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#TYM Tertiary Minerals – Full Exercise of Broker Option

TYM

Tertiary Minerals plc (AIM: TYM), the London listed explorer focussed on energy transition and precious metals in Nevada and Zambia, is pleased to announce that, further to the Company’s announcement of a fundraising on 19 January 2022 (the “Fundraising”), the Broker Option, a facility to allow existing shareholders to participate in the Fundraising on similar terms to the Placing, has now closed and was exercised in respect of the maximum number of new shares available under the option.

The Broker Option has raised £100,000 at a price of 0.17 pence per share through the issue of 58,823,529 new ordinary shares of 0.01 pence each (“Broker Option Shares”), together with associated Warrants. This brings the total amount raised under the Placing and Broker Option to £600,000 (before expenses).

Admission

The Broker Option Shares will rank pari passu with the Company’s existing ordinary shares and application has been made to the London Stock Exchange for admission of the Broker Option Shares to trading on AIM (“Admission”). Admission is expected to occur at 8.00 a.m. on or around 26 January 2022.

Additional broker warrants

Peterhouse Capital Limited has been issued with an additional 2,941,176 warrants to subscribe for a further new ordinary share at the Placing Price (0.17 pence) per share. The warrants have a term of one year from the date of Admission.

Total voting rights

Following Admission of the Broker Option Shares, the Company’s enlarged issued share capital will be 1,536,263,621 ordinary shares. The Company holds no ordinary shares in Treasury. This figure of 1,536,263,621 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.

Defined terms in the announcement have the same meaning as in the Fundraising announcement, unless otherwise specified.

For more information please contact:

Tertiary Minerals plc:

Patrick Cullen, Managing Director

+44 (0) 1625 838 679

SP Angel Corporate Finance LLP – Nominated Adviser and Broker

Richard Morrison

+44 (0) 203 470 0470

Caroline Rowe

Peterhouse Capital Limited – Joint Broker

Lucy Williams

+ 44 (0) 207 469 0930

Duncan Vasey

#KAV Kavango Resources – Great Red Spot – strong gravity anomaly identified

Kavango Resources plc (LSE:KAV) the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce completion of a ground gravity survey (the “Gravity Survey”) over the Great Red Spot (“GRS”), in Target Area B of the Company’s Kalahari Suture Zone (“KSZ”) project.

The GRS is a previously identified large-scale ~11km diameter magnetic anomaly that has been subject to limited historic exploration.

The Gravity Survey has identified a strong gravity anomaly, which is coincident with the roughly 2250 nanoTesla positive magnetic anomaly of the GRS.

The gravity anomaly has an amplitude of approximately 30 milliGal and is roughly 7km in diameter at its widest along the North-South geophysical lines.

Gravity anomalies are due to density contrasts in rock units relative to the background geology. In mineral exploration a strong gravity anomaly can indicate the presence of an intrusion, alteration and mineralisation.

Highlights

· Visual inspection of drill core from KSZDD001 and reinterpretation of existing magnetic data encouraged Kavango to perform the Gravity Survey

· Gravity Survey was carried out over Target Area B in December, covering boreholes KSZDD001 (drilled to 1,000m) and KSZDD002 (currently at 390m)

· Scintrex CG-5 Autograv gravimeter and Leica GPS1200 RTK differential GPS were used to perform Gravity Survey

· Total of seven 13km lines of gravity data were acquired, including:

–  Five North-South lines at 800m spacing

–  2 East-West tie lines at 2,000m spacing

–  Stations spaced at roughly 200m along each line (460 stations)

· Strong ~30 miliGal Bouguer anomaly detected

· Kavango is now preparing an Audio-Magnetotelluric (“AMT”) survey over the GRS to futher refine its understanding of this target

 

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

“While it is too early to start drawing definitive conclusions, we are keen to pursue the possibility that the Great Red Spot could host stacked mineralised systems.

Although this is a relatively new geological theory for Kavango, it is interesting that it builds on our existing work. The younger, shallower Karoo gabbros over the Great Red Spot remain our primary focus, but we are increasingly aware of the potential for the deeper, much older Proterozoic gabbros to host an entirely separate system.

Reinterpretation of our existing magnetic model helped send us down this path and it is encouraging that the gravity survey results are coincident with the magnetics.

Quite what that system will prove to be remains to be seen, but we are led by the data in this. The more independent evidence we can gather that supports a new deposit, the more compelling the case will become.

This is why we are now prioritising the AMT survey as a next step. Our hope is the AMT survey will provide a third data set, which complements the results from magnetic and gravity surveys.”

 

Keeping an open mind in minerals exploration is crucial. We did not set out last year to find a new potential mineralizing system in the deeper Proterozoic rocks

Background

The Great Red Spot (GRS”) is a previously identified large-scale ~11km diameter magnetic anomaly that has been subject to limited historic exploration.

Thanks to significant advances in geophysical technology and analytical software over the last two decades, Kavango believes it has been able to create a more accurate geophysical model of the Great Red Spot (the “New GRS Model”). The New GRS Model combines historic data with data gathered by the Company in its exploration of the KSZ (announced 22 September 2021).

Following completion of Hole KSZDD001, which was drilled 1,000m into the GRS, preliminary visual inspection of the drill core revealed the presence of sulphides and abundant magnetite throughout the 49m intersection of the Proterozoic gabbro encountered at the bottom of the hole (announced 16 November). Kavango is currently testing the origin of the sulphide and magnetite, through detailed petrographic work and various assay techniques at internationally accredited laboratories in South Africa.

Following further internal analysis, Kavango began to investigate the possibility that the GRS might host two distinct, separate mineralised systems (announced 22 November 2021). These are:

· A younger Karoo-age system prospective for Nickel/Copper/Platinum Group Elements, which Kavango is currently testing through drilling the B1 Conductor

· An older Proterozoic-age system, which Kavango is in the process of developing a mineralisation model for

Kavango believes the coincidental source of the magnetic and gravity anomalies in the GRS may lie within the Proterozoic gabbros.

The purpose of the AMT survey will be to provide a third standalone data set, to deepen Kavango’s understanding of the geophysical anomaly in the heart of the Great Red Spot. Lines are currently being cut for the survey and results are expected in the coming months.

Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc   

Ben Turney

bturney@kavangoresources.com  

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson 

SI Capital Limited (Joint Broker) 

+44 1483 413500

Nick Emerson

#KDNC Cadence Minerals – Cadence Minerals’ lithium asset upgrade after Cinovec’s ‘outstanding results’

Cadence Minerals have enjoyed a dramatic improvement in the quality of their lithium investments after ‘outstanding’ results from the Cinovec mine in the Czech Republic.

The Cinovec mine is operated by European Metal Holdings which has a 49% in the mine. Cadence Minerals holds 8.7% of the equity in European Metal Holdings.

In an announcement made this week, the Cinovec asset received significant upgrades to the resources that included revisions higher to the annual output and the impact of higher lithium prices.

The most recent feasibility study found it is possible to amend the mining process to incorporate the use of paste backfill which will be instrumental in increasing the mines output by 16%.

As a consequence, the Cinovec mine’s expected output has been increased from 25,267 tpa to 29,386 tpa.

The combination of rising lithium prices and the increased production means the projects NPV8 (post tax) increases from $1.108B to $1.938B. This is based on lithium prices of $17,000 which is significantly below the current market price.

“An increased mine life and a resource upgrade that takes the NPV8 from USD1.1bn to USD1.94bn adds substantial value to Cinovec’s already exceptional potential as a future battery grade lithium supply hub for Europe and the rest of the world,” said Cadence CEO Kiran Morzaria.

“Cadence are pleased to remain shareholders and supporters of EMH, and we look forward to further developments.”

The news has seen European Metal Holdings share soar this week to trade at 81p.

Cadence Minerals owns approximately 8.7% of European Metal Holdings following a placing conducted by European Metal Holdings to raise A$14.4 million.

Cadence Minerals stake is worth circa £12.4m with European Metal Holdings shares trading at 81p.

To put this in to context, Cadence Minerals entire market cap is £41m so the market is effectively currently attributing a value of just £28.5m to the rest of Cadence’s assets.

Cadence Minerals Portfolio

Although the latest developments at Cinovec adds tremendous value to a publicly-traded holding of Cadence’s portfolio, their flagship project is the Amapa Iron Ore project which has targets to produce $725 million iron ore per annum.

Cadence Minerals has additional exposure to lithium at the Sonora mine operated by Bacanora Minerals, as well as interest in Northern and Western Australia.

Cadence also has a 30% interest in the Yangibana Rare Earths project operated by Hastings Technology Metal in Western Australia.

 

Read the article on UK Investor Magazine

#BRES Blencowe Resources – Consolidated Africa Holding & Joint Broker

Blencowe Resources Plc (” Blencowe” or the “Company”) (LSE: BRES) has been notified that Consolidated Africa Limited (“CAL”) has today sold its entire holding in the Company (17,725,000 ordinary shares being 10.9% of the issued share capital) to new and existing shareholders arranged through Tavira Securities Limited (“Tavira”).

CAL received 25,000,000 ordinary shares in Blencowe following its sale of the Orom Cross graphite project in 2020.  CAL were locked up for one year following the IPO in June 2020.

Appointment of Joint Broker

The Company is pleased to announce that it has appointed Tavira as its joint broker. Tavira has recruited senior personnel from the Company’s former broker Brandon Hill Capital Limited and Blencowe looks forward to continuing the strong relationship with the team.

Executive Chairman Cameron Pearce Commented:

“We are pleased that the share register has been strengthened following these on market share purchases. We believe with a market cap of approximately £6.5M, the Company is significantly undervalued, as evidenced by our recent Preliminary Economic Assessment which yielded an NPV for Orom-Cross of US$317M. In December 2021 we closed on a £2M fundraise at 5p per share, which has provided sufficient capital to undertake our 2022 work programme at Orom-Cross, including the completion of a Pre-Feasibility Study. An updated resource statement on Orom-Cross is due to be released later this quarter, which we expect will further increase the size and grade of the resource.

We would like to welcome Tavira Securities as co-broker and we look forward to continuing our relationship with the former senior members of the Brandon Hill team going forward.”

For further information please contact:

 Blencowe Resources Plc

Sam Quinn

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

 

Investor Relations

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

 

Tavira Securities

Jonathan Evans

Tel: +44 (0)20 7100 5100

jonathan.evans@tavirasecurities.com

 

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

#MSMN Mosman Oil and Gas – Falcon Update

MSMN

Mosman Oil and Gas Limited (AIM: MSMN) the oil exploration, development, and production company, announces an update in respect of its Falcon project which forms part of the Champion Project in East Texas. Mosman holds a 75% working interest in the Falcon-1 well, the first well to be drilled at the project.

At Falcon-1, an additional Frio sand zone has been perforated at a depth 7,457-7,460 feet. The well has flowed on test at a rate of 1,000 mcfd, but due to the current choke size of 7/64 it has been producing at an average rate over the last 5 days of 576 mcfd (c 113 boepd gross). To balance short term cashflow and long optimize gas recovery over time, the production strategy is to periodically increase the choke size and monitor wellhead pressures. The first increase in choke size planned for this this week is to increase the choke to 8/64.

The current production rate is an increase of 23% compared to average flow rate of c 92 boepd (gross) in the quarter ended 30 September 2021.

John W Barr, Chairman, said: “Mosman is making steady progress to meet our growth objectives, with another strong step forward with this strong increase in production at Falcon.”

The costs of the recompletion were paid from existing cash reserves. The current cash position is c AUD 1 million.

Production numbers for the six months ending 31 December should be available in the next month, once all information has been received.

Mosman is awaiting results from recent drilling and other workovers. This information will be published when it is available.

Qualified Person’s Statement

The information contained in this announcement has been reviewed and approved by Andy Carroll, Technical Director for Mosman, who has over 35 years of relevant experience in the oil industry. Mr. Carroll is a member of the Society of Petroleum Engineers.

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR’) which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this information is now considered to be in the public domain.

Enquiries:

Mosman Oil & Gas Limited John W Barr, Executive Chairman Andy Carroll, Technical Director

jwbarr@mosmanoilandgas.com acarroll@mosmanoilandgas.com

NOMAD and Broker

SP Angel Corporate Finance LLP

Stuart Gledhill / Richard Hail / Adam Cowl

+44 (0) 20 3470 0470

Alma PR

Justine James / Joe Pederzolli

+44 (0) 20 3405 0205

+44 (0) 7525 324431

mosman@almapr.co.uk

Joint Broker

Monecor (London) Ltd trading as ETX Capital Thomas Smith

020 7392 1432

#KAV Kavango Resources – KSZ drill operations recommence

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the recommencement of drill operations on Hole KSZDD002.

On Friday 14 January, Mindea Exploration and Drilling Pty (“Mindea”) mobilised the rig and drill team back to site. Over the weekend the team successfully removed the HQ casing that was left in the hole prior to Christmas to keep KSZDD002 open. Drilling is scheduled to commence during today’s day shift. Operations will then continue on double shift until completion.

KSZDD002 has been designed to intercept the B1 Conductor, a geophysical anomaly that the Company believes is a prospective target for possible massive sulphide nickel or copper mineralisation.

Kavango first identified the B1 Conductor in Q2 2021 (announced 02 July) through a surface Time Domain Electromagnetic (“TDEM”) survey. Independent data analysis at the time confirmed the B1 Conductor gave a conductance reading of 8,200Siemens. For context, the Company’s exploration model is based on identifying drill targets, which exhibit conductance readings between 1,000Siemens and 10,000Siemens (a table can be found here on the Company’s website – https://kavangoresources.com/images/2021/07/02/idealized-resistivity-and-conductivity-spectrum-for-rocks-and-mineralization-kav-ksz.jpg).

Drilling commenced on KSZDD002 on 19 November 2022, with an expected target intercept depth of between 525m and 575m for the B1 Conductor.

Drilling was paused for the Christmas break at 350m. A downhole electromagnetic (“DHEM”) survey was completed on KSZDD002 and the hole was cased off. Independent analysis of the DHEM data increased the estimated conductance reading of the B1 Conductor to 11,000Siemens. KSZDD002 appears to be optimally positioned to intercept the centre of the conductive plate. The B1 Conductor is now estimated to be 600m by 300m in size. The position and dip of the plate remain the same, indicating the B1 Conductor is cross-formational. This suggests the B1 Conductor may have been emplaced by an as yet unspecified intrusive event and is unlikely to be formational.

Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc 

Ben Turney

bturney@kavangoresources.com  

 First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson 

SI Capital Limited (Joint Broker) 

+44 1483 413500

Nick Emerson

#POW Power Metal Resources – MFC Project – Prospecting Licence Renewals

Power Metal Resources plc (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces the renewal of key Prospecting Licences (“PLs”) at the Molopo Farms Complex Project (“MFC Project” or the “Project”) located in southwestern Botswana.

Power Metal holds a 40% direct project interest in the MFC Project and a 20.65% shareholding in Kalahari Key Mineral Exploration Pty Limited (“KKME”), which holds the remaining 60% interest. 

Kavango Resources currently has an option (the “Option”) to acquire up to 85.2% of KKME including Power Metal’s shareholding.  Further details regarding the Option were published in the Company’s announcement released on 26 November 2021 which may be viewed at the following link:

https://www.londonstockexchange.com/news-article/POW/kavango-option-kalahari-key-botswana/15226717

Renewal documentation has been received in respect of PL310/2016 and PL311/2016, with the latter covering the area where drilling was completed in 2021 from which significant nickel intersections were confirmed.  Further details in respect of the licence renewals is provided below.

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

“The renewal of PL310/2016 and PL311/2016 represents an important milestone for the Project, providing a further 2 years for ongoing exploration following the initial successful drilling campaign completed early in 2021.  That campaign confirmed significant nickel intersections from the second hole drilled (KKME 1-6) including individual assay results up to 1.7% Ni and 0.55g/t Pt, representing the highest nickel grade achieved from the Molopo Farms Complex to date.

Kavango Resources are continuing their Option due diligence work programme, and we are looking forward to the receipt of their findings in the coming weeks.”

Prospecting Licence Information

Licence Number

Size

Licence Type

Licence Term

Licence Period End

PL310/2016

221.4km2

Second Renewal

2 years

31.12.2023

PL311/2016

486.2km2

Second Renewal

2 Years

31.12.2023

PL202/2018

771.0km2

First Renewal

2 years

30.09.2023

Total

1,478.6km2

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

#ECR ECR Minerals – Holding(s) in Company

TR-1: Standard form for notification of major holdings

NOTIFICATION OF MAJOR HOLDINGS (to be sent to the relevant issuer and to the FCA in Microsoft Word format if possible)i

1a. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached ii :

ECR Minerals Plc

1b. Please indicate if the issuer is a non-UK issuer (please mark with an “X” if appropriate)

Non-UK issuer

2. Reason for the notification (please mark the appropriate box or boxes with an “X”)

An acquisition or disposal of voting rights

X

An acquisition or disposal of financial instruments

An event changing the breakdown of voting rights

Other (please specify)iii:

3. Details of person subject to the notification obligation iv

Name

Colin Braidwood

City and country of registered office (if applicable)

4. Full name of shareholder(s) (if different from 3.)v

Name

Colin Braidwood

City and country of registered office (if applicable)

5. Date on which the threshold was crossed or reached vi :

11/01/2022

6. Date on which issuer notified (DD/MM/YYYY):

11/01/2022

7. Total positions of person(s) subject to the notification obligation

% of voting rights attached to shares (total of 8. A)

% of voting rights through financial instruments
(total of 8.B 1 + 8.B 2)

Total of both in % (8.A + 8.B)

Total number of voting rights of issuervii

Resulting situation on the date on which threshold was crossed or reached

8.00%

N/A

8.00%

1,018,058,551

Position of previous notification (if

applicable)

7.02%

N/A

7.02%

1,018,058,551

8. Notified details of the resulting situation on the date on which the threshold was crossed or reached viii

A: Voting rights attached to shares

Class/type of
shares

ISIN code (if possible)

Number of voting rights ix

% of voting rights

Direct

(Art 9 of Directive 2004/109/EC) (DTR5.1)

Indirect

(Art 10 of Directive 2004/109/EC) (DTR5.2.1)

Direct

(Art 9 of Directive 2004/109/EC) (DTR5.1)

Indirect

(Art 10 of Directive 2004/109/EC) (DTR5.2.1)

GB00BYYDKX57

81,515,151

8.00%

SUBTOTAL 8. A

81,515,151

8.00%

B 1: Financial Instruments according to Art. 13(1)(a) of Directive 2004/109/EC (DTR5.3.1.1 (a))

Type of financial instrument

Expiration
date x

Exercise/
Conversion Period xi

Number of voting rights that may be acquired if the instrument is

exercised/converted.

% of voting rights

SUBTOTAL 8. B 1

B 2: Financial Instruments with similar economic effect according to Art. 13(1)(b) of Directive 2004/109/EC (DTR5.3.1.1 (b))

Type of financial instrument

Expiration
date x

Exercise/
Conversion Period xi

Physical or cash

settlement xii

Number of voting rights

% of voting rights

SUBTOTAL 8.B.2

9. Information in relation to the person subject to the notification obligation (please mark the

applicable box with an “X”)

Person subject to the notification obligation is not controlled by any natural person or legal entity and does not control any other undertaking(s) holding directly or indirectly an interest in the (underlying) issuerxiii

Full chain of controlled undertakings through which the voting rights and/or the
financial instruments are effectively held starting with the ultimate controlling natural person or legal entityxiv (please add additional rows as necessary)

Name xv

% of voting rights if it equals or is higher than the notifiable threshold

% of voting rights through financial instruments if it equals or is higher than the notifiable threshold

Total of both if it equals or is higher than the notifiable threshold

Colin Braidwood

8.00%

N/A

8.00%

10. In case of proxy voting, please identify:

Name of the proxy holder

The number and % of voting rights held

The date until which the voting rights will be held

11. Additional information xvi

Place of completion

United Kingdom

Date of completion

11 January 2022

 

Annex: Notification of major holdings (to be filed with the FCA only)

A: Identity of the person subject to the notification obligation

Full name (including legal form for legal entities)

Contact address (registered office for legal entities)

E-Mail

Phone number / Fax number

Other useful information

(at least legal representative for legal persons)

B: Identity of the notifier, if applicable

Full name

Contact address

E-Mail

Phone number / Fax number

Other useful information (e.g. functional relationship with the person or legal entity subject to the notification obligation)

C: Additional information

Please send the completed form together with this annex to the FCA at the following email

address: Majorshareholdings@fca.org.uk. Please send in Microsoft Word format if possible.

#BRES Blencowe Resources – Appointment of Battery Limits

Blencowe Resources Plc (” Blencowe” or the “Company”) (LSE: BRES) is pleased to announce the appointment of highly regarded Australian Engineering firm Battery Limits to assist the Company in the completion of the Orom-Cross Graphite Project Pre-Feasibility Study.

Highlights

· Battery Limits is a highly experienced graphite project development engineering firm.

· Battery Limits has completed Feasibility Studies for several tier one graphite projects internationally.

· Extensive graphite project experience in East Africa.

Battery Limits is one of the most experienced graphite project development engineers internationally, with extensive experience in East African graphite projects. Battery Limits has been selected to assist the Company on the basis of this relevant project experience which includes:

· Armadale Capital – Lindau Mahenge Tanzania Graphite feasibility study

· MRC – Munglinup Graphite Australia DFS

· International Graphite – downstream processing DFS

· Graphex Chilalo Graphite – PFS update, PFS and scoping studies and DFS metallurgy and process engineering

· Volt Resources – Bunyu Graphite Tanzania FS, PFS, scoping studies

· Armadale Capital – Lindau Mahenge Tanzania Graphite scoping study

· BlackEarth Minerals – Maniry Graphite Madagascar scoping study

· Black Rock Mining – Mahenge Graphite Tanzania PFS

· Magnis Resources – Nachu Graphite Tanzania PFS

· Triton Mineral – Ancuabe Graphite Mozambique scoping study  

 

Blencowe considers this previous project experience, and in particular the East African graphite knowledge, highly beneficial to Battery Limits assisting in the development of Orom-Cross project.

Battery Limits will lead the Pre-Feasibility Study and will ultimately sign off on the Study, thus providing key credibility to all parties concerned. Study aspects of process engineering and process plant design, capital and operating cost estimates, management of ongoing metallurgical testwork, infrastructure and project implementation will all be undertaken by Battery Limits.

Specialised sub-consultants in Uganda and South Africa will be assisting with tailings storage design, geotechnical and hydrological studies under supervision of Battery Limits.

Executive Chairman Cameron Pearce commented:

“We are both pleased and privileged to have a technical partner with the capabilities and experience of Battery Limits helping us to deliver the PFS, due for completion around mid-2022.  Our Orom-Cross graphite project continues to move towards first production in the medium term and their involvement will help provide a stronger operational and commercial model.”

 

 

For further information please contact:

 

 Blencowe Resources Plc

Sam Quinn

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

Investor Relations

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

Power Metal Resources #POW – Quarterly Business Operational Update

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolioannounces the December 2021 quarterly business operational update for shareholders.

QUARTER HIGHLIGHTS:

Exploration

–    Completion of a 1,092 metre reverse circulation drill programme at the Tati Project, Botswana, designed to follow up on Phase I and II results which highlighted kilometre-scale gold, arsenic and nickel geochemical anomalies coincident with various geological structures highlighted by ground geophysical surveys.

–    Bonanza grade silver achieved in 10 out of 19 drillholes completed during the Phase I Silver Peak Project, Canada, drill programme, follow up overlimit assays confirmed high-grade copper, antimony and lead results increasing the average silver equivalent grade by 18.8%. 

–   Rock sampling and prospecting programmes conducted at the company’s Tait Hill, Thibaut Lake and Clearwater uranium properties surrounding the Athabasca Basin, Saskatchewan, Canada, returned high-grade assay results up to 38,600ppm (3.86%) uranium.

–    Securing the option agreement for Kavango Resources plc (“Kavango”) to acquire current project partner Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key”), through which exploration for nickel, copper and platinum group elements (“PGE”) at the Molopo Farms Complex Project would see a significant step forward. Having Kavango as the operational partner should streamline the ongoing project progression which is key following the discovery of nickel sulphides during the inaugural 2021 drill programme.

Spin-Out Vehicles

–   New Ballarat Gold Corporation (“NBGC”): grant of licence applications in Victoria, Australia, further increase the licence footprint to over 1,500km2; NBGC’s inaugural diamond drilling programme has commenced targeting gold mineralisation across a number of exploration targets.

–    Golden Metal Resources Limited (“Golden Metal”): Acquisition of Pilot Mountain Project which hosts a substantial JORC compliant Mineral Resource (tungsten with significant silver, copper & zinc credits) in Nevada, USA, into Golden Metal which is seeking a listing in London.  Golden Metal is now moving through the listing process with a full management board, suite of listing advisers and has recently completed a £750,000 pre-IPO financing. 

–    First Development Resources Limited (“FDR Australia”): Further commercial and technical developments within Power Metal’s FDR Australia subsidiary company with preliminary exploration work delineating a number of exciting magnetic bullseye gold/copper targets at the Wallal Project located within the prolific Paterson Province.  Further acquisition into FDR Australia of the Selta Project targeting uranium and rare-earth elements in the Northern Territory, Australia. 

Corporate PLC

–     Financing conducted in November raising £1,050,000 in a placing conducted at the then mid-market price of 1.75p. 

–     Operational working capital comprising cash and listed investments at 31/12/2021 amounted to £2.91M and unaudited total assets at 30/11/2021 of £10.1M (before valuation uplift in spin-out vehicles to pre-IPO valuation).

–   New team members recruited in the quarter include a Chief Executive Officer for First Development Resources Limited (planned UK listing company) and Power Metal commercial management, accounting and business administration staff.  Additional recruitment underway to support the growth of the Company and its various spinouts.

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

“We have chosen a non-conformist path for Power Metal in order to build a company, and investment proposition, quite unlike any other within the London junior resource space.

We have opted for scale and diversity, assembling a large portfolio, widely spread across multiple jurisdictions and commodities, with a main focus on district scale opportunities.

Our mission, after the first phase of portfolio building, was to create value through proactive exploration and corporate activity.  We are doing just that as you will see from the project level detail provided for the most recent quarter below.

We currently sit at an important point in the Power Metal life-cycle, coincidentally, at a time when the world is demanding unprecedented quantities of metals for investment security, new infrastructure builds and to power the ongoing green technological revolution.

Despite the world’s aspirations, the practical reality is that in recent years we have seen metal supply attrition with a lack of large-scale metal discoveries combined with subdued investment in the exploration and project development space. 

With such skewed supply/demand fundamentals, sectors can come alive, and we believe 2022 will be an exciting year for the junior mining resource space. 

The final quarter of 2021 is captured below with a brief assessment by the Company of each project and company within our portfolio.  The work completed during the final quarter of 2021 has set up Power Metal well for the coming year.” 

Note: in addition to the material presented below, investors are encouraged to review Power Metal’s corporate presentation which is available on the Company’s website through the following link:

https://www.powermetalresources.com/presentation/

PROJECT OPERATIONS UPDATE

The tables below provide the latest status of each project within the Company’s portfolio and include:

–     Exploration project updates from African, North American and Australian interests;

–   Corporate development updates for project packages advancing towards spin-out into their own listed vehicles;

–     Further updates in respect of the Company’s new project pipeline including Power Capital Investments Ltd, the Company’s wholly-owned project incubator;

–     Additional management, compliance and financial information for shareholders.

African Exploration Projects

Project

Latest Position

Molopo Farms Complex Project

Botswana

(Nickel – Copper – Platinum Group Element)

POW: Effective Economic Interest circa 53% (which will reduce to 40% if Kavango Resources plc exercise their option)

The Molopo Farms Complex Project (“MFC Project”) is owned by Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key”) with a 60% interest and Power Metal with a 40% interest.  Power Metal earned-in to its 40% interest by spending US$500,000 on exploration work, including the maiden drill programme completed earlier this year.

The maiden drill programme provided proof of concept of the geological model and also identified significant nickel sulphides in the drill core with assays up to 1.7% nickel and 0.55g/t platinum 1.  This was a very positive outcome for the first drill programme on this district scale exploration project.

In order to simplify the project ownership structure and streamline ground operations in Botswana, an option agreement was signed with Kavango Resources plc to acquire Kalahari Key and its 60% interest in the MFC Project.

In lieu of an option fee and as part of its due diligence, Kavango is undertaking an agreed exploration work programme on the MFC project, the results of which will be made available to Power Metal in due course.

If Kavango exercises its option Power Metal will sell its circa 21% interest in Kalahari Key in exchange for Kavango shares and warrants.  Power Metal will retain and intends to maintain its 40% interest in the MFC project for the foreseeable future.

Further details in respect of the Kavango option are in the Company’s announcement on 26/11/2021 as linked below:

https://www.londonstockexchange.com/news-article/POW/kavango-option-kalahari-key-botswana/15226717

Company View:

Proof of the geological model and the identification of nickel sulphides in the inaugural three drill hole programme was an extremely positive initial outcome for the MFC Project. 

It became evident however, that progress was slower than ideal particularly given the positive results of maiden drilling programme. As a result, action was needed to simplify the project ownership structure in order to accelerate work progression and streamline ongoing operations.

The Kavango option agreement was an important step in this regard.  We look forward to the results of the option work programme which should provide valuable additional data to help plan the next phase of drilling to follow up on the encouraging results achieved thus far.

South Ghanzi Project

Botswana

(Copper – Silver)

POW: 50%

 

The South Ghanzi Project is held within Kanye Resources Pty Limited, a joint venture vehicle 50% held by Power Metal and 50% by partners Kavango Resources plc (LON:KAV) who are the operators of the project.

 

Drill target refinement continues at the South Ghanzi Project, together with initial exploration at the South Ghanzi Extension licences and the Mamuno licences acquired more recently in August 2021 2.  Together, the ground footprint in the Kalahari Copper Belt (“KCB Project”) totals 4,257km2.

 

Approval of the Environmental Management Plan (“EMP”) for South Ghanzi was secured in October 2021 clearing the last key administrative hurdle and enabling drilling to be undertaken subject to the ongoing target refinement.

 

The joint venture partners continue to consider the planned IPO of Kanye Resources (through a UK listing company, Kanye Resources plc) and an update in this regard will be provided as soon as practicable.

 

Company View:

 

Approval of the EMP was a major step forward for the KCB Project. The KCB holds district scale potential and Power Metal is working with Kavango to ensure the initial drill holes are optimally cited to gather the best geological data and maximise the chance of discovery.

 

The joint venture partners anticipate a material budget will be applied to drilling at the KCB Project and therefore appropriate investment is being made in preparatory measures to optimise the vectoring of drill targets.

 

Ditau Camp Project

Botswana

(Rare Earths – Base Metals)

POW: 50%

Exploration work targeting Rare Earth Elements (“REE”) and base metals has identified a 2.5km by 2.8km target area at prospect I10 where an Audio-frequency Magnetotellurics (“AMT”) geophysical resistivity anomaly, coincides with a gravity high anomaly. The latest Ditau exploration findings were announced to the market in October 2021 and may be viewed in the link below:

Company View:

The Ditau Camp Project, soon to be the target of exploration drilling, has delivered some extremely positive findings to date, particularly with the large anomaly now identified at prospect I10. 

The expansion of target commodities from REEs to now include base metals demonstrates the prospectivity Ditau holds and we are very eager for drilling to commence as soon as possible.

Tati Project

Botswana

(Gold – Nickel)

POW: 100%

 

The Company recently completed a maiden drill programme following up positive initial exploration results including geochemical soil sampling, mapping & prospecting, and ground-based geophysics including high-resolution magnetic and radiometric surveys.

 

The initial exploration highlighted five target areas across the two licences, which are defined by kilometre-scale geochemical anomalies that are coincident with various geological structures that were highlighted by the ground geophysical surveys.

 

The Company announced a maiden drill programme at the Tati Project in October 2021 and details may be viewed through the link below:

 

https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-drill-programme-commences/15169113

 

The maiden drill programme comprised 23 reverse circulation (“RC”) drillholes for a total 1,092m drilled. The RC holes targeted multiple nickel and gold anomalies identified by the Company’s Phase I and Phase II geochemical and geophysical programmes completed earlier in the summer. RC samples were shipped to Johannesburg for sample preparation at Intertek Genalysis (“Intertek”) preparatory facility, and have since been shipped and received in Perth, Australia, at Intertek’s laboratory where they are undergoing analysis. Results from all RC samples are still pending and are expected to be received in early 2022.

 

Power Metal has incorporated a new Botswana company, Tati Greenstone Resources Pty Ltd (“TGR”), to hold the Tati Project.  Documentation for the transfer of the two exploration licences comprising the Tati Project into TGR has been submitted to the Ministry of Mineral Resources, Green Technology and Energy Security (“MMGE”).

 

 

Company View:

 

From the original announcement confirming an option for the Tati Project in May 20213, Power Metal have moved through a number of initial exploration steps very rapidly. 

 

We await the results from the recent RC drilling campaign which will provide key information with regard to sub surface geology to complement the information collected at surface from geochemical and geophysical exploration work.

 

The identification of multiple kilometre-scale gold, arsenic and nickel anomalies so early in the work programme, provides multiple opportunities for a gold or nickel discovery.  We are therefore pushing as hard as possible to accelerate project exploration.

 

Kisinka Project

The Democratic Republic of the Congo

(Copper – Cobalt)

POW: 70%

Next stage exploration is drill testing of the 6.8km copper-cobalt geochemical anomaly identified by previous exploration programmes at the Kisinka Project which holds a 25 year production licence.

We are continuing to push for an acceptable drill programme including target finalisation and sourcing of appropriate contractors.

Company View:

The 6.8km copper-cobalt anomaly is an interesting exploration target which we would like to see drill tested.

The Kisinka Project has discovery potential, but the pace of commercial and exploration progress in-country has been slower than ideal and this is something we are working to resolve. 

Haneti Project

Tanzania

(Polymetallic)

POW: 35%

 

The Haneti Project is held 35% Power Metal and 65% Katoro Gold plc (LON:KAT).

 

The next stage of exploration at the Haneti Project is deep diamond core (“DC”) drill testing of targets prospective for nickel sulphide / PGE mineralisation.

 

The DC drill programme is scheduled to commence in January 2022 and further information will follow in due course.

 

Company View:

 

Based on the results achieved to date at the Haneti Project, we are of the belief that the next stage of exploration needs to be deep diamond drilling, and we are very pleased that this work is about to commence. 

 

If the DC drilling is successful in the delineation of the mineralising system we are ultimately seeking the discovery of a nickel sulphide and PGE deposit and the impact on both Katoro and Power Metal could be significant.

 

Power Metal are therefore eager to see diamond drilling commence in January 2022 and the findings therefrom.

 

North American Exploration Projects

Project

Latest Position

Silver Peak Project

British Columbia, Canada

(Silver)

POW: 30%

A Phase I diamond drill programme was launched at the Silver Peak Project in August 2021.

In total 19 short cored drill holes were completed and assay results from this programme were completed with 10 out of the 19 holes drilled returning bonanza grade silver (>1,000g/t Ag) with significant copper, zinc, lead and antimony credits, and 14 of the 19 holes returning elevated silver mineralisation. This included a highlight Intercept of 0.76m of 8,692.2g/t Ag (279.5 oz/t) from hole DDH21-2.

 

The initial drill assay results from the Phase I programme were announced by the Company in November 2021 and may be viewed through the following link:

 

https://www.londonstockexchange.com/news-article/POW/silver-peak-canada-drill-programme-assay-results/15210267

 

In addition, overlimit assays were conducted highlighting high grade copper, antimony and lead results.  The overlimit assays received led to an average increase in grade of 18.8% from silver to silver equivalent for the calculated intervals.  The overlimit assay results were announced by the Company in December 2021 and may be viewed through the following link:

 

https://www.londonstockexchange.com/news-article/POW/silver-peak-canada-overlimit-assay-results/15233399

Following the completion of the 2021 Phase I drilling programme, and the receipt and release of all associated assay results, the project partners commissioned a NI43-101 compliant technical report 4 to be completed on the Silver Peak Project.

The report was commissioned to prepare the Silver Peak Project to potentially act as a qualified project for a possible public listing.

Company View:

The results from all stages of exploration at Silver Peak have been increasingly exciting for Power Metal and our partners.  Repeated bonanza grade silver results are particularly attractive and, in our opinion, have led to a significant increase in the overall project valuation.

There are a number of potential options for project commercialisation and we continue to work with our partners to review possible next steps.

Alamo Gold Project

Arizona, United States of America

(Gold)

POW: Earn-in to 75%

 

Permitting delays were encountered slowing progress at the Alamo Gold Project.  Following granting of permits the work programme recommenced and is outlined in the Company’s November announcement found in the link below:

 

https://www.londonstockexchange.com/news-article/POW/alamo-gold-project-usa-exploration-update/15221692

 

The test pitting programme was completed successfully in early December 2021.

 

As part of the programme, multiple test pits were excavated to bedrock at Big Boulder Wash (3 pits) and Breccia Hill (3 pits).

 

A total of 13 rock samples were taken from various trenches at Breccia Hill, as well as three additional rock samples from various localities located near to the trenches. Rocks sampled were described predominantly as volcanic and/or gneissic in nature, with varying degrees of brecciation and hematisation noted in several samples. Two of the prospecting samples were described as strongly oxidised quartz vein samples with carbonate-sulphide veining throughout.

 

All samples were sent for assay at an accredited ALS laboratory where they will undergo multi-element analysis including gold, utilising a large 50-gram aliquot size intended to reduce any nugget effect present in any of the samples. Significant results will be announced to shareholders as and when received.

 

Due to the permitting delays experienced on our Alamo Gold Project, Power Metal and the vendor, Frisco Gold Corporation, have agreed to an amendment to the original Mineral Lease and Option Agreement signed between the two companies.

 

Under the original terms, a US$50,000 pre-production royalty payment (“PPR Payment”) was due by 31 December 2021. Under the amended agreement, the PPR Payment has been deferred until 14 days after the receipt of all analytical results from the 2021 test pitting programme, or 31 March 2022, whichever is earlier.

 

The amendment will allow Power Metal to review all 2021 exploration data before making a decision on next steps with the project.

 

Company View:

 

Progress has been slow with the Alamo Gold Project largely due to the permitting delays locally onset by the COVID-19 pandemic.  With permits now issued, and work completed and underway, we await the findings with interest to determine the next steps for the project.

 

Athabasca Uranium

Saskatchewan, Canada

(Uranium)

POW 100%

 

The Company began staking in the Athabasca Basin in Saskatchewan, Canada in September 2021 and in November 2021 announced a further batch of staking increasing the footprint of staked ground to 411.96km2 over 7 property packages as outlined in the following announcement:

 

https://www.londonstockexchange.com/news-article/POW/uranium-portfolio-expansion-athabasca-basin/15206182

 

Work was undertaken to assemble detailed project information and to determine next steps for the newly acquired properties.

 

Step one was the launch of Phase I surface rock sampling programmes at three properties, Tait Hill, Thibault Lake and Clearwater.

 

The programme was successfully completed in November 2021 and 20 rock samples were collected for assay testing, with the results sent for rush assay testing. 

 

Assay results were received in December 2021 demonstrating high grade uranium with the highest grade of 38,600ppm or 3.86% uranium oxide (“U308“).

 

The full exploration update released by the Company may be viewed in the link below:

 

https://www.londonstockexchange.com/news-article/POW/uranium-exploration-update-athabasca-basin/15256838

 

Company View:

 

The Company’s move into the uranium exploration space has generated a lot of interest amongst shareholders.  This is justifiable, as the staking undertaken in September through to November has created 7 exciting project packages surrounding the Athabasca basin.

 

Those packages have attracted interest from multiple parties and we continue to review the forward pathway for our uranium business in which Power Metal has significant optionality.

 

We continue to look for additional uranium opportunities in the Athabasca region and more generally in North America and Africa.

 

Authier North

Quebec, Canada

(Lithium)

POW earn-in to 100%

 

Inaugural exploration was launched at Authier North in September 2021 with a Phase I programme comprising prospecting, mapping and sampling.

 

The programme was designed to test for the extensions of a lithium-bearing pegmatite dyke down dip to the north, and along strike to the east from the adjacent Authier Lithium Property.

 

The Authier Lithium Property is owned by Sayona Mining Limited and is scheduled to go into production in 2023.

 

A total of 12 rock samples and 193 B-horizon soil samples were collected from three grid areas across the Authier North Project (West, Northeast, and Southeast).

 

Soil and rock samples were collected and sent for assay at Activation Laboratories Ltd., Ancaster, Ontario. Soil samples were assayed utilising a 35-element analytical package including lithium, and select samples were further tested for rare-earth element enrichment utilising a REE analytical package.

 

The mean result for lithium-in-soil was 9.8ppm Li, with a standard deviation of 4.0ppm Li. The three highest results returned were 27ppm Li, 29ppm Li, and 36ppm Li representing a ~4, ~4.5 and ~6 standard deviation increase over the mean.

 

The highest results were all located in the eastern part of the Authier North Project within the Northeast and Southeastern grids.

 

The Company is considering additional infill soil sampling between the two grids, as well as possible ground-based geophysical surveys over the entire project.

 

Company View:

 

The Authier North project is an exciting lithium and REE focused opportunity for Power Metal. 

 

We are pleased to have successfully completed Phase I exploration and are looking forward to receipt of full assay data so we can determine next steps for the project.

 

 

Australian Exploration Projects

Project

Latest Position

Gawler Project

South Australia

(Gold, Copper)

POW: 100%

 

In October 2021 the Company announced it had established a new wholly owned Australian subsidiary Power Metal Resources Australia Pty Ltd (“POW Australia”). Following that, POW Australia submitted licence applications covering an area of 1,994km2 in the Gawler Craton of South Australia.

 

The applications are targeting Olympic Dam style mineralisation and POW Australia is currently undertaking a review of publicly available historic data in order to further refine geological understanding and prepare detailed exploration plans in readiness for ground operations when licences are granted.

The Company’s announcement in respect of the above may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/new-australia-copper-gold-opportunity/15189456

Company View:

The Gawler Project, although early stage and still in the application phase, demonstrates the Company’s ability, with the skills and knowledge of its technical team members, to identify new opportunities and move quickly to secure new ground and begin to build a new project opportunity from the ground-up.

 

Disposal/Spin-Out Vehicle Packages*

* Please note other project packages within the Power Metal portfolio are also in earlier stages of spin-out preparations in addition to those listed below.

Project

Latest Position

New Ballarat Gold Corporation

Victoria, Australia

(Gold)

POW: 49.9%

Power Metal has a 49.9% interest in New Ballarat Gold Corporation plc (“NBGC”) which is held in a joint venture with 50.1% owner Red Rock Resources plc (LON:RRR).

Through its Australian operating subsidiary, Red Rock Australasia Pty Ltd, NBGC has a substantial claim holding within the Victoria Goldfields, Australia.

The latest update in respect of NBGC was released by the Company in December 2021 and may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/new-ballarat-licence-grant-drilling-commences/15251136

Note: subsequent to the above update a further single licence has been granted, EL007505 covering 9km2, further details about which will be provided in future NBGC updates.

The update confirms the commencement of an inaugural DC drilling programme at the O’Loughlin’s gold prospect located south of Buninyong.  Further details of the planned drill programme were provided in the Company’s update also released in December 2021 which may be viewed through the following link:

 

https://www.londonstockexchange.com/news-article/POW/business-update-red-rock-resources-australasia/15240196

 

Drilling is progressing well with a market update expected in January 2022.

NBGC is seeking a listing on the London capital markets and is working with advisors in this regard.

Company view:

A significant claim footprint secured by joint venture partners has created a valuable land holding within the Victoria Goldfields, one of the most sought after gold exploration regions in the world.

To date over 10 exploration licences (of the 16 applications) have now been granted, taking the granted footprint to over 1,500km2, representing a major achievement which has materially increased the value of the joint venture.

Whilst the preparations for listing the vehicle in London are in process, the proactive approach to exploration continues, with multiple gold exploration targets now subject to diamond drilling that is progressing well. 

Golden Metal Resources

Nevada, USA

Gold – Base Metals

POW 83.13% (following issue of shares relating to the £750,000 pre-IPO financing)

During 2021 Power Metal assembled a strategic package of exploration and development interests in Nevada, USA, under the corporate vehicle Golden Metal Resources Ltd (“Golden Metal”). Golden Metal’s project portfolio includes:

–       Golconda Summit – An earn-in over an exploration property targeting a major gold discovery, where Golden Metal has a right to earn-in to a 100% interest.

 

–       Garfield/Stonewall – Two 100% owned exploration properties targeting gold-silver-copper mineralisation. 

 

–       Pilot Mountain – 100% interest in an advanced exploration and development property with a substantial JORC compliant Mineral Resource for tungsten (with significant copper, silver and zinc  credits).

The latest Golden Metal project exploration update was released in November 2021 and may be viewed through the link below:

https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-exploration-update/15229671

Golden Metal is seeking a listing on the London capital markets (targeting April 2022) and has recruited its listing board, appointed all advisors and recently raised £750,000 in pre-IPO funding further details of which may be seen in the Company’s December announcement linked below:

https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-pre-ipo-financing/15244131

The Golden Metal website is now live and can be viewed through the following link:

https://www.goldenmetalresources.com

The Golden Metal corporate presentation may be accessed directly through the following link:

 

https://www.goldenmetalresources.com/golden-metal-resources-presentation/

Company View:

The pre-IPO financing for Golden Metal was conducted at a pre-money valuation of £3.25million.  The intention is to secure an IPO listing at a premium to the pre-IPO valuation and launch Golden Metal with immediate high-impact exploration programmes planned across the portfolio.

Power Metal considers the Golden Metal package to be a highly attractive listing vehicle, offering UK-based investors access to North American exploration focused on the world’s top mining jurisdiction 5of Nevada, USA.

The Golden Metal package includes the Pilot Mountain Project, which hosts a significant JORC compliant Mineral Resource which we believe will underpin a strong valuation for Golden Metal going forward.

Golden Metal is a unique opportunity and the Company is looking forward to the planned listing and proactive exploration updates thereafter.

First Development Resources

Western Australia

(Gold – Copper – Rare Earth Elements – Uranium)

POW: 96.15% (diluting down to 83.33% should all 3 Selta Project licences be granted).

 

Power Metal acquired a 100% interest in First Development Resources Pty Ltd (“FDR Australia”) via its wholly owned subsidiary First Development Resources Limited (“FDR UK”).  The announcement in respect of this acquisition was released in October 2021 and may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/power-metal-acquires-100-of-fdr-australia/15193248 

FDR Australia has a 100% interest in three exploration projects in the Paterson Province of Western Australia (comprising five granted exploration licences in total and covering a ground footprint of 751km2).

The three projects include the Wallal Project, Braeside West Project and Ripon Hills Project.  At the flagship Wallal Project, ongoing exploration work includes 2D seismic geophysics reprocessing and a passive seismic survey which is intended to help refine drill targeting within the Wallal Main licence area.

Drill targets comprise magnetic bullseye targets of similar geological nature to that drill tested by Greatland Gold plc leading to the discovery of the Havieron deposit also within the Paterson Province.

In November 2021 Power Metal announced that FDR UK had acquired URE Metals Pty Ltd (“URE”) an Australian private company and holder of the Selta Project, comprising 3 exploration licences in the Northern Territory, Australia.  The announcement may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/uranium-rare-earths-acquisition-australia/15219001

The acquisition of URE was almost entirely payable in FDR UK shares diluting Power Metal’s holding in FDR UK to 96.15% initially, and ultimately to 83.33% should all 3 Selta Project licences be granted.

The pre-transaction value of Power Metal’s interest in FDR UK was £2,500,000 and FDR UK is seeking a listing on the London capital markets.  Preparatory steps are being taken for the listing, which is targeting Q2 2022, including the recruitment of a suitable board, senior management team and suite of advisors to assist with the listing process. 

Specifically in respect of the board Tristan Pottas has been appointed as Chief Executive Officer of FDR UK and Craig Moulton as Non-executive Director.

Company view:

It is apparent from shareholder communications with Power Metal that FDR UK will be of great interest going forward.  The combination of the Wallal Project’s exciting magnetic bullseye targets together with the uranium/REEs exploration opportunity at the Selta Project in the Northern Territory, is drawing significant shareholder attention.

The Power Metal team are working hard to implement the preparatory measures needed to secure the listing of FDR UK and are looking forward to providing further updates in due course.

First Class Metals

Schreiber-Hemlo, Ontario, Canada

(Gold – Base Metals)

POW c.36%

 

Power Metal announced the 100% disposal of its Schreiber-Hemlo interests to First Class Metals (“First Class”) on 7 September 2021 for a consideration of £1million.  With the shares received on the disposal, and following a subscription by Power Metal of £28,764 at £3/share in the pre-IPO raise, Power Metal currently has an interest of 36.3% in First Class (after reflecting the circa £400,000 pre-IPO raise undertaken by First Class).

First Class is seeking a listing on the London capital markets and is working on this currently targeting a listing for Q1 2022.

Power Metal is working with First Class to support their listing plans and looks forward to reporting further progress in this regard. On listing Power Metal will be a significant shareholder in First Class.

Company View:

The First Class Metals business offers investors through London, access to a Ontario, Canada, focused exploration vehicle with extensive exposure to highly prospective and strategically positioned projects. 

With the integration of the Power Metal Schreiber-Hemlo projects, the First Class Metals portfolio is potentially market leading and we believe will draw considerable interest on listing. 

The team at First Class Metals are doing a very effective job and we continue to work with them where required.

 

New Opportunities

Project

Latest Position

Power Metal Resources plc

Power Metal as a business has an acquisitive mindset.  However, the near-term focus will remain on the exploration of existing interests and the crystallisation of value through the potential listing of spin-out vehicles as previously announced.

New acquisitions are likely to be restricted to additional projects to add into the FDR UK business in preparation for its planned IPO, new uranium opportunities and potentially additional gold/copper opportunities in North America or Australia.

Should Power Metal encounter exceptional new opportunities outside the above areas it will consider further acquisitions but only on the right commercial terms.  It should be noted that many of the Company’s previous acquisitions have used Power Metal equity as a large portion of consideration.  With the share price trading at a circa 55% discount to the high in January 2021, the Company is reluctant to utilise equity for acquisitions at this time and it makes commercial sense to limit any equity based acquisition approach at current share price levels.

Power Capital Investments Limited

Global Resource Project Incubator

(Multi-Commodity)

POW: 100%

 

Power Capital Investments  (“Power Capital”) continues to work on a number of initiatives targeting individual or smaller corporate owned opportunities. 

Limited information will be provided in respect of the above Power Capital projects to preserve commercial sensitivity, notably where work is needed to secure exploration licences or to protect commercial partners.

At present none of the Power Capital projects are considered material in the context of the Power Metal business overall.  Should they become so, further disclosures may be necessary.

NOTE: A maximum investment level of £100,000 per opportunity has been established and a minimum 50% Power Capital holding interest in any opportunity following Power Capital’s investment.

 

Management and Financial

Project

Latest Position

Board

 

The Board currently comprises:

Scott Richardson Brown – Interim Non-executive Chairman

Paul Johnson – Chief Executive Officer

Ed Shaw – Non-executive Director

Power Metal is seeking to appoint new board members and expects to make additional announcements in this regard in the current quarter.

Management and Team

 

The Company operates a hub and spoke operational management style coordinating and controlling global business operations from its UK operational head office based in Farnborough, UK. 

In 2021 with the growth of our business portfolio, and the success of exploration and commercial ventures, we have built the Head Office team with additional team members covering:

–       exploration management,

–       commercial management,

–       financial and administrative support, and:

–       marketing & communications

We are seeking to optimise resources, and our Head Office team will be deployed to support Power Metal central activities and also to support spin-out vehicles, managerially and administratively, sharing the Power Metal team operational costs with spin-out vehicles.

Power Metal is actively seeking to bring new team members in to support the growth in business activities and has launched a “Join-Us” page on the Company’s website with further details.  This may be viewed through the following link:

https://www.powermetalresources.com/join-us/

Financial Position

 

Power Metal Financial Assets

The core of the Company’s assets, as with many other exploration companies, is a portfolio of capitalised project acquisition and exploration costs for ongoing projects or loans to subsidiary companies in respect of project expenditure (“Project Assets”).

As at 30/11/2021 the Project Asset value was £3,354,847 in the Company’s internal unaudited management accounts.

The Company’s assets also include the planned spin out/disposal project vehicles (“Pre-IPO Assets”) which includes:

–       First Class Metals (Hemlo-Schreiber projects sold to FCM Sept 21)

–       Golden Metal Resources (Nevada exploration/development)

–       First Development Resources (Australia exploration)

–       New Ballarat Gold Corporation (Australia exploration). 

Each spin-out/disposal, on successful listing is expected to add material value to the Company’s balance sheet.

As at 30/11/2021 the Pre-IPO Asset value was £3,709,777 in the Company’s internal unaudited management accounts. This value does not include the valuation uplift from acquisition cost to pre-IPO value.

Power Metal also holds listed investments including shares and warrants of currently listed junior resource companies (“Listed Assets”). The Listed Assets are readily tradable and provide the Company with a source of cash if needed.

As at 30/11/2021 the Listed Asset value was £1,079,128 in the Company’s internal unaudited management accounts.

In addition to the above the Company maintains material cash balances which includes GBP, USD, CAD, AUD and Pula currencies (“Cash Assets”).

As at 30/11/2021 the Cash Asset value was £1,962,561 in the Company’s internal unaudited management accounts (including the November 2021 financing, which was received in full in December 2021).

Overall, as at 30/11/2021 including all categories listed above the total unaudited assets of the Company amounted to £10,106,313.   Note: this asset figure does not include the uplift in value of Golden Metal Resources or First Development Resources to reflect the current pre-IPO valuations of both vehicles, with both vehicles included at acquisition cost only. 

Working Capital

The Company considers Working Capital to be the money available to deploy on payment of corporate operational, notably exploration expenditure.  It comprises cash held and listed investments only and at 30/11/2021 as outlined above amounted to £3,041,689.

As Working Capital management is vital, we monitor this on a weekly basis and as at 31/12/2021 this amounted to £2,907,686.  This is a robust amount of cash and listed investments as the Company enters 2022.

Future Financing Sources

The Company has multiple sources of additional financing. 

As demonstrated in November 2021, traditional equity financing can be undertaken to raise additional sums where considered necessary.

Furthermore, the Company has issued warrant instruments during financings and project acquisition transactions, some of which are currently in-the-money, but most are at higher prices to the current mid market share price. 

In addition, the Company has issued options to management, staff, advisors and consultants, as part of team incentivisation.

Table 1 below provides a full breakdown of all warrants and options outstanding as at 31/12/2021.

The warrants and options above, if exercised in full, will bring £8,406,213 additional cash into the Company, largely at exercise prices considerably higher than the current market share price (or £9,406,213 if Thor Mining plc exercise their 4p warrants within 12 months and exercise replacement warrants at an exercise price of 8p).

In addition to the above, the Company will benefit from the planned listing of four pre-IPO vehicles as outlined above which will, if successful and in line with expected valuations on listing, add considerably to overall Power Metal asset value. Subject to any applied lock-in on listing, the shares held on IPO will form part of listed asset investments and provide an additional pool of working capital to the Company.

It is anticipated that further value generative events may occur including additional spin-outs into new listed vehicles and outright disposal of certain business interests.  The level of such corporate activity is dependent on demand for new vehicles, predominantly in the London capital markets, and also the level of M&A activity in the junior resource sector.  In the latter regard the Power Metal board, from acquisitive interest already demonstrated across the Company’s portfolio, expect a heightened level of corporate activity in 2022.

Audit and Compliance

 

Power Metal continues to work with One Advisory, its financial and compliance service partner, to liaise with auditors PKF, and the financial results for the year ended 30 September 2021 are expected to be published in February 2022.

Power Metal continues to bolster its Environmental, Social and Governance initiatives and expects to publish further information in this regard in the coming quarter covering the various measures implemented.

In 2020 the Company undertook a Finance, Administration and Compliance Protocols and Procedures Review to further improve its underlying Governance.  This review is being updated currently to ensure all areas are fully updated with business developments.  As part of this the Company has now completed detailed business process mapping across all key corporate activities.  In addition, Power Metal has recruited a new Commercial Manager onto the team to prepare business organisational structure charts, detailed business process flows, a live corporate and licence database and a full business information managed database.

These measures are considered necessary as the Company expands in size, scale and breadth of corporate and exploration activities.

 

Table 1: Power Metal Resources plc – Share Warrants and Options Outstanding at 31/12/2021

Financial Instrument Type

Note

Number

Exercise Price

Expiry Month

POW Receives on Exercise

Dec-19 Financing Warrants  – POW Director Held

11,250,000

0.7p

Mar-22

£78,750

Jul-20 Financing Warrants – POW Director Held

27,500,000

0.75p

Jul-22

£206,250

Jul-20 Financing Warrants – General Holders

70,706,079

0.75p

Jul-22

£530,296

Nov-21 Financing Warrants – General Holders

66,000,000

3.5p

Dec-23

£2,310,000

TOTAL FINANCING WARRANTS

175,456,079

£3,125,296

Alamo Gold Project Acquisition

15,500,000

1p

Jul-23

£155,000

Kavango – Strategic JV Earn-in Super Warrants

5,000,000

5p

Jul-23

£250,000

Silver Peak Acquisition (Signing)

9,000,000

1.75p

Sep-23

£157,500

Silver Peak Acquisition (Earn-in Complete)

2,569,641

2.89p

Mar-24

£74,263

Garfield/Stonewall Acquisition

2,250,000

3.75p

Jun-23

£84,375

First Development Resources Acquisition

13,333,333

4.5p

Oct-24

£600,000

First Development Resources Acquisition

10,000,000

5p

Oct-24

£500,000

Pilot Mountain Acquisition

(i)

12,500,000

4p

Oct-24

£500,000

TOTAL TRANSACTION WARRANTS

70,152,974

£2,321,138

Advisor/Consultant Options

15,000,000

2p

Jul-23

£300,000

POW Team (Non-Board Options)

(iv)

25,000,000

3.25p

Jul-24

£812,500

POW Director Options

1,000,000

5p

Jul-23

£50,000

27,227,858

1p

Feb-22

£272,279

15,000,000

1p

Feb-23

£150,000

20,000,000

2p

Jul-23

£400,000

(ii)(iv)

10,000,000

3.25p

Jun-24

£325,000

(iii)(iv)

20,000,000

3.25p

Aug-24

£650,000

TOTAL BOARD, STAFF, CONSULTANT & ADVISOR OPTIONS

(v)

133,227,858

£2,959,779

TOTAL ALL WARRANTS AND OPTIONS

378,836,911

£8,406,213

Notes:

(i)    If exercised within 12 months replacement warrants issued at an 8p exercise price

(ii)   Subject to Shareholder Approval at General Meeting

(iii)  Subject to completion of six month’s service

(iv)  Exercise subject to POW trading at a volume weighted average price of 5p for ten trading days

(v)   A further 97,500 options remain outstanding from October 2012, at an exercise price of £6.00 each, expiring in October 2022

 

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.

Reference Notes:

1                  Power Metals company announcement , 24 September 2021: ( source: https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/x4919kw )

 2                   Power Metals company announcement , 2 August 2021: ( source:    https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rg745jr )

3                     Power Metals company announcement , 6 May 2021: ( source:    https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rnp73px )

4                     NI43-101: Canadian National Instrument 43-101: Standards of Disclosure for Mineral Projects ( for background reference see:    https://www.osc.ca/en/securities-law/instruments-rules-policies/4/43-101/mining-disclosure-essentials-ni-43-101-reporting-fundamentals-industry-best-practices-and-useful )

5                     The top jurisdiction in the world for investment based on the Investment Attractiveness Index is Nevada based on the Fraser Institute Annual Survey of Mining Companies, 2020 (see:    https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2020 )

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

NOTES TO EDITORS

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries. 

The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.

Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes. 

Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.

Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.

 

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:

 

Project

Location

POW %

Work Completed or Underway

Results Awaited

Alamo Gold Project

USA

Earn-in to 75%

Excavation of multiple test pits and mapping & sampling.

Field and assay results from on-site work programme.

Authier North Lithium

Canada

Earn-in to 100%

Soil & rock sampling completed

Laboratory assay results of samples collected

Ditau Project

Botswana

50%

Preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare-earth elements and base metals

 

Field programme findings and defined drill targets for near term drilling.

Kalahari Copper Belt

Botswana

50%

Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas

Field programme findings and defined drill targets for near term drilling

Molopo Farms

Botswana

53%1

Kavango Option to acquire an interest in local project holding company.  Option fee payable through defined work programme

Results from various work activities underway as part of the Kavango Option

Tati Gold/Nickel

Botswana

100%

Reverse circulation drill programme completed

Laboratory assay results awaited

Victoria Goldfields

Australia

49.9%

Ongoing exploration across 848km2 of granted exploration licences

 

Results from field programme including drill programme underway

Wallal Gold/Copper Project

Australia

83.33%2

Passive seismic and 2D seismic processing work programme completed

Results awaited

1 should Kavango exercise their option to acquire Kalahari Key, Power Metal interest would reduce to 40% of the Molopo Farms Complex project

2 assuming all licences held by URE Metals Pty Limited are granted as outlined in the Company’s announcement of 19.11.21 resulting in the issue of First Development Resources Ltd shares to URE vendors

 

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