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Power Metal Resources #POW – Business Financial Review and Warrant Update
13th January 2021 / Leave a comment
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce a business financial review and warrant update for shareholders.
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
“Power Metal has multiple exploration programmes underway alongside significant corporate activities in and around certain of our projects.
Given the extent of our activities I would like shareholders to also know that your Company is in a strong financial position and is well funded to complete all its currently planned exploration work, including drilling programmes underway at present.
Moreover, after the current programme of extensive exploration activities to 31 March 2021 are complete and paid for, the Company will still have significant financial resources and remain in a strong position. This is further explained below with information regarding where we are with business operations, key financial exploration commitments and our underlying financial position.
In addition, I would draw shareholders attention to the “Warrant Update” section below which confirms Power Metal has successfully exceeded the price hurdle to enable acceleration of certain warrants. Recognising Power Metal’s strong financial position we consider there is no requirement to exercise any right to accelerate warrants at this time.
Finally, the Company notes that in the Final Results for the year ended 30 September 2019 (announced 20 May 2020) reference was made to a planned fundraising in November 2020. Given the £1 million raised in July 2020 and the receipt of warrant exercise monies since August, there was no need to undertake a fundraising in November 2020.”
BUSINESS AND FINANCIAL REVIEW
Power Metal’s working capital position as at 12 January 2021 was circa £2.72 million including Pounds Sterling, US Dollars, Australian Dollars and Canadian Dollars and the current value of the Company’s listed investments. Power Metal has no debt, and all trade creditor invoices received by 12 January 2021 have been deducted from the working capital figure above.
The Company’s anticipated exploration and corporate spending for the period to 31 March 2021 is currently estimated at circa £0.6 million and as a result following the completion of the period to 31 March 2021 the Company expects to still hold a robust working capital position.
The table below provides a further breakdown of the current operational and the cash funding position of each project in the Power Metal portfolio. For specific larger expenditure items we provide information of the cash commitments expected in the period to 31.3.21.
The inclusion of the table below is designed to increase transparency and detailed disclosure for shareholders enabling a fuller understanding of the cash requirements of the business in the coming months and helping to validate the strength of the Company’s underlying financial position as outlined above.
The assumptions underlying ongoing exploration and corporate costs are subject to change and are provided for guidance only.
Furthermore, should there be additional receipts of warrant monies the Company would be in an increasingly strong financial position and able to further accelerate project activities if deemed appropriate.
Table: Power Metal Detailed 2021 Project Operational and Financial Breakdown:
PROJECT |
EXPLORATION FOCUS |
POW INTEREST |
OPERATIONAL POSITION
|
PROJECT FINANCIAL INFORMATION(Cash Costs) |
AUSTRALIA Victoria Goldfields JV with Red Rock Resources plc (LON:RRR)
|
Gold |
49.9% |
13 licence applications covering a footprint of 2,336 km2.. Prepared 11 historic project reports including exploration planning and a National Instrument NI 43-101 technical report covering 8 applications. Awaiting initial licence grants for 3 priority licence applications (EL007271/7281/7285) and progressing potential listing plans on a North American stock exchange and other possible joint venture initiatives. |
Power Metal has paid in full all contributory costs into the Joint Venture (“JV”) to date. In the period to 31.3.21 we have provided for general cash costs to run the JV Ballarat office and for a step up in exploration activities in Q1 2021 subject to the receipt of granted licences. |
BOTSWANA Ditau Camp Project SJV with Kavango Resources plc (LON:KAV)
|
Rare Earths |
50% |
2 licences (1,386km2) with Rare earths potential established from recent exploration work. First stage orientation work complete and follow up work announced 4.1.21. |
Power Metal has made advance payments of US$150,000 to cover its 2-year sole exploration commitment under the strategic joint venture (“SJV”) agreement ahead of schedule. Power Metal has also paid its £10,000 initial contribution to corporate restructuring costs for the SJV, with the intention of initiating the process for a potential listing of the SJV in 2021. |
BOTSWANA Kalahari Copper Belt Project (SJV with Kavango Resources plc (LON:KAV)
|
Copper Silver |
50% |
2 licences (1,294km2 ) directly to the southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries. Soil sampling programme underway with initial samples identifying zinc pathfinder in x-ray fluorescence (“XRF”) analysis. Follow up work announced 23.12.20. |
|
BOTSWANA Molopo Farms Complex Project
|
Nickel Copper PGMs |
Up to 50.96% |
3 licences (1,780km2) with multiple targets identified from electromagnetic survey and ground geophysics. Drilling of four high profile targets underway with two holes complete and extensive technical analysis underway. Thick ultramafic zones have been intersected and in hole KKME 1-6 visible sulphides have been identified as announced 11.1.21. |
Power Metal is spending US$500,000 to earn into a 40% direct project ownership which along with its 18.26% project holding company interest, will give a 50.96% effective economic project interest to Power Metal. To date circa US$292,641 has been paid with a further US$207,359 (circa £151,952) included in cash costs to 31.3.21. |
CAMEROON Cobalt Blue Project
|
Cobalt Nickel |
100% |
4 licences adjacent to, or within 50km of the Nkamouna/Nada cobalt/nickel deposit. Review of exploration and commercialisation options reaching an advanced stage. |
Further update to follow regarding the Company’s plans and financial commitment. |
CANADA Silver Peak Project
|
Silver
|
Earn -in to 30% |
Mineral claims over historical Eureka-Victoria Silver Mine and high grade, intrusion related, polymetallic Ag-Pb-Zn-Cu veins. Summer 2020 channel sample programme included a delineated bonanza grade silver up to 0.50m @ 14,937 g/t Ag, 3.05 % Cu & 11.95 % Pb. In November, drill hole SP2020-01intersected a rubbly vein zone between 1.52m to 1.83m which assayed 0.31m @ 5,270 g/t (169.5 troy oz/tonne) silver as announced 29.12.20. Planned recommencement of drilling in Spring 2021.
|
As part of the earn-in to 30% Power Metal has committed to cover CAD$250,000 on exploration in the period to September 2021. To date CAD $141,048 has been paid covering expected spend to 31.3.21 and leaving CAD$108,952 remaining later in 2021. |
THE DEMOCRATIC REPUBLIC OF THE CONGO Kisinka Project
|
Copper Cobalt |
70% |
Exploration licence of 41 carrés miniers (each 84.95 ha) with a 6.8km copper/cobalt anomaly identified. Geophysics programme launched in late 2020 (as announced 15.12.20) and finalising the conversion of the licence to a Permis d’Exploitation (production license) with a 25-year life. |
Advance payments made to cover geophysical programme costs. Further costs of circa US$30,000 are expected in the period to 31.3.21. |
TANZANIA Haneti Project JV with Katoro Gold plc (LON:KAT)
|
Nickel Copper Platinum Group Metals (‘PGM’) Gold etc |
35% |
Large polymetallic land package of c.5,000 km2 including 80km long ultramafic complex with drill ready nickel sulphide/PGM targets. Currently undertaking Rotary Air Blast drill programme at Haneti (as announced 30.12.20). |
Power Metals has already made advance payments towards maiden drill programme costs. Balancing Power Metal drill costs are expected to be circa US$55,000 in the period to 31.3.21. |
USA Alamo Gold Project
|
Gold |
Earn-in up to 75% |
Package of mining claims covering c.946 acres prospective for gold following the discovery of native gold nuggets near surface. Follow on work underway (as announced 11.12.20 and after completion of the reconnaissance survey in summer 2020) with further update to market expected shortly. |
Power Metal has committed to minimum exploration spend in the 12 months to July 2021 of US$100,000, of which US$50,000 has been paid and a further US$50,000 is expected in the period to 31.3.21. In addition, a further US$25,000 of property payments to the vendor were made in December 2020 in accordance with the earn-in commitment. |
WARRANT UPDATE
On 10 December 2019 Power Metal announced an Equity Placing and Subscription which included the grant of 175,000,000 warrants exercisable at a price of at 0.70p per new ordinary share of 0.1 pence each in the Company with an exercise period ending on 10 December 2021, (the “Financing Warrants”).
The Financing Warrants were subject to an acceleration clause whereby should the volume weighted average share price (“VWAP”) exceed 2.25p for 10 consecutive trading days, the Company may write to warrant holders providing 10 working days’ notice of accelerated exercise, with 15 working days thereafter for payment.
The Company can confirm that in the 10 consecutive trading day period of 24 December 2020 to 11 January 2021 the Power Metal VWAP exceeded 2.25p and therefore the Company has the right to accelerate any unexercised Financing Warrants.
For the avoidance of doubt Power Metal is not at this time proposing to utilise the above acceleration clause.
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
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 the subject of 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 – Botswana Strategic Kavango Resources #KAV Joint Venture Update
6th January 2021 / Leave a comment
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update with regard to the Strategic Joint Venture (“SJV”) with Kavango Resources plc (“Kavango”)(LON:KAV) covering precious, base and strategic metal opportunities in Botswana.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“The Strategic Joint Venture with Kavango is gathering considerable momentum with proactive exploration underway at the Ghanzi Project in the Kalahari Copper Belt and at the Ditau Project.
Power Metal and Kavango are to accelerate the SJV both from an exploration and corporate perspective, including the plans for a potential listing on a North American or UK stock exchange as soon as practicable.
To fund the proactive exploration programmes and the preparation for a listing of the SJV, Power Metal has accelerated remaining payments under the SJV agreement, meaning all financial commitments thereunder have now been satisfied in full, and earlier than initially planned.
Further information in respect of ongoing exploration findings and the SJV listing plans will be provided in the near future.”
Highlights:
- Power Metal and Kavango announced a new SJV on 21 September 2020, bringing four Botswana prospecting licences held by Kavango into the SJV arrangement.
- The four licences form two distinct projects, namely:
- the Ghanzi Project (two licences covering 1,294.2km2 in the Kalahari Copper Belt (“KCB”) in south west Botswana located directly to the southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries);
- the Ditau Project (two licences covering 1,386km2 and prospective for rare earths and other mineralisation).
- The SJV agreement included a condition that Power Metal will pay the first US$75,000 toward Ditau Project and Ghanzi Project exploration spend within 12 months and a further US$75,000 in the subsequent 12 months (the “Initial Spend”). Power Metal was able, at its sole discretion, to accelerate the Initial Spend of US$150,000 into the first 12 months of the SJV agreement period.
- Power Metal has satisfied the US$75,000 first 12 months Initial Spend and has now elected to accelerate the second year Initial Spend and has therefore paid Kavango a further US$75,000.
- In addition the SJV agreement stipulated Power Metal was to provide a fund of up to £10,000 to cover the costs of the corporate structuring necessary in respect of the SJV. To clear this amount Power Metal has made a payment to Kavango of £10,000.
- All initial SJV agreement related Power Metal amounts due have now been satisfied in full on an accelerated basis. Going forward both Power Metal and Kavango will be required to fund 50% of SJV costs, or be diluted in line with standard industry dilution provisions.
- Exploration work on the two SJV projects continues at pace, with the latest updates provided in the Power Metal market announcements of 23 December 2020 (Ghanzi Project – Kalahari Copper Belt) and 4 January 2021 (Ditau Project).
THE SOUTH GHANZI PROJECT
The SJV South Ghanzi Project covers two prospecting licences in the KCB (PL036/2020 and PL037/2020) covering an area of 1,294 km 2 .
The South Ghanzi Project area includes lengthy geological reduction-oxidation (“redox”) boundaries, close to surface, that represent prospective exploration targets.
The redox boundaries were formed several hundred million years ago in active sedimentary basins flooded by shallow seas. Organic matter accumulating on the sea floor created anoxic conditions, which formed a chemical barrier to metal ions rising upwards through the sediments as the basin subsided. The change in chemistry caused the precipitation of metal species (carbonates, sulphides etc.) including copper and silver on or just below the redox boundary.
Subsequent tectonic activity folded the sedimentary layers, which was often accompanied by the concentration of metals into the fold hinges.
Several large-scale copper/silver ore deposits have been discovered on the KCB in association with fold hinges in areas now held under licence by Sandfire Resources (ASX:SFR) and Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and may be amenable to open pit mining operations.
Accumulations of sulphide metals can be traced along the strike of redox boundaries (sometimes for many kilometres), since they often have a higher magnetic signature than the surrounding rock.
THE DITAU PROJECT
The SJV Ditau Project comprises two prospecting licences (“PLs”) (PL169/2012 & PL010/2019)that cover an area of 1,386km2.
Geophysical and geochemical analyses by Kavango in the two PLs have identified 10 magnetic geophysical “ring structures” (including at least one possible kimberlite structure).
The “ring structures” are potential associated with alkaline and carbonatite intrusions.
Alkaline rocks are the principal source of REEs including the much sought-after elements Neodymium (Nd) and Praseodymium (Pr), which are used in the manufacture of the new generation of electric vehicles (“EVs”), magnets and other high-tech applications.
One of the geophysical ring structures is a 7km x 5km magnetic and gravity anomaly with significant zinc-in-soils values. Assay and whole rock geochemistry results from two drill holes drilled on this ring structure in 2019 by Kavango demonstrated the presence of an extensive zone of altered Karoo sediments sitting above a mafic intrusive body. The alteration extended to over 300m in depth in both holes, which were 1.8km apart. The geochemistry obtained from the drill core suggested that the alteration was due to “fenitization”, a type of extensive alteration associated with alkali magmatism and carbonatites.
Fenite alteration is particularly associated with carbonatite intrusions, where it occurs as an aureole or halos around the carbonatite intrusive. It can indicate the presence of mineralised intrusions in a similar way that alteration patterns are used in other ore systems, such as porphyry copper deposits.
Kavango suspects that the post-Karoo fenitized rocks intersected at Ditau may be comparable to the Longonjo weathered carbonatite in Angola being developed as a neodymium and praseodymium open pit mine by Pensana Metals Limited.
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.
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
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 – Update on Ditau JV Project in Botswana – Orientation Work Completed
4th January 2021 / Leave a comment
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an exploration update for the Ditau Project in Botswana.
Ditau includes two prospecting licences (PL169/2012 and PL010/2019) in a Strategic Joint Venture (“SJV”) with Kavango Resources plc (LSE:KAV) (“Kavango”) with Power Metal and Kavango each having a 50% interest in the SJV.
Highlights:
First stage of orientation work at Ditau complete:
-
- Orientation work conducted on magnetitic anomaly “I10”, the first of ten geophysical “ring structures” previously identified at Ditau
- Results from the I10 orientation exercise will shape the calibration of survey equipment for follow-on surveying of the remaining 9 ring structures
- Each ring structure is believed by the Company to have the potential to host carbonatite rocks which are the principal source of rare earth elements (“REEs”)
- Initial work completed at I10 comprises:
- Controlled-source audio-frequency magnetotellurics (“CSAMT”) geophysics orientation on a 5km line run at 50m station interval
- Soil geochemistry samples taken over the same line at 200m spacing
- Soil geochemistry sampling assay results and processed geophysics expected by early February
- Follow up surveys at I10 planned for mid-January:
- Gravity survey at 50m intervals
- Ground magnetic geophysics survey at 12.5m station spacing
- Further planned work at Ditau to include:
- Extensive geophysical surveying and soil sampling planned in Q1/Q2 2021
- Subject to successful exploration outcomes an exploratory drill campaign is anticipated in Q2/Q3 2021
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“The Strategic Joint Venture with Kavango is surging ahead with work completed and announced from the Kalahari Copper Belt, and now from the Ditau Project.
With the Ditau Project we are seeking a discovery of rare earth elements (REEs), which are highly valuable and sought after commodities, particularly from secure and stable jurisdictions such as Botswana.
I look forward to reporting further updates from Botswana and the Ditau Project as material developments occur.”
THE DITAU PROJECT
The Ditau Project comprises two prospecting licences (“PLs”) (PL169/2012 & PL010/2019) that cover an area of 1,386km2. Geophysical and geochemical analyses by Kavango in the two PLs have identified 10 magnetic geophysics “ring structures” (including at least one possible kimberlite structure).
The “ring structures” are potential carbonatites.
Carbonatites are the principal source of REEs including the much sought-after elements Neodymium (Nd) and Praseodymium (Pr), which are used in the manufacture of the new generation of electric vehicles (“EVs”), magnets and other high-tech applications.
One of the geophysical ring structures is a 7km x 5km magnetic and gravity anomaly with significant zinc-in-soils values. Assay and whole rock geochemistry results from two drill holes drilled on this ring structure in 2019 by Kavango demonstrated the presence of an extensive zone of altered Karoo sediments sitting above a mafic intrusive body. The alteration extended to over 300m in depth in both holes, which were 1.8km apart. The geochemistry obtained from the drill core suggested that the alteration was due to “fenitization”, a type of extensive alteration associated with alkali magmatism and carbonatites.
Fenite alteration is particularly associated with carbonatite intrusions, where it occurs as an aureole or halos around the carbonatite intrusive. It can indicate the presence of mineralised intrusions in a similar way that alteration patterns are used in other ore systems, such as porphyry copper deposits.
Kavango suspects that the post-Karoo fenitized rocks intersected at Ditau may be comparable to the Longonjo carbonatite in Angola being developed as a neodymium and praseodymium open pit mine by Pensana Metals Limited.
DITAU EXPLORATION
Kavango had previously planned to complete the orientation work to calibrate its surveying equipment at the Falconbridge carbonatites. However, by focussing its efforts on the I10 magnetic anomaly, the Company will be able to accelerate its plans for the more extensive surveying of all 10 “ring structures” identified at Ditau.
The initial CSAMT orientation line over I10 is 5km long and has been plotted at 50m station intervals. Soil samples were taken at stations every 200m.
Gravity surveying at 50m intervals and ground magnetic surveying at 12.5m intervals is planned along the orientation line in mid-January.
The objective of the CSAMT survey is to identify the position of the various rock types below surface by testing their electrical resistivity
Evidence from carbonatites found in the area by Falconbridge in the 1970s suggests that the Ditau intrusive bodies are located at the bottom of the Kalahari cover sands, approximately 75m below surface.
The fractured nature of carbonatites means mineralisation can be dispersed within long, thick veins of carbonatite material.
Kavango’s immediate priority is to confirm whether the 10 “ring structures” at Ditau contain carbonatite. The exploration process for this is relatively straightforward. Assuming the CSAMT surveys isolate specific drill targets, these can be tested by low-cost, shallow Reverse Circulation (RC) drilling.
Kavango and Power Metal will provide further updates in due course.
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.
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
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 – Company Q&A
1st December 2020 / Leave a comment
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide the questions and answers to a number of investor queries received recently by the Company. Where possible the question below is that presented to us, however where multiple questions involve similar themes, we have consolidated into a single question to avoid duplication.
Power Metal also notes that investors wishing to understand the current position of the Company may refer to the recently uploaded Investor Presentation which is available on the Company’s website and may be viewed through the following link:
https://www.powermetalresources.com/p/193/presentations
COMPANY Q & A
Power Metal Resources has received numerous investor queries recently and we are pleased with the increasing interest shown in our activities. Where possible questions have been grouped into categories as outlined below.
Project Operations – Exploration and Corporate Activities
QUESTION |
RESPONSE |
Botswana – Molopo Farms Complex
Regarding drill #1 – why was the drill stopped when the anomaly identified via geophysics indicated an anomaly stronger with depth? |
The hole was angled at 60 degrees and was over 500m in length and passed between harder and softer rock as it descended. The possibility of some deviation as we drilled makes it possible that we have missed by a few metres a steeply dipping target identified by geophysics. The mudstones encountered could be generating a conductive anomaly but are likely to cover a greater areal extent as they are a known horizon in the Molopo Farms Complex of rocks, so this would be inconsistent with the areally restricted conductive anomaly identified from our geophysical work. One possibility is that the geophysics took a gently dipping anomaly and a steeply dipping anomaly, the latter being our target, and modelled the two as being one. It was more logical given the above to stop the hole at the target depth and move on to drill the next hole while analysing the core and doing down-hole geophysics. If we had carried on drilling, we could have possibly drilled right past our target. With the downhole geophysics we can look around and below the hole for 300m in each direction and so get a more accurate 3-D geophysical model and interpret the dip and orientation of the strata encountered in the drill core. Unless results do not justify it, we will return to the hole and if necessary, deviate from it or drill deeper to test the assumed target.
|
Botswana – Molopo Farms Complex Is the geological model for the Molopo Farm Complex looking for geology similar to the Bushveld Igneous Complex, the Great Dyke in Zimbabwe or some other large ultramafic complexes?
|
Each ultramafic complex has its own characteristics depending on the conditions that produced it. We are drilling a satellite ultramafic intrusive which is part of, and of similar age to, the Large Bushveld Igneous Province, as described on this page of the KKME website: https://www.kalaharikey.co.uk/mopo-farms-project/geology-of-the-molopo-farms-complex/ . |
Australia – Victoria Goldfields What is the status of the Australia gold JV and will shareholders receive a distribution from Power Metal if the Australian Joint Venture Company is listed on a North American stock exchange?
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We have various work streams underway in respect of the Australia gold joint venture and it is a very proactive period for this important part of the Power Metal business.
Our immediate focus is the advancement of the technical project information and exploration planning in preparation for the launch of efficient and targeted ground exploration which can only commence on the grant of licence applications.
In parallel we continue to work on the potential listing of some or all of the interests on a North American stock exchange as announced to shareholders.
In all discussions our focus is rapid advancement of exploration and significant commitment by any potential partners to ground exploration where we believe considerable value can be added through proactive implementation of exploration programmes.
The potential listing could generate an asset of considerable value given the strategic nature of the ground under application in Victoria. That valuation would increase, perhaps significantly, with the grant of licences and the ability to launch ground exploration to validate our geological propositions. There is clear evidence of significant gold mineralisation across the licence application footprint.
The question of whether we would specifically seek to distribute any listed activity gains from the Australia JV, or indeed from any other corporate transaction undertaken by Power Metal or its partners, is a little early to definitively answer at this stage.
It is fair to say that we are attracted to the distribution model, which allows shareholders to see a return from their investment in Power Metal in addition to the appreciation in Power Metal share value that commercialisation of our interests could provide.
There are many elements to consider in this including what is best to advance the projects, the approach of any partners to transactional structuring, positioning Power Metal to enable distributions and considering the taxation elements to seek distribution efficiency from a tax planning perspective.
There are many work streams to complete if Power Metal were to consider distributions, but they can be run concurrently, and they could include seeking the approval of shareholders at a General Meeting.
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Australia – Victoria Goldfields How does Power Metal value its interests in the Australian Joint Venture Company and particularly its licences?
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This is a complicated exercise as valuation depends on many factors including inherent geological and commercial potential, market conditions, granted or application status, historic and future spend and perhaps significantly the strategic significance of the JV interests.
We are developing valuation metrics, however for a real sense of valuation in the current market we can only look at recent transactions for similar interests and gain a feel for what might be achievable.
As stated previously a major factor for us is the commitment to significant ground exploration and financial investment to support that exploration work. We believe that proactive exploration stands a very good chance of identifying gold mineralisation and that will be a major uplift to any project valuation.
As you can see we are working with so many variables, but we know that having identified and built such an important and strategic land package in Victoria, we now have a duty to manage this professionally and seek the highest returns reasonably achievable from this unique opportunity.
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Australia – Victoria Goldfields Will Power Metal be seeking an income stream from any commercial transactions in respect of the Australian interests?
|
The main objective is the pursuit of exploration and corporate transactions that will maximise the capital return from the opportunity. Income wise, we will likely focus on royalty income streams from interests as and when we involve third parties in a project or projects.
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Australia – Victoria Goldfields There is a lot of interest being shown in Victoria gold projects including ECR Minerals plc one of your neighbours. Is this something you are also experiencing for the gold JV in Victoria?
|
It is increasingly clear that the Victoria Goldfields is a particularly attractive destination for gold exploration.
The strategic nature of our Australia gold JV, with the size of land package assembled and the extent of prospectivity that’s evident from our published technical work, means that there will be interest and we have stated this previously.
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Australia – Victoria Goldfields Are there plans to re-process mine dumps in the Victoria Gold Fields in Australia once appropriate licences are granted?
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This is not something we have looked at so far, but as licenses are granted, we will investigate the evidence at surface where there has been previous mining activity, which may include small gold-bearing dumps or tailings. |
USA – Alamo Gold Project Do you expect to be able to mine nuggets of gold from near the surface at the Alamo gold project in Arizona? |
As announced by the Company via RNS on 20 November 2020, the plan is to undertake mini-bulk sampling alongside other exploration techniques in December 2020. That should tell us more about project mineralisation including the prospectivity for gold nuggets near surface. We are also looking at the potential for other mineralisation and the potential bedrock source of the gold mineralisation that, as we have clearly established to date, exists near-surface. The latter was also demonstrated during our January 2020 due diligence field trip where we identified gold nuggets during the digging and metal detecting of shallow pits at the project. This is early stage exploration and the prospect of mining, although ultimately our principal objective, is something we must build towards with exploration. If successful, that exploration will confirm gold mineralisation of a magnitude to support permit applications and associated studies that would be the precursor steps to the launch of mining operations.
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Tanzania – Haneti Project You have announced that mobilisation is underway but when will drilling actually commence at the first drill location? |
Power Metal has a communications approach that articulates through regulatory news announcements the status and progress on all of our material project interests. This includes Haneti which is a very material opportunity for the Company. Power Metal, with our partners Katoro Gold plc have announced pre-mobilisation, mobilisation of drilling and intend to announce an update on full drill commencement as appropriate, including if possible images on our website photo gallery showing the drill in action at the drill location.
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Tanzania – Haneti Project Why has Haneti not been drilled before if it is such an important strategic opportunity? |
On a general level the junior resource sector has been experiencing challenging conditions for some time and in many cases, there has not been the financial capital around to pursue project acquisitions or impactful exploration activities. Many great discoveries have, in our view, been made in scenarios where projects have not been able to attract sufficient project capital to enable progression of exploration. Haneti is however a project that has received exploration capital over many years and has built to a position where the next stage is drilling. Importantly Haneti now has two public companies working together to operate and finance drilling. Given the level of interest shown in the project, and in nickel sulphide exploration opportunities generally, it makes commercial sense all round to crack on with drill programmes which is what is happening at Haneti.
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Canada – Silver Peak When do you expect to receive assay results from the work undertaken recently? |
As with all our projects we push for the receipt of assay data as soon as possible. With the Covid-19 restrictions around the world in 2020 the Company has not been in a position to accurately confirm timescales around the receipt of assay data from third parties. As soon as assay results are received and interpreted by the Company, an announcement will be made to shareholders.
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Canada – Silver Peak Given we are now in winter season, how do you expect to take Silver Peak project forward? |
We generated highly positive exploration findings from the summer due diligence sampling work including bonanza grade silver and significant copper and lead. We await the assays from limited follow up drilling and sampling we were able to undertake in the short programme that we recently announced was curtailed by poor weather conditions. Using the above and the historic exploration data available to us, we will, with our partners, determine the next exploration and corporate steps for the Silver Peak project. We believe the Silver Peak project has great potential and now must identify the appropriate pathways for its development.
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Canada – Silver Peak Were you disappointed with the weather disruption at Silver Peak and what can you do to get the project back on track? |
Absolutely. Power Metal is keen to push each project as hard as possible and we put a lot of work into drill programme design and implementation. The weather hit us twice with storms damaging access and meaning our original programme with a larger rig could not go ahead. Then the snow brought our man-portable rig operation to an abrupt and early conclusion. We believe shareholders prefer a proactive approach to exploration and clearly, we pushed hard to get the Silver Peak drilling done whilst ensuring safety of operations at the site in the more challenging conditions.
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DRC – Kisinka Is it possible to extract value from the Kisinka project in the DRC and are you not concerned that money invested may be locked in? |
We have operations around the globe in different jurisdictions and the DRC is one country that we believe investors perhaps do not fully understand or appreciate. We think that will change. The Company’s experience to date has been very positive however and suggests to us that there is real value to be created in the DRC, not least because of the immense metal prospectivity across the country. Power Metal is pursuing a potential new copper-cobalt district at Kisinka which is situated near to Lubumbashi in the south-east of the country. The quality of technical reports that we receive from operations at Kisinka is extremely good demonstrating the professionalism of our partners. Also, based on our experience the ability to secure licences and permits for operations is in many respects more straightforward than many jurisdictions where the process is more complex and takes longer. Added to all this there are many international companies that are operating producing mines in the DRC including Ivanhoe’s Kamoa-Kakula under development now and which is expected to become one of the largest global producing mines.
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DRC – Kisinka When do you expect to complete the geophysics and start drilling? |
The high-grade copper and cobalt from assays recently announced means that Kisinka is a key project interest and we are looking to commence follow on exploration as soon as possible. As announced 20 November 2020 the Company is working on setting up a ground magnetic survey and a ground electromagnetic survey, to detect both low magnetic and chargeable lithologies and indicate structures and faulting and areas of carbonate rocks, in order to generate precise drill targets with our in-country partners. The Company will make a further announcements to the market as appropriate in respect of the proposed programme at Kisinka.
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Botswana – Kavango Resources JV When will we hear more about the exploration work from the Kalahari Copper Belt? |
As announced in the Company’s ‘Project Portfolio Update’ on 5 October 2020 the Company is awaiting the results of a soil sampling programme. An update on that programme, its findings and the next steps will be released to the market once results have been received and interpreted.
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Botswana – Kavango Resources JV Have you refined your plans for a listing of the JV on a Canadian or UK stock exchange? |
Plans remain on track and we have been putting in place the steps to achieve our listing objective. We will provide an update on this to the market as appropriate.
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General – Project Valuations Do you have anything you could provide to investors with valuation indications on the projects, such as project NPVs? |
We have a portfolio of early stage project interests, albeit some are in a more advanced stage with drill programmes running. It is more difficult to ascribe valuations to earlier stage projects. A similar situation exists on discovery, where the full extent of a project’s valuation will only be developed as projects are progressed and more is understood about the scale and type of mineralisation. To a certain extent the involvement of third parties on project earn-in or joint ventures can assist with an assessment of likely value also. In addition, project spinouts especially involving compensation in marketable assets such as listed equity will also help the developing value assessment. As soon as we can start to attribute specific values to project interests and investments we will seek to do so.
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General – New Opportunities Are you still looking for new opportunities and are you limited in the regions you would operate in and the commodities you would explore for? |
The Company actively assesses any new opportunities it is presented with although it has to be said we have already noted a rise in vendor expectations regarding project valuations. We are of the belief that we would not have been able to assemble our current portfolio of projects on the same terms today given the stronger natural resources environment. We were given a tremendous opportunity by the difficult market conditions of 2019/2020 and now shareholders have the advantage of a portfolio constructed in challenging markets, as those same markets move into what we believe will be a stronger phase. We want to develop the Company around clear themes, demonstrating consistency and clear strategic rationale. Therefore, we think it’s wise to follow the overall business structure of precious metals in North America and Australia and base metals in Africa.
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Business Management
QUESTION |
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How is the Company able to manage 9 projects and commit adequate management time to each?
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Whilst the management of a number of projects is a challenge, the Company ensures that it is adequate staff and management time available for each project as appropriate. The Company is also enhancing management oversight to ensure regular engagement of London plc with the project management and operational teams running each of our interests.
We also have support with back office including financial accounting and compliance through an external provider. In addition, we have assistance to manage and coordinate our extensive external communications.
We will bring in further bespoke managerial resources as our business expands and our working capital grows.
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Should Power Metal spin out interests will there be a continuing involvement in management and if so how will that be possible given the management requirements of the core business?
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It depends on the nature and type of transaction undertaken. Where needed we will of course apply our management time and other resources to assist.
However, our focus is on ensuring any spin outs or similar are into wrappers or deal structures that come with experienced management able to deal holistically with the commercial challenges without relying too heavily on Power Metal central resources.
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What measures do you have in place to ensure your management and operations team have due regard for environmental protection and the protection of local communities?
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This is absolutely vital especially as our business expands its active operations in the field. We already have a keen focus on health and safety, environmental and community protection and that will continue.
We seek to follow best practice across the above areas and generally from a corporate governance perspective reflective of the resources available to a smaller company.
To add further weight to this we are currently reviewing a number of trade associations from whom we can secure further support on best practice.
We expect to join trade associations in the near term to further demonstrate our desire to remain proactive in this area.
By way of example our Australian JV has just employed a community relations and environment officer as its second employee showing the high priority we give to these matters.
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Financing Strategy
QUESTION |
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You have disclosed your working capital position and appear confident you are in a strong financial position, however how reasonable is this given the large spread of projects and work being undertaken on them?
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The answer revolves around more than just the absolute amount of working capital we hold and also includes how we spend our money, the level of fixed financial commitments and our access to additional working capital sources. The latter point we deal with in the next question so for now we will focus on the matters of spending and financial commitments.
We are quite keen on the control of spending and have our main areas of spend under control. Much of a junior resource company spend falls into central overhead and exploration spend. When corporately acquisitive, then acquisition costs can also be material.
For central overheads the direct costs in relation to the exchange listing and advisors surrounding that are largely fixed and need to be budgeted for. We pay our central costs promptly and carry almost no trade creditors for any material periods. We have no material debt.
Much central cost in junior resource companies relates to director salaries and expenses. At Power Metal, we believe against our peers in the sector we are modestly paid and have very little outlay for director personal expenses.
The aim for us (as holders beneficially interested in approximately 14% of the Company’s issued share capital) is to see money invested in the ground to make exploration and commercial progress including major metal discoveries.
If we do that our shareholdings may rise considerably in value and the financial returns from that would be way more beneficial to directors than excessive board salaries in the early stages of the Company’s development.
Turning to exploration spending, for the vast majority of our project spend, our exploration outgoings are flexible and generally entirely at our volition. This means we can spend if we wish to, but curtail exploration spend across our business if we wish to, for whatever reason. That spend control is important.
Equally for new acquisitions we have always been controlled and not overly exposed ourselves with heavy acquisition terms. We have used cash as part of acquisition terms but only modestly as cash is king in our sector.
Generally, where possible we have also used our shares for new acquisition vendor payments. So far that model has worked well to preserve cash and acquire opportunities on reasonable terms (with shared upside for vendors who hold interests in Power Metal stock and benefit as the shares increase in value).
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Where do you feel most additional working capital will be generated; from financings, warrant exercises or asset disposals?
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It’s difficult to be precise on future working capital sources but we do have some degree of expectation subject of course to market conditions and buoyancy in the junior resource sector.
Power Metal could undertake financings and the Board are confident that money could be raised as required. This has been amply demonstrated by the £2.7m raised in financings since February 2019 and, save for the initial restructuring in February 2019, Power Metal financings in December 2019 and July 2020 were conducted at the then market price.
Discounted financings are not what Power Metal seeks to undertake as that we consider that potentially damaging for shareholder value and confidence in general.
Ideally, we are seeking to build our working capital to become financially self-sustaining. This would mean that we would not need to undertake financings unless we chose to do so on strong terms or to value-adding institutional investors.
Warrant exercises have provided a considerable amount of additional working capital. The amount raised through warrant exercises since August 2020 has enabled the company to be aggressive with its exploration and corporate plans. In essence each warrant exercise provides us with funds to accelerate our operational activities.
Alongside the above we have a strategic investment portfolio that is growing in value and should that continue, it would provide a source of further working capital should this be needed for operations.
The area where we feel considerable working capital could be generated is from spinouts or other similar commercial transactions where we exchange some of our direct ownership of an interest for mainly cash or shares in other entities.
If those entities are liquid listed vehicles, then the effect is to have an asset easily translatable into cash when and if needed to fund our own operations.
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Can you explain the warrant exercise process, its impact on shareholder dilution and whether there are any restrictions on the warrants?
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Power Metal receives an exercise form from a warrant holder and checks the validity of this to an underlying warrant register. If acceptable this exercise is reconciled to a receipt of cash into the Company’s bank account.
For all valid exercises we secure board approval to issue equity, prepare a market announcement and an AIM admission form for the new equity to be admitted to trading on AIM.
The end result is a market announcement confirming the warrant exercises and cash received.
The new shares are generated by the registrar and admitted to trading on AIM thereafter.
The warrant exercises increase the issued share capital with such information provided in the requisite market announcement at the time and the increased amount of shares is updated to the Company’s website AIM Rule 26 page on the Investors’ section of the site accordingly.
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Can you provide further information on all outstanding warrants and options to give a better understanding of potential dilution?
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Details of all warrants issued by the Company can be found in regulatory announcements released by the Company and within the Company’s Financial Report and Accounts.
Additionally, the Company will be adding to its new website in due course a full schedule of all financial instruments including all warrants and options held generally by investors and also those held by the board of directors.
This schedule will include all final exercise dates and any special terms including accelerators whereby the company can elect to expedite the use of warrants by holders and if not used, cancel the remainder warrants although, as noted above, all such information can be found within the relevant announcements made by the Company.
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What amount of revenue do you expect to generate from your projects and how will that revenue be derived?
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Power Metal is generally seeking capital returns where an increase in the value of projects is secured through exploration or corporate structuring.
In some cases that value may be crystallised through a disposal of some or all of a project interest for cash or shares in an acquiring company.
In respect of any disposals we are also keen on longer term consideration that could be described as “revenue” including royalties from interests disposed where Power Metal would receive payments should an interest enter production.
Royalties can be a highly valuable source of income or revenue over the longer term so potentially could become a valuable part of our business asset base.
In addition, royalty income streams can be sold for material cash sums, providing optionality to Power Metal on how value should be crystallised.
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When do you anticipate institutional investors will be interested in Power Metal?
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There are of course institutions of all shapes and sizes, with varying business rationales and many are not suitable partners for our company.
We are open to reputable and recognised institutional investment but are also comfortable without it.
Well regarded institutional finance can increase investor confidence in Power Metal, however we are well funded presently and are entirely comfortable with our access to future working capital as outlined in some detail above.
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Marketing and Communications
QUESTION |
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Can you produce company level and project specific factsheets to help investors understand the business and its constituent elements?
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The Company intends to undertake this exercise once the website update has been completed. |
Will you be having updated analyst reports prepared for Power Metal?
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Yes, we expect our brokers will provide updated research to the market as they deem appropriate.
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For further information please visit https://www.powermetalresources.com/ or contact:
Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
First Equity Limited (Joint Broker) |
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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 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 – Project Portfolio Update
5th October 2020 / Leave a comment
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a project portfolio update for shareholders.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“Power Metal has built a diverse portfolio of interests and has multiple projects in the active exploration phase. The latest position for all our project interests is outlined below, together with details of targeted near-term news flow across our business.
To assist investors and shareholders keep track as we push ahead with multiple exploration programmes we continue to enhance our communications tools embracing both public and investor relations disciplines. The Company’s corporate website is being updated at present and a new website is to be launched in the coming month. We are also looking to launch or enhance project level websites where appropriate.
We work hard to keep our corporate presentation fully up to date with each Company announcement, so it should remain a primary tool for shareholders wishing to learn more. Today we are also launching a Project Dashboard for shareholders which will be held on our website and contain an updated overview of each project, its status and near-term plans.
Power Metal are seeking large scale metal discoveries through active exploration, much of which is currently underway or about to commence. Given the level of activity it’s important we remain open to feedback. Therefore, should shareholders have any questions, or suggestions, please let us know via info@powermetalresources.com.”
Project Information Sources for Shareholders:
Further details in respect of Power Metal’s nine project interests can be found on the Company’s website https://www.powermetalresources.com/s/30/projects
The Company maintains a frequently updated Corporate Presentation which provides an overview of each project and additional corporate information and this may be viewed through the following link:
https://www.powermetalresources.com/p/193/presentations
Recognising the breadth of the Company’s projects, and the ongoing active exploration across numerous projects, Power Metal have today launched a Project Dashboard. This provides an updated list of Company’s projects, their current status and each project’s targeted near term newsflow.
The Dashboard is now embedded into the Company’s website and a pdf copy may be downloaded through the following link:
https://www.powermetalresources.com/Uploads/8668-POW_Project_Summary_Updated.pdf
The latest project status and targeted news flow is also outlined below. Shareholders should note that the targeted outcomes and plans may be impacted by a variety of factors, of which readers will be aware the continuing Covid-19 pandemic remains a material factor. Power Metal works with its in-country partners to mitigate and manage all risks proactively and efficiently to ensure where possible the safe continuation of ground operations.
Power Metal Project Status and Targeted News Flow:
PROJECT | METAL | POWINTEREST | CURRENT STATUS | TARGETED KEY NEWS 2020 |
AUSTRALIAVictoria Goldfields Joint Venture | Gold | 49.9% | 12 applications over (2,188 km2.) Completed historic project reports, exploration planning and NI 43-101. | Potential grant of exploration licences, starting with first 3 priority applications, then launch of exploration programmes.Progress updates for listing on North American stock exchange. |
BOTSWANADitau Camp Project | Rare Earths | 50% | 2 licences (1,386km2) Rare earths potential established from recent exploration work. | Commence orientation study to assist in the characterisation and exploration vectoring for the Ditau Project carbonatite ring-structures potentially hosting rare earths. |
BOTSWANAKalahari Copper Belt Project | CopperSilver | 50% | 2 licences (1,386km2) southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries. | Exploration results from soil sampling, then ground magnetic surveying, and possibly airborne electromagnetic surveying, leading into drill target development. |
BOTSWANAMolopo Farms Complex Project | NickelCopperPGMs | Up to 50.96% | 3 licences (1,780km2) with multiple targets identified from electromagnetic survey and ground geophysics. | Planned launch of maiden drill programme and thereafter delivery of results from drilling to the market including on-site findings and laboratory assays. |
CAMEROONCobalt Blue Project | CobaltNickel | 100% | 4 licences adjacent to, or within 50km of the Nkamouna/Nada cobalt/nickel deposit. | Announce findings from review of exploration strategies and potential commercialisation options. |
CANADASilver Peak Project | Silver | 30% | Mineral claims over historical Eureka-Victoria Silver Mine and high grade, intrusion related, polymetallic Ag-Pb-Zn-Cu veins. | Planned launch of drill programme targeting high grade silver veins and following channel sampling in September 2020 which highlighted bonanza grade of up to 14,937g/t (482 oz/t). |
DRCKisinka Project | CopperCobalt | 70% | Exploration licence of 41 carrés miniers (each 84.95 ha) with a 6.8km copper anomaly identified. | Copper/cobalt assay results pending from 2020 pitting programme.C onversion of the licence to a Permis d’Exploitation (production license) with a 25 year life. |
TANZANIAHaneti Project | NickelCopperPGMsGold etc | 35% | Large polymetallic land package of c5,000 km2 including 80km long ultramafic complex with drill ready nickel sulphide/PGM targets. | Planned launch of maiden drill programme and thereafter delivery of results from drilling to the market including on-site findings and laboratory assays |
USAAlamo Gold Project | Gold | Up to 75% | Package of mining claims covering c766 acres prospective for gold following the discovery of native gold nuggets near surface. | Planned follow on exploration programme after initial short reconnaissance survey conducted successfully in August 2020. |
REGULATORY STATEMENT
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
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 metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.
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 Establishes A New Strategic Joint Venture In Botswana
21st September 2020 / Leave a comment
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce the acquisition of a 50% interest in a 2,680 km2 portfolio of base and strategic metal project interests in Botswana (the “Acquisition”) to be held in a new strategic joint venture holding company further details of which are provided below.
BACKGROUND
On 15 April 2020 Power Metal and Kavango Resources plc (LON:KAV)(“Kavango”) announced a conditional acquisition agreement in respect of the Ditau Camp project in Botswana, held 100% by Kavango.
In recent months the companies have been involved in discussions, the outcome of which is a new strategic joint venture (“JV”) agreement to create a new joint exploration company, with the objective of floating the company as a Botswana-focused vehicle on a major stock exchange in 2021.
HIGHLIGHTS
– Power Metal to acquire a 50% interest in four Botswana prospecting licenses currently 100% owned by Kavango and forming a new JV between the companies.
– Two prospecting licenses prospective for copper and covering 1,294.2km2 are situated in the Kalahari Copper Belt in central west Botswana located directly to the southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries;
– Two further licenses comprise the Ditau Camp project covering 1,386km2 and prospective for rare earths in south west Botswana;
– Consideration for the acquisition payable to Kavango comprises £75,000 in cash, 6 million new ordinary shares of 0.1 pence each in the Company (“new Ordinary Shares”) at a price of 1.25p each and 5 million Power Metal warrants at 2.0p with a two year life to expiry and in the event of early exercise of 2.0p warrants, replacement warrants at 5.0p;
– In addition, Power Metal commits to sole funding of US$150,000 over a two year period for exploration expenditure across the Ditau Camp and Kalahari Copper Belt projects to ensure expeditious and proactive project exploration with any further expenditure above US$150,000 being funded jointly by Power Metal & Kavango;
– The four project licenses are to be held in a new Botswana private holding company, with an appropriate holding company structure to enable the possibility of the new vehicle to seek a listing on a Canadian or UK stock exchange in 2021.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“The new acquisition announced today is a significant development for Power Metal, adding further strategic metal projects into the business portfolio and in the secure, stable and supportive operating jurisdiction of Botswana. The acquisition also complements Power Metal’s interest in the Molopo Farms Complex project, which is seeking a large-scale nickel-platinum group metal discovery in Botswana, and where a maiden drill programme is planned.
We are keen to develop more insight into the potential of the Ditau Camp project, and this can only be achieved through proactive ground exploration which we intend to undertake with our JV partners. Moreover, the addition of two key Kalahari Copper Belt licences brings the Company into a highly prospective copper territory which, as I have personally experienced, has the potential to deliver considerable discoveries. Again, ground exploration is key, and we intend to be proactive.
It is a pleasure to be working with the Kavango team who have considerable operational experience and a commitment to finding a new large-scale metal discovery in Botswana. This commercially focussed outlook is what we share at Power Metal. We have found the two teams have complementary skills and intend to blend our resources in the search for a metal discovery.”
FURTHER INFORMATION:
Transaction Terms
Power Metal is to acquire a 50% interest in the two licenses comprising the Ditau Camp project (PL169/2012 and PL010/2019) and two licenses in the Kalahari Copper Belt (PL036/2020 and PL037/2020).
Consideration for the acquisition comprises payment to Kavango as follows:
– An immediate payment £75,000 in cash;
– The issue to Kavango of 6,000,000 Power Metal new Ordinary Shares at a price of 1.25p each, for value of £75,000 (the “Acquisition Shares”);
– The issue to Kavango of 5,000,000 warrants to subscribe for Power Metal new Ordinary Shares at a price of 2.0p each with a two year life to expiry from admission to trading on AIM of the Acquisition Shares (the “Acquisition Warrants”).
Should the Power Metal Volume Weighted Average Share Price (“VWAP”) meet or exceed a price of 7.5p for five consecutive trading days Kavango will then have 14 calendar days to exercise the Acquisition Warrants and make payment to Power Metal or the Acquisition Warrants will be cancelled.
Should Kavango exercise the Acquisition Warrants within 12 months of issue, they will receive replacement warrants to subscribe for Power Metal new Ordinary Shares at a price of 5.0p each with a two year life to expiry from admission of the Acquisition Shares (the “Super Warrants”).
Should the Power Metal VWAP meet or exceed a price of 10.0p for five consecutive trading days Kavango will then have 14 calendar days to exercise the Super Warrants and make payment to Power Metal or the Super Warrants will be cancelled.
Power Metal will pay the first US$75,000 toward Ditau Camp and KCB exploration spend within 12 months of today’s date and a further US$75,000 in the subsequent 12 months (the “Initial Spend”). Power Metal may at its sole discretion accelerate the Initial Spend into the first 12 months.
Kavango and Power Metal must pay their share of additional spend after the Initial Spend on Ditau Camp or the KCB licenses or will dilute their percentage interest in line with standard industry provisions.
Kavango and Power Metal will be joint operators.
The Ditau Camp and KCB projects will be transferred into a new private Botswana company which will be held 100% by a UK or overseas public company which will seek a listing on a Canadian or UK stock exchange targeting a listing in 2021.
Power Metal will provide a fund of up to £10,000 to cover the costs of the above corporate structuring which will be undertaken in line with local regulations for the licenses and the holding companies and which will seek regulatory approvals where relevant.
Kalahari Copper Belt Project (“KCB”)
The KCB stretches 1,000 km from northern Botswana to central Namibia and is prospective for copper-silver deposits. The KCB is relatively underexplored and is a key emerging trend globally, located in stable and pro-mining jurisdictions.
In recent years the KCB has attracted substantial exploration interest. This has resulted in significant copper-silver discoveries including:
Cupric Canyon’s Zone 5 deposit (“Zone 5”), which hosts a mineral resource of 91.7 million tonnes (“Mt”) grading at 2.1% copper and 14 grams a tonne (“g/t”) of silver.
MOD Resources’ and Metal Tiger’s (LON:MTR) commercial discovery at T3, which was subsequently acquired by Sandfire Resources (ASX:SFR) (“Sandfire”) in October 2019.
The T3 Project currently hosts a mineral resource of 60.2Mt grading at 1.0% copper and 14.0g/t silver and an Ore Reserve of 342,700 tonnes of contained copper and 14.6 million ounces (“Moz”) of silver.
Sandfire’s A4 Dome satellite discovery, which is located directly to the west of T3 and is subject to an ongoing resource drilling campaign.
Prior to applying for any Prospecting Licenses (“PLs”), Kavango undertakes extensive desktop and due diligence studies. In addition, Kavango analyses publicly available exploration data to enhance its geological and geophysical understanding of the area.
Kavango was granted two PLs, in April 2020 and which lie in a highly prospective area immediately south of the District capital of Ghanzi. The PLs covering a total of 1,294.2 km2 are as follows:
– PL 036/2020 – (590.20km2) for initially 3yrs to 31 March 2023 — Yr1 exploration expenditure BWP 548,000 (about £37,500) – currently 100% owned by Kavango
– PL 037/2020 – (704.00km2) for initially 3yrs to 31 March 2023 — Yr1 exploration expenditure BWP 548,000 (about £37,500) – currently 100% owned by Kavango
The JV plan to commence field work on the two KCB licenses shortly and will likely comprise both regional and detailed soil geochemistry. Planned work also includes a ground magnetic survey to refine the positions of the prospective geological contacts, below Kalahari sand cover, with the option of follow-on electromagnetic survey work to identify potential conductors associated with those contacts. Controlled-source audio-frequency magnetotellurics (“CSAMT”) surveying will be carried out over soil anomalies to define the stratigraphy, structures and mineralisation.
Drilling is planned by the JV partners when suitable targets have been identified.
Ditau Camp Project
Ditau comprises of two prospecting licenses (PL169/2012 and PL010/2019), which cover an area of 1,386km2. Surface prospecting work by Kavango has involved geochemical soil sampling and magnetic and gravity geophysical surveys. Analysis of results from this work, and pre-existing airborne magnetic geophysics data, has enabled the identification of 10 separate magnetic “ring structures” within the Ditau license area.
One of these ring structures is a 7km by 5km magnetic and gravity anomaly (the “Ditau Prospect”). In Q1 2019 Kavango conducted an initial 1,000m diamond drill programme at the Ditau Prospect across two holes, 1.8km apart.
Drill core assay and whole rock geochemistry results from the two holes were released in August 2019 and whilst they did not identify economic mineralization, the results confirmed the presence of highly altered Karoo sediments, sitting above a mafic intrusive body. The alteration observed in the drill cores stretched to >300m depth.
These results were considered encouraging because the age of the Karoo rocks (c.120million years), the high level of their alteration and the fact this alteration stretched to >300m depth; valuable geological pointers, when exploring for potentially economic mineral deposits.
Further, the geochemistry obtained from the drill core of the two Ditau Prospect holes suggested the metasomatic alteration encountered was due to a process known as fenite alteration or “fenitization”. Fenite alteration is particularly associated with carbonatite intrusions, where it occurs as an aureole or halos around the carbonatite intrusive, and it has significant potential to be used as an exploration tool to find mineralised intrusions in a similar way alteration patterns are used in other ore systems, such as porphyry copper deposits.
Carbonatites and alkaline-silicate rocks are the most important sources of Rare Earth Elements and niobium. REEs include much sought after elements, such as Neodymium and Praseodymium, which are used in the manufacture of the new generation of electric vehicles (EVs) and other high-tech applications.
By way of comparison, Kavango consider the post-Karoo age of the fenitized rocks intersected by drilling at the Ditau Prospect, is comparable to the post-Karoo at the Longonjo carbonatite which is being developed as a neodymium and praseodymium open pit mine, by Pensana Metals Limited in Angola.
Subsequent to the release of the August 2019 drill results from Ditau, Kavango learned that Canadian miner Falconbridge Limited (“Falconbridge”) drilled into 3 carbonatites (the “Falconbridge Carbonatites”) in the early 1970s at a location less than 50km from Ditau and hosted by similar Karoo country rocks.
Falconbridge was looking for kimberlites in this area, which lies within a cluster of over 20 kimberlites discovered at the same time. Kimberlites, otherwise known as “diamond pipes”, are the most important source of diamonds mined today. However, carbonatites have similar looking magnetic and gravity anomalies to these diamond-bearing formations.
The carbonatites that Falconbridge intersected were just below the Kalahari sand cover and therefore would have been amenable to open pit mining. This implies they are post-Karoo age and therefore potentially comparable to the Ditau ring structures.
Although the Falconbridge Carbonatites are located outside of the Kavango held ground the company is reviewing the Falconbridge results and designing an orientation study to assist in the characterisation and exploration vectoring for the Ditau ring-structures. As part of this orientation study the Falconbridge Carbonatites will be surveyed using ground magnetic and gravity geophysics and soil geochemistry.
The JV partners will provide further updates, concerning future work plans at Ditau Camp project in due course.
NEXT STEPS
Commencement of exploration at both the Ditau Camp and KCB projects.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, 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.
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 6,000,000 Acquisition Shares to be admitted to trading on AIM which is expected to occur on or around 28 September 2020 (“Admission”). Following Admission of the Acquisition Shares, POW’s ordinary issued share capital will comprise 816,066,542 ordinary shares of 0.1 pence each.
This number will represent the total voting rights in the Company, and following Admission, may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules. The new shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.
REGULATORY STATEMENT
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
CONTACT INFORMATION
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 metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.
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 – Conversion of Kavango Resources Loan Notes
17th July 2020 / Leave a comment
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce that the Company has now converted its loan notes in Kavango Resources plc (“Kavango”)(LON:KAV) into new ordinary shares of 0.1 pence each (the “Kavango Shares”).
BACKGROUND
On 15 April 2020, Power Metal announced a Conditional Acquisition – Botswana, centred around a transaction to acquire a 51% ownership interest in the Ditau Camp project held outright by Kavango. This announcement may be viewed on the Company’s website through the following link:
https://www.powermetalresources.com/n/n189/conditional-acquisition-botswana
Within the conditional acquisition agreement signed with Kavango, and in parallel, Power Metal subscribed £38,000 to a convertible loan note (“Kavango CLN”) as outlined in the announcement.
CONVERSION NOTICE
Power Metal has today served a notice to convert its entire £38,000 Kavango CLN into 4,750,000 new ordinary Kavango Shares at a conversion price of 0.80p and equating to 2.46% of Kavango’s issued share capital following this conversion.
Power Metal will under the terms of the Kavango CLN agreement be issued with warrants to subscribe for a further 4,750,000 new ordinary Kavango Shares at an exercise price of 1.0p and with a three year life to expiry to 21 April 2023, (the “Kavango Warrants”).
The Kavango Warrants contain an early exercise provision so that should Power Metal exercise any of its Kavango Warrants within one year of 15 April 2020, a replacement warrant will be issued to subscribe for a further new ordinary Kavango Share of 0.1p each at a price of 2.50p, also expiring three years from 21 April 2020.
DITAU CAMP DUE DILIGENCE
Power Metal and its technical team continues to work with Kavango in relation to the conditional acquisition of a 51% ownership interest in the Ditau Camp project in Botswana and further updates will follow as appropriate.
CHIEF EXECUTIVE OFFICER STATEMENT
Paul Johnson, Chief Executive Officer of Power Metal Resources commented: “The share price of Kavango has moved up a little since the April 2020 transaction which is positive, however we remain of the view that the market has yet to fully appreciate the size and potential of their projects in Botswana, which is a superb jurisdiction for resource exploration juniors.
We will continue to watch the wider Kavango story unfold whilst working on Ditau Camp project due diligence.”
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
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 discovery of precious or base metals.
The Company has a portfolio including key interests in Australia, Botswana, Cameroon, The DRC and Tanzania. The interests represent large scale exploration projects targeting mainly cobalt, copper, gold, nickel and platinum group metals. Project interests range from early stage greenfield exploration to later stage drill ready prospects.
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 metals exploration.
Power Metal Resources plc #POW – Strategic, Operational and Financial Update
14th July 2020 / Leave a comment
The Financing unlocked the potential of Power Metal, by providing the financial capability to push on with existing interests more innovatively and aggressively. This announcement explains in more detail important elements of strategy, operations and financial management, in light of the funding raised. HIGHLIGHTS · Power Metal has two key strategic objectives: 1. To make one or more major metal discoveries within its gold, base and strategic metal projects and then crystallise the value of such discoveries for shareholders’ benefit; 2. To build its working capital and ‘balance sheet’ toward financial self-sufficiency and to reduce forward reliance on funding from the market to achieve its business objectives. · The Company currently has five main projects and two additional projects in the later stage of due diligence and commercial discussions. Each project has discrete operational targets which may lead to operational news flow, an outline of which is provided below . · Following the Company’s Financing announced on 6 July 2020 the Company can confirm its total assets as at 10 July 2020 amounted to £3.04 million. Within total assets, cash, and tradable listed investments amounting to £1.7 million (including monies raised in the Financing). Paul Johnson Chief Executive Officer of Power Metal Resources plc commented: “At Power Metal I am striving to build a diversified exploration business backed by a strong ‘balance sheet’ to drive the Company towards an ability to self-finance its own activities and break the dependency most juniors have on market financings. I am keen for us to be bold and adventurous with reward weighted risk taking, but with solid underlying principles of risk management covering geopolitical, commodity, operational and financial considerations. In other words, combining boldness with risk management means diversification, which is what we have achieved. Many companies put their business case forward focused around a single major project and concentrate their energies around that. I understand this, but it’s not the Power Metal approach, where instead, in our view, we have numerous major projects, each of which is capable of delivering a transformational discovery and by virtue of this shareholder wealth. It has not been easy building our diversified project portfolio during the challenging junior resource sector conditions of the last 18 months, but it may not have been possible but for those conditions that meant excellent opportunities remained available. So now we find ourselves with a diverse and exciting portfolio of project interests, and with the support of shareholders and investors in the recent Financing, a considerable working capital position with which to drive forward those interests. If we are fortunate in making a major discovery in just one of our projects, we could create significant value for our shareholders. Now to practicality, and how we move forward. We have published below a step by step guide to our operational plans and our underlying financial position. As shareholders will appreciate, not everything goes to plan, but I believe if we are transparent with the approach we are taking, and utilise the financial resources available to us, we will make our business model clearer and a more attractive investment proposition. As a final note, all shareholders and investors are invited to provide feedback on Power Metal, and recommendations or suggestions to enhance what we do are always helpful. Likewise if you have any questions please let us know through info@powermetalresources.com or my telephone number is below and at the bottom of all our market announcements. If you have a question about our business, it will likely be shared by many others, so please ask, and that will also help us to further improve our investor information and market communications. Thanks to all our shareholders for your interest and support. As investors we are all focused on making money from our investments, however following a company’s story can also be an enjoyable part of the investing experience. I believe Power Metal has a fascinating emerging story. Now on with the work!” STRATEGIC OBJECTIVES Power Metal has two key strategic objectives: To make one or more major metal discoveries within its gold, base and strategic metal projects and then crystallise the value of such discoveries for shareholders’ benefit. The Company considers that each of its current projects has the potential to deliver a large-scale metal discovery. The same belief also forms the basis around any selection of new projects brought into the portfolio. Projects will only remain in the Company’s portfolio while they demonstrate the ongoing potential, through exploration findings, to deliver a discovery, and only where the work programmes needed are comfortably within the available financial resources of the Company. In the remainder of 2020, Power Metal has a number of stand-out opportunities that through exploration, could expose shareholders to a major metal discovery. These include: – Molopo Farms Complex project Botswana, (“Molopo Farms Project”) (Following US$500,000 earn-in – 50.96% Power Metal) – drilling is planned for the coming months targeting major nickel – copper – platinum group metal (‘PGM’) targets; – Haneti Polymetallic project Tanzania, (“Haneti”) (up to 35% Power Metal) – exploration drilling plans are being developed to target major nickel – copper – PGM targets; – Australia Gold JV – out of 11 licence applications in the Victoria Goldfields, proactive exploration may be undertaken in 2020 subject to license grants, local approvals and finalisation of targets following completion of the historic exploration and mining database, which includes specific drill target locations in priority licenses. To build its working capital and ‘balance sheet’ toward financial self-sufficiency and to reduce forward reliance on funding from the market to achieve its business objectives. Power Metal is focused on building a large underlying working capital position with which it can move toward financial self-sufficiency and an ability to fund the central and project operational costs through its own financial resources, with reduced dependency on market financings. This is not a model pursued proactively by many junior resource companies where a more traditional model of cash burn for exploration, then restore cash balances through placings, tends to apply. Power Metal aims to do things differently. There are three main ways in which Power Metal intends to build its ‘balance sheet’ working capital: Adopting a dual approach of taking a position in project holding companies alongside direct project participation. To date Power Metal have taken this approach three times with Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key”) – Molopo Farms Project, Katoro Gold Plc (“Katoro”) – Haneti and with Kavango Resources Plc (“Kavango”) – Ditau Camp Project*. *Subject to the completion of successful due diligence The aim is that successful project development will drive the value of the ultimate holding company in which Power Metal has a stake, driving the value of our investment in that company higher. The recent financing has enabled this option to be utilised for further potential transactions should opportunities arise. Monetisation of existing project interests Following acquisition of projects Power Metal plans to move each project forward corporately and technically. From our portfolio certain interests may be vended to third parties or into new listings, in exchange for cash, equity and other forms of consideration which will build the Company’s working capital. Investment in other junior resource sector opportunities In the current climate there are opportunities for significant capital returns to be generated from investment in junior resource equity or related financial instruments. Power Metal has created an internal fund for making investments in other junior resource sector opportunities, which will be referred to as the Company’s “Junior Resource Fund“, with a view to building the value of a portfolio of investments to add to working capital. As the vast majority of the Company’s working capital is deployed to operating projects and associated investments in project holding companies, only a small amount of initial capital has been deployed for the Junior Resource Fund (up to a maximum in total of £75,000 representing less than 5% of Power Metal’s current working capital.)
OPERATIONAL PLANS AND KEY TARGETS Power Metal provides the following overview of its five main projects and two projects under due diligence. This includes a rationale for each project, the work underway and planned and the near-term targets for shareholders to monitor as the Company moves forward.
FINANCIAL REVIEW Current Financial Position (unaudited) Following the subscription financing of £1,000,000 announced on 6th July 2020 Power Metal had total assets of £3,036,970 as follows:
The above ‘Total Assets’ data includes: – Intangible Assets and Unlisted Financial assets from the Company’s Interim Results release on 30 June 2020. – Listed Financial Assets based on the valuation of the underlying financial instruments on 10 July 2020. – Cash and Cash Equivalents drawn from bank and currency account balances on 10 July 2020, together with the 6 July 2020 net subscription financing included. For normal day to day operations Power Metal relies upon its cash balances and listed investments to provide the resources to fund operations. As at 10 July 2020 Power Metal had Listed Financial Assets of £363,726 and Cash and Cash Equivalents per above of £1,276,644, making £1,707,050 to deploy in business operations. Power Metal has the ability to sell or joint venture or otherwise monetise its project interests to generate additional working capital to build its ‘balance sheet’ and to fund its business operations. That is an implicit part of the Company’s financial strategy as outlined above and will in the Company’s view be an important constituent in the building of the Company’s financial strength in the future. The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
For further information please visit https://www.powermetalresources.com/ or contact:
Notes to Editors: Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale discovery of precious or base metals. The Company has a portfolio including key interests in Australia, Botswana, Cameroon, The DRC and Tanzania. The interests represent large scale exploration projects targeting mainly cobalt, copper, gold, nickel and platinum group metals. Project interests range from early stage greenfield exploration to later stage drill ready prospects. 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 metals exploration. |



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