty Ltd (“Great Sandy”) a private Australian Company (the consideration for the transfer will be satisfied by Great Sandy nominees receiving a proportion of consideration outlined below.) (Note: The mineral rights for manganese and iron are excluded for the Ripon Hills Project.) 

Wallal West 1 Project – E45/5853 – Licence Application 

E45/5853, the Wallal West 1 Project, is an exploration licence application covering 96km2prospective for base metals and gold.

The ownership rights to the Wallal West 1 Project will be transferred at nil cost to FDR Australia from current owner Pardoo Resources Pty Ltd (“Pardoo”) a private Australian Company (the consideration for the transfer will be satisfied by Pardoo nominees receiving a proportion of consideration outlined below”.) 

Wallal West 2 Project – E45/5880 – Licence Application

E45/5880 the Wallal West 2 Project, is an exploration licence application covering 86km2prospective for base metals and gold.

The ownership rights to the Wallal West 2 Project will be transferred at nil cost to FDR Australia from current owner Pardoo (the consideration for the transfer will be satisfied by Pardoo nominees receiving a proportion of consideration outlined below”.) 

Braeside West Project – E45/5854 – Licence Application

E45/5854 the Braeside West Project, is an exploration licence application covering 137km2prospective for copper-lead-zinc and manganese mineralisation.

The ownership rights to the Braemore West Project will be transferred at nil cost to FDR Australia from current owner Pardoo (the consideration for the transfer will be satisfied  by Pardoo nominees receiving a proportion of consideration outlined below”.) (Note: The mineral rights for manganese and iron are excluded for the Braeside West Project.)

FDR Australia Additional Disclosure

In the 6 months ended 31 December 2020 FDR Australia made an operating loss of A$18,914 (circa £10,707) and as at 31 December 2020 FDR had net liabilities of A$19,939 (circa £11,287).  

EXPLORATION RATIONALE

The Company believe that  securing a footprint in the prospective Paterson Province in Western Australia has the potential to deliver significant value for shareholders.

While the area has excellent mining infrastructure, there are many parts of the region – highly prospective for copper-gold mineralisation – which are under-explored. In turn, this significantly enhances the upside potential as much of the area is masked by surficial cover. 

Using an array of modern exploration techniques, comprising reconciling geophysics and geochemical surveys, the exploration would seek to efficiently and cost effectively identify priority test-drill targets.

TRANSACTION TERMS – ACQUISITION OF FDR AUSTRALIA

Power Metal will, subject to local regulatory approvals and through a new special acquisition vehicle acquire an effective 75% interest in FDR Australia, an Australian private company holding five exploration projects.

The 75% interest will be held through a special acquisition vehicle, namely a new UK private company  (FDR UK) which will acquire a 100% interest in FDR Australia and in which Power Metal will hold a 75% interest.

The intention is to list FDR UK on a recognised stock exchange in the London capital markets at the earliest opportunity. 

The vendors of the FDR Australia interests include the shareholders of FDR Australia and various third parties with interests in the exploration properties included in this announcement (the “Vendors”).  The Vendors will hold the remaining 25% interest in FDR UK.

In addition to the 25% holding in FDR UK the consideration payable to the Vendors and related transaction terms are as follows:

–  Power Metal will pay initial consideration of A$50,000 in cash (circa £27,798) and £275,000 payable through issue to the Vendors of 10 million new Power Metal Ordinary Shares of 0.1p (“Ordinary Shares) at an issue price of 2.75 pence per share (“Initial Consideration Shares”) (note: A$20,000 (circa £11,322) will be used to eliminate shareholder loans in the accounts of FDR Australia and therefore on its acquisition by FDR UK, FDR Australia will carry no liabilities).  The cash component of the consideration above will be funded from Power Metal existing cash resources. 

–  In addition, Power Metal will issue the Vendors 10 million warrants with an exercise price of 4.5p per new Ordinary Share and life to expiry of 3 years from the date of issue (“Initial Consideration Warrants”).  Should the volume weighted average price (“VWAP”) of Power Metal shares meet or exceed 7.0 (seven) pence for a 5 consecutive trading days Power Metal may serve notice on the Vendors providing 10 trading days to exercise and pay for the Initial Consideration Warrants or the Initial Consideration Warrants will be cancelled.

–  The acquisition of FDR Australia by FDR UK will not be undertaken until the Ripon Hills Project has been successfully transferred into FDR Australia and a granted licence has been received by FDR Australia in respect of the Wallal Project.

–  The initial consideration items outlined above (cash, Initial Consideration Shares and Initial Consideration Warrants) will not be paid until FDR UK acquires 100% of FDR Australia and until the regulatory approvals have been received including any such approval required from the Foreign Investment Review Board (“FIRB”), Australia enabling that acquisition to proceed.

In addition, subject to the acquisition of FDR Australia by FDR UK: 

–  Excluding the Wallal Project, upon grant of each of the three additional exploration licence applications (Wallal West 1 & 2 and Braeside West) and ownership transfer to FDR Australia a further £80,000 consideration is payable through the issue of 2,500,000 new Ordinary Shares at an issue price of 3.2p each (“Grant Shares”).  Should all three licence applications be granted the total consideration payable is £240,000 (being £80,000 per granted exploration licence application) through the issue of 7,500,000 new Ordinary Shares at an issue price of 3.2p each. 

–    Excluding the Wallal Project, upon grant of the each of the three additional exploration licence applications (Wallal West 1 & 2 and Braeside West) and ownership transfer to FDR Australia Power Metal will issue the Vendors 2,500,000 warrants with an exercise price of 5p per new Ordinary Share and life to expiry of 3 years from the date of issue (“Grant Warrants”) for each exploration licence application granted.  Should the VWAP of Power Metal shares meet or exceed 10.0 (ten) pence for a 5 consecutive trading days Power Metal may serve notice on the Vendors providing 10 trading days to exercise and pay for the Grant Warrants or the Grant Warrants will be cancelled.  Should all three licence applications be granted a total of 7,500,000 Grant Warrants will be issued.

–  The Vendors will retain a 2% net smelter royalty (“NSR”) over all licences included in this transaction and FDR UK will have the right to purchase 1% of this NSR for A$1,000,000

–  The Vendors and their professional licensing and geological teams will continue to work with Power Metal to manage local corporate operations, undertake initial ground exploration and potentially to further build the licence footprint in the Paterson Province. 

–  A suitable advisory team will be promptly established to manage the corporate activities required to seek a potential listing of FDR UK on the UK capital markets. 

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

References:

Source 1: Rio Tinto PLC announcement https://www.riotinto.com/en/news/releases/2020/Rio-Tinto-reveals-maiden-Resource-at-Winu-and-new-discovery

Source 2: Greatland Gold PLC announcement https://polaris.brighterir.com/public/greatland_gold/news/rns/story/wkqm9ow  

Source 3: Newcrest Mining Ltd : https://www.newcrest.com/our-assets/telfer  

Source 4: Metals X Ltd:  https://www.metalsx.com.au/copper/  

Source 5 : Rumble Resources Ltd:  http://rumbleresources.com.au/braeside_project.php  

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 (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

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

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

Power Metal Resources #POW – RRAL Australia Gold Joint Venture – Exploration Update

 

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an exploration update in respect of Red Rock Australasia Pty Ltd (“RRAL”) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.

Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (“Red Rock”)(LON:RRR)  holding a 50.1% interest.

Highlights:

  • Further to the Company’s announcement of 3 February 2021 announcing the commencement of exploration on recently granted exploration licences a sampling and mapping programme has been undertaken.
  • The programme objectives were to identify potential southern extensions to the main lode systems of Ballarat East through looking for low level gold anomalism and pathfinder elements and to evaluate the relative effectiveness of X-ray Fluorescence (“XRF”)  and Mobile Metal Irons (“MMI”)  testing in the region, as part of a programme of work to constrain the areas to be drill tested later in the year.
  • A total of 1,024 soil and rock chip samples were collected in EL007271 and EL007281 in the old Monmouth/Enfield and O’Laughlin/Scotsburn mining areas for XRF and MMI testing as follows:
    • 142 soil samples have been collected to date in EL007281 with rock chip sampling, mapping and sampling of road cuttings continuing at present.
    • 882 soil samples have been collected in EL007271 of which 84 have been sent for MMI analysis.
  • Sample analysis results are expected to be received in the coming weeks.
  • Preparation of work plan and stakeholder engagement for trenching around Monmouth.

RRAL Director Dave Holden comments: “Increasing evidence from previously unknown workings of east-west lines of mineralization at Monmouth, in an area where the main geological trend runs north-south, has been an interesting outcome of our work to date, and is being actively followed up.

As early as 1903 it was recognised that this mineralisation may be different to the main Ballarat system, with reference to a pyrite lode and “gold shale”. The numerous reefs along both the Happy Thought line and at the Monmouth Mine were considered at the time to be strongly reminiscent of the Jubilee Mine project (mined 1887 – 1913). That mine produced approximately 130,000 ounces of gold at a recovered grade of around 12 g/t*, showing the potential importance of east-west structures in this environment.

The programme is going well and besides working on our technical presentations we continue to intensify our community engagement and to prepare our environmental programme including flora and fauna surveys. The pace of activity is intensifying as more of our licence applications start to be granted.”

*ref: Navarre Minerals Ltd website

Background Information on Current Programme

Prospects

The O’Laughlin prospect is coincident with a broad potassic anomaly and weakly anomalous geochemical signature.  It covers minor hard rock historical workings that remain largely undocumented whilst areas of alluvial workings exist in the valleys on the side of the main ridge confirm the likelihood of gold shedding from within the prospect area.**  Nearby, Scotsburn displays a similar geochemical and radiometric signature and sits north along strike from O’Laughlin. 

**   One map reference to the Glasgow and Enfield reefs 1859 and a single newspaper article refer to mining on the Glasgow reef in 1865. These reefs lie central to this project area.

The Scotsburn prospect comprises a more consolidated line of workings for over a kilometre to the well-known Locomotive Extended mine and shafts north of Buninyong (southeast of Ballarat).  The Devonshire reef system just east of Buninyong township and extending down through the Scotsburn target area was actively mined in numerous shafts during the late 1890s.

The Enfield prospect (or Monmouth prospect) covers the historical area of the Monmouth and Happy Thought mines which are also largely undocumented however the prospect area is considered potentially to cover the southern extension of the Ballarat West lode system.

Programme

RRAL has initiated a comprehensive soil sampling program over the areas in conjunction with detailed field mapping.

The sampling is using both traditional MMI low level analytical methods as well as evaluating the efficacy of portable XRF analyser as a cost-effective alternative allowing a significantly higher number of samples to be collected with a shorter turnaround for results.

In conjunction with the extensive soil sampling, field mapping and discrete sampling of quartz veins both within workings and newly identified at surface will be undertaken. It is anticipated that the outcomes of the first phase of exploration could lead to confirmation that significant mineralisation is present and will allow planning to start for a drill programme later in the year. 

FURTHER INFORMATION

Joint Venture Company – RRAL

RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc. Paul Johnson, CEO of Power Metal and Andrew Bell, Chairman of Power Metal and Red Rock, are directors of RRAL.

Granted Licences

RRAL has five granted licences over the three appplications nearest to the regional centre of Ballarat, namely EL007271 (“Blue Whale”), EL007281 (“Blue Chip”), and EL007285 (“Blue Ribbon”), a licence further south EL007327 (“Blue Stocking”), and one north of Daylesford EL007385 (“Sardinia”).

These licences cover 279 sq km and cover high priority areas where RRAL has early drill targets that it is developing.

License Application Number

Project Name

Area (km2)

EL007271

 

Blue Whale

133

EL007281

 

Blue Chip

74

EL007285

 

Blue Ribbon

8

EL007327

Blue Stocking

60

EL007385

Sardinia

  4

Total

279

Applications

RRAL has licence applications in process for eleven other new gold exploration licence areas covering approximately 2,057 km2 in the Victoria Goldfields of Australia as follows:

Licence Application Number

Project Name

Area (km2)

EL007282

 

Blue Sky

489

EL007294

Red Queen

130

EL007301

Mt Bute

85

EL007328

Blue Yonder

168

EL007329

Evergreen

486

EL007330

Blue Angel

202

EL007460

Kilmore West

349

State land within EL007271

 

[EL007505

EL007506

EL007507]

 

 

 

 

 

 

 

[9

9

8]

EL007540*

(3 competing applications)

 

Outer Ballarat

148

Total

c 2,057

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority. 

The technical information relating to exploration in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists. Mr Holden has experience in the style of mineralisation and type of deposit under consideration. Mr Holden is the Exploration Manager of RRAL. 

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

Power Metal Resources #POW – Director / PDMR Shareholding

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company was notified on 14th April 2021 that Mrs Stephanie Bell made on that day a sale and repurchase of ordinary shares of 0.1 pence each in the capital of the Company to migrate part of her current shareholding into her own ISA.  Mrs Bell sold 906,218 Ordinary Shares held through SI Capital Ltd and 906,218 were repurchased by her ISA on 14th April 2021.

Mrs Bell is a Person Closely Associated with Andrew Bell, Chairman of Power Metal and a Person Discharging Managerial Responsibilities for the purposes of the Market Abuse Regulation.

Following the dealing, the interests of Mr. Bell and his PCAs in the Ordinary Shares remains unchanged, at 22,282,403  Ordinary Shares, representing 1.95 per cent of the issued share capital of the Company. 

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 – Australia Gold Joint Venture – Further License Grants & Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of Red Rock Australasia Pty Ltd (“RRAL”) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.

Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (LON:RRR)  holding a 50.1% interest.

Highlights:

  • RRAL has received formal license grants for a further two of its license applications as follows:
    • The 60 sq km “Blue Stocking” license to the south west of Ballarat (EL007327)
    • The 4 sq km “Sardinia” license to the north of Daylesford (EL007385)
  • Both licenses are granted for a period of five years .
  • Further information in respect of RRAL’s exploration programme covering the new granted licenses will be announced shortly.
  • To date RRAL has now received five granted licenses covering 279 km2 with further license grants awaited.
  • Appointment of David Holden as a Director of RRAL and Jack McInerney as RRAL Exploration Geologist. 

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

“It is good to see the strategic license application footprint steadily converting into granted status and we look forward to the receipt of further grants.

As announced recently, RRAL exploration programmes are now underway targeting a large scale gold discovery or discoveries and we expect to be in a position to announce first exploration results in the near future.

RRAL’s exploration programmes will expand rapidly as more license grants are received and we are taking the steps now to scale up operational capability in Victoria in advance.  As part of this scale up we welcome David Holden, RRAL’s Exploration Manager, as a new Director on the board of RRAL. Dave’s work to date has been key to our rapid business development so far.  We also welcome Jack McInerney, with four years of regional experience at the Ballarat Gold Mine, who joins RRAL as an Exploration Geologist. 

As previously announced, we are also working in parallel on corporate work in respect of the proposed listing of certain core interests of RRAL on the Canadian Capital Markets.” 

FURTHER INFORMATION

Joint Venture Company – RRAL

RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc (“POW”). Paul Johnson, CEO of POW and Andrew Bell are directors of RRAL.

Granted Licenses

RRAL has been granted licenses over the three appplications nearest to the regional centre of Ballarat, namely EL007271 (“Blue Whale”), EL007281 (“Blue Chip”), and EL007285 (“Blue Ribbon”), a license further south EL007327 (“Blue Stocking”), and one north of Daylesford EL007385 (“Sardinia”).

These licenses cover 279 sq km and cover high priority areas where RRAL has early drill targets that it is developing.

License Application Number

Project Name

Area (km2)

EL007271

 

Blue Whale

133

EL007281

 

Blue Chip

74

EL007285

 

Blue Ribbon

8

EL007327

Blue Stocking

60

EL007385

Sardinia

                   4

Total

279

Applications

RRAL has license applications in process for eleven other new gold exploration license areas covering approximately 2,057 km2 in the Victoria Goldfields of Australia as follows:

License Application Number

Project Name

Area (km2)

EL007282

 

Blue Sky

489

EL007294

Red Queen

130

EL007301

Mt Bute

85

EL007328

Blue Yonder

168

EL007329

Evergreen

486

EL007330

Blue Angel

202

EL007460

Kilmore West

349

State land within EL007271

 

[EL007505
EL007506
EL007507]

 

 

 

 

 

 

[9
9
8]

EL007540*

(3 competing applications)

 

Outer Ballarat

148

Total

c 2,057

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

The following application has been made in Western Australia:

EL45/5859

(One competing application)

Pilbara

227 km2

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 (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

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

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

Power Metal Resources #POW – Warrant Update & Extension of Insider Warrants

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide a warrant update for shareholders.

Update Regarding Exercise of Warrants Expiring February 2021

On 18 February 2019 the Company issued warrants (the “February 2019 Warrants”) as part of the refinancing of the Company as outlined below:

Description

Number of Warrants

Exercise Price

Financing Warrants

200,000,000

1.0p

Advisor Warrants

5,000,000

1.0p

Debt Settlement Warrants

6,000,000

0.5p

All February 2019 Warrants carried a two-year life which ended yesterday on 18 February 2021.

Power Metal can now confirm that, save for the 40 million Financing Warrants held by insiders and connected parties, further details of which are provided below (the “Insider Warrants”), the Company has received valid exercise notices for 100% of all the February 2019 Warrants.

The Company is currently processing exercise notices and will provide an Exercise of Warrants market announcement in the coming days. 

Warrant Exercise Proceeds and Working Capital Summary

In total the exercise of the February 2019 Warrants to date has raised an additional £1.68 million for the Company and in total all warrant exercises in 2020/2021 have raised circa £2.9million. 

This inflow of monies has significantly increased the Company’s working capital, including cash and listed investments, which currently stands at circa £3.28 million.

Extension of Insider Warrants

As at 18 February 2021 the following February 2019 Warrants held by Directors or their related parties  remained outstanding (“Insider Warrants”):

Warrant Holder

N umber of Warrants

Exercise Price

Paul Johnson

10,000,000

1.0p

Andrew Bell

10,000,000

1.0p

Red Rock Resources plc

20,000,000

1.0p

The Insider warrants were issued following participation in the February 2019 Financing.

The Company is currently finalising its audited financial statements for the year ended 30 September 2020, which Power Metal expects will be announced to the market in the week commencing 22 February 2021, consequently the Company is in a close period.

In addition the Company is currently managing numerous exploration programmes and corporate activities across its portfolio, including matters pertaining to its Australian gold joint venture, Red Rock Australasia Pty Limited, in which the Company holds a 49.9% interest (with joint venture partner Red Rock Resources plc (LON:RRR) holding 50.1%).

As a result, the February 2019 Warrants held by Paul Johnson (Chief Executive Officer of Power Metal), Andrew Bell (Chairman of Power Metal and Red Rock Resources plc) and those held by Red Rock Resources plc, could not be exercised on the expiry date of 18 February 2021 and may be extended under the warrant instrument, as outlined below.

Under the February 2019 Warrant instrument clause 2.3 provides that should any February 2019 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.

Given the level of ongoing operational activity there is a material likelihood that the receipt of price sensitive information could frequently restrict the ability of Paul Johnson, Andrew Bell and Red Rock Resources plc to exercise the February 2019 warrants.

Reflecting the above the Company has extended the Insider Warrants expiry date by three months to a new expiry date of 18 May 2021. 

RELATED PARTY NOTE

The extension of the Insider Warrants held by Paul Johnson, Andrew Bell and Red Rock Resources Plc as outlined above, have been treated as a related party transaction for the purposes of AIM Rule 13.  

Scott Richardson Brown and Edmund Shaw, being the independent Directors for the purposes of the extension of the expiry date of the Insider Warrants held by Paul Johnson and Andrew Bell and Red Rock Resources Plc consider, having consulted with the Company’s nominated adviser, SP Angel, that the extension of the warrant expiry date to 18 May 2021 to such related parties is 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 (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

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

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

Power Metal Resources #POW – Australia Gold Joint Venture – Exploration Commences

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of Red Rock Australasia Pty Ltd (“RRAL”) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.

Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (LON:RRR)  holding a 50.1% interest.

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

“As promised with the grant of licenses as announced yesterday RRAL have moved quickly to launch ground exploration with further information on the initial programmes outlined below.

Given over 12 million ounces of mined gold in the Ballarat West and Ballarat East mining camp, we are particularly eager to expedite exploration as RRAL targets a major gold discovery in the Victoria Goldfields, Australia.”

Background

RRAL announced on 2 February 2021 the grant of three of its exploration licence applications in Central Victoria, Australia – EL007271, EL7281 and EL7285.

The granted tenements comprise approximately 215km2 and form a key part of RRAL’s central to south Ballarat project group.  These tenements (along with current applications) surround and overlie the existing Ballarat West and Ballarat East mineralized lode systems – a mining camp reported to have produced over 12 million ounces.  Modern production continues today at the Ballarat East mine.

RRAL is beginning work immediately on evaluating previously identified areas of interest within all tenements.  A map showing the granted licenses and providing the location of prospects named below may be viewed on the POW website through the following link:

https://www.powermetalresources.com/p/238/exploration-map-1

INITIAL TARGETED EXPLORATION PROGRAMME

Granted License EL007271

Coincident geochemical and radiometric anomalies from early work along with historical reconnaissance mapping and sampling has already identified three strong prospects in EL 007271 to the south of Ballarat.  These prospects are considered as possible southern extensions to the main lode systems of Ballarat.  All three (O’Laughlin, Scotsburn and Enfield) are a high priority for immediate work.

The O’Laughlin prospect is coincident with a broad potassic anomaly and weakly anomalous geochemical signature.  It covers minor hard rock historical workings that remain largely undocumented whilst areas of alluvial workings exist in the valleys on the side of the main ridge confirm the likelihood of gold shedding from within the prospect area.  Nearby, Scotsburn displays a similar geochemical and radiometric signature and sits north along strike from O’Laughlin.

The Scotsburn prospect comprises a more consolidated line of workings for over a kilometre to the well-known Locomotive Extended mine and shafts north of Buninyong (southeast of Ballarat).

The Enfield prospect (or Monmouth prospect) covers the historical area of the Monmouth and Happy Thought mines which are also largely undocumented however the prospect area is considered potentially to cover the southern extension of the Ballarat West lode system.

RRAL has already initiated a comprehensive soil sampling program over the areas in conjunction with detailed field mapping. The sampling is using both traditional MMI (mobile metal ion) low level analytical methods as well as evaluating the efficacy of portable XRF as a cost-effective alternative allowing a significantly higher number of samples to be collected with a shorter turnaround for results. In conjunction with the extensive soil sampling, field mapping and discrete sampling of quartz veins both within workings and newly identified at surface will be undertaken. It is anticipated that the outcomes of the first phase of exploration, if successful, will lead to confirmation that significant mineralization is present and will allow drilling to commence later in the year.

Granted License EL 007285

To the north EL007285 is considered to hold the northern extension of the Ballarat West lode system and further work on compiling historical data into a 3D model to facilitate drill planning is under way.

Satellite Data Analysis

A further exploration tool in use is satellite data from the Aster and Sentinel-2 satellites, where using machine learning, our consultants have trained five statistical classifiers, called Linear Discrimination Functions (LDFs), on the Au occurrences to recognize gold mineralization from 16 spectral abundances unmixed from the Aster mosaic, and have similarly created a classifier from the ten reflective bands (unmixed into 16 spectral abundances) from the Sentinel data.

This satellite thermal and high spatial resolution VNIR/SWIR (visible and near-infrared/short-wave infrared) imagery may be used to extrapolate gold occurrence information out to the rest of the project area. Identification of minerals in the scene from spectral unmixing may also inform geological understanding of the area.

This extra exploration layer, continuously refined, along with geophysics, geochemistry and geological interpretation may improve drill targeting and the odds of discovery in a brownfields environment such as the Ballarat Gold Fields

THE BALLARAT PROJECT AREA

Geology

In general terms, the geology of the Ballarat South project comprises a thick sequence of Ordovician turbidite sediments. The sediments have been folded and subsequently faulted under east/west compression.  During the compressional phase, some brittle deformation occurred, resulting in the development of several reverse faults.

These reserve faults as well as bedding plane slip within shales have acted as conduits for fluid flow from within the metamorphosed sedimentary pile.  Gold hosted quartz veins formed as a result, often in complex arrays of orientations within a broadly mineralized envelope.

Overlying the sediments in part is extensive flows of Tertiary age volcanism.

Previous Exploration

The Ballarat region has seen exploration activity since the initial discovery of gold in the 1850s with mining progressing from surface alluvial mining to deep lead mining to some hard rock mining over a period of 80 years. From the 1980s onwards interest in the area renewed as explorers completed first phase surveys including broad airborne geophysical surveys, soil sampling, and mapping.

Their work included minor exploration drilling focused largely upon the Ballarat East and West lodes.  Whilst they did identify numerous other targets, limited technology for evaluating mineralisation beneath the cover particularly the lava flows restricted much of the exploration.  This coupled with a fluctuating gold price has left much of the region surprisingly underexplored.

As a result, RRAL can now capitalize on the positive results reported in the previous literature and continuously learn from the progress of current exploration in the region, and is fast tracking exploration efforts with an initial focus on already identified prospects.

FURTHER INFORMATION

Joint Venture Company – RRAL

RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc (“POW”). Paul Johnson, CEO of POW and Andrew Bell are directors of RRAL.

Applications

RRAL has lodged applications for sixteen new gold exploration license areas covering approximately 2,336 km2 in the Victoria Goldfields of Australia as follows:

License Application Number

Project Name

Area (km2)

EL007271

(granted)

Blue Whale

133

EL007281

(granted)

Blue Chip

74

EL007282

Blue Sky

489

EL007285

(granted)

Blue Ribbon

8

EL007294

Red Queen

130

EL007301

Mt Bute

85

EL007327

Blue Stocking

60

EL007328

Blue Yonder

168

EL007329

Evergreen

486

EL007330

Blue Angel

202

EL007385

Sardinia

  4

EL007460

Kilmore West

349

State land within EL007271

 

[EL007505

EL007506

EL007507]

 

 

[9

9

8]

EL007540*

(3 competing applications)

Outer Ballarat

148

Total

c 2,336

 

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

The technical information relating to planned exploration in this report is compiled by David Holden, BSc, MBA, MEM,  who is a member of the Australian Institute of Geoscientists. Mr Holden has experience in the style of mineralisation and type of deposit under consideration. Mr Holden is the Exploration Manager of RRAL.

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 (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

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

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

Power Metal Resources #POW – Australia Gold Joint Venture with Red Rock Resources #RRR receives first license grants

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of Red Rock Australasia Pty Ltd (“RRAL”) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.

Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (LON:RRR)  holding a 50.1% interest.

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

“The grant of three licenses marks a highly important moment for the Australia gold joint venture, enabling RRAL to move forward with active exploration in a highly prospective group of licenses in the Victoria Goldfields, centred on the historic mining centre of Ballarat.

We will be publishing early exploration plans shortly, something all parties have been preparing for over a number of months and utilising the RRAL Ballarat headquarters as the centre of the operational work.

In addition we continue to work on corporate activities surrounding the RRAL business, which given the level of interest shown in the Victoria Goldfields and now with the grant of the three licenses, becomes all the more relevant.

Importantly, Power Metal is particularly well funded and is able to immediately invest in gold exploration programmes to build what we believe will be considerable value in this unique and significant opportunity.”

Highlights:

  • RRAL has received formal license grants for three of its license applications as follows:
    • The 133 sq km “Blue Whale” license south and east of Ballarat (EL007271)
    • The 74 sq km “Blue Chip” license west and south of Ballarat (EL007281)
    • The 8 sq km “Blue Ribbon” license north of Ballarat (EL007285)
  • All three licenses are granted for a period of five years
  • RRAL is to launch an expeditious exploration programme further details of which will be announced shortly.

FURTHER INFORMATION

Joint Venture Company – RRAL

RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc (“POW”). Paul Johnson, CEO of Power Metal and Andrew Bell, Chairman of Power Metal are directors of RRAL.

Granted Licenses

RRAL has received notice that its applications for the three licenses where applications had been expedited have been successful, and that it has now been granted the three licenses nearest to the regional centre of Ballarat, namely EL007271 (“Blue Whale”), EL007281 (“Blue Chip”), and EL007285 (“Blue Ribbon”).

These licenses cover 215 sq km forming an outer ring around Ballarat, along the Ballarat trend and covering high priority areas where RRAL has early drill targets that it is developing.

RRAL Applications

RRAL is also one of four applicants for the 148 sq km tenement EL007540 compulsorily surrendered by the owners of the Ballarat mine which forms a close-fitting inner ring around the Ballarat Mine.  The EL007540 ground is surrounded by RRAL’s now granted tenements and if granted to RRAL would link them.

In total RRAL has now lodged applications for an additional 13 new gold exploration license areas covering approximately 2,121 km2 in the Victoria Goldfields of Australia as follows:

License Application Number

Project Name

Area (km2)

EL007282

Blue Sky

489

EL007294

Red Queen

130

EL007301

Mt Bute

85

EL007327

Blue Stocking

60

EL007328

Blue Yonder

168

EL007329

Evergreen

486

EL007330

Blue Angel

202

EL007385

Sardinia

4

EL007460

Kilmore West

349

State land within EL007271

 

EL007505

EL007506

EL007507

 

 

(9)

(9)

(8)

EL007540*

(3 competing applications)

Outer Ballarat

148

Total

c 2,121

 

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

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 (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

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

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

Power Metal Resources #POW – Director Dealings

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company was notified that today Paul Johnson, Chief Executive Officer of the Company, purchased on market  1,000,000 ordinary shares of 0.1 pence each in the Company at a price of 1.78p per Ordinary Share through his Self-Invested Personal Pension (“SIPP”) (£17,800 invested). 

Following the above purchase Mr Johnson has a beneficial interest in a total of 61,500,000 Ordinary Shares, representing approximately 7.12% of the issued share capital of the Company.

PDMR Disclosure

The notifications below, made in accordance with the requirements of the EU Market Abuse Regulation, provide further detail on the director’s share dealing.

View TR1 here

Power Metal Resources plc was also notified today of the following Director Dealings.

Paul Johnson, Chief Executive Officer of the Company, today transferred 6,250,000 ordinary shares of 0.1 pence each in the Company to his wife Michelle Louise Johnson, at nil consideration.

Following the above inter-spousal transfer Mr Johnson’s beneficial interest in the Company is unchanged at a total of 61,500,000 Ordinary Shares, representing approximately 7.12% of the issued share capital of the Company.

Andrew Bell, Chairman of the Company, today transferred 4,210,526 ordinary shares of 0.1 pence each in the Company to his wife Margaret Stephanie Bell, at nil consideration.

Following the above inter-spousal transfer Mr Bell’s beneficial interest in the Company is unchanged at a total of 22,282,403 Ordinary Shares, representing approximately 2.58% of the issued share capital of the Company.

View TR1’s here

**Ends**

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement. 

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

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