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Power Metal Resources #POW – Botswana Molopo Farms Complex Commercial Update – Kalahari Key Restructuring Progressing Well and Intention to Seek Listing

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce a commercial update in respect of Kalahari Key Mineral Exploration Pty Ltd and the Molopo Farms Complex Project.

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

“We are delighted to see the MFC Project structuring discussions progressing so efficiently and we continue to work with our partners to implement this as quickly as possible.

The decision to create a new UK plc to hold the remaining 60% interest in the MFC Project is an important step.  We believe the planned UK listing will enable fuller recognition of the MFC Project’s value, particularly given the notable exploration success already achieved and the level of interest being shown in the Project.  We also welcome Richard’s appointment as Newco CEO and note that as expected he is already pursuing matters with some determination.

For Power Metal we are pleased to support the listing of the new vehicle, which will enable our holding in Kalahari Key to have demonstrable value, further building our working capital with additional listed equity.

In the interim we continue to push on with technical work at the MFC project and further updates are anticipated in the near term.”

Background

As announced on 22 April 2021 Power Metal has earned-in to a 40% direct interest in the MFC Project, which is targeting prospective magmatic intrusion-hosted massive nickel sulphide and platinum-group element (“PGE”) mineralisation in Botswana.  The balancing 60% direct interest is held by Kalahari Key.

It is the intention of Power Metal to retain ownership of its 40% direct MFC Project interest at this time.

Restructuring Process

To reflect the new ownership structure a number of steps are planned as follows:

1.  Kalahari Key will remain a single project holding company and continue to manage the MFC project, and a new local board will be established including at least one director from Power Metal.

2.  The share capital of Kalahari Key will be restructured to reflect a new ownership structure for the MFC Project with 60% of Kalahari Key shares held by existing Kalahari Key shareholders and 40% of shares held by Power Metal.

3.  The above 60% Kalahari Key shareholding will be held through a newly formed UK plc (“Newco”) in which existing Kalahari Key shareholders (including Power Metal) will have the same percentage ownership interest as currently held in Kalahari Key.

Proposed Listing of Newco

The intention is for Newco to list on a recognised stock exchange on the London capital markets during 2021 and for it to become a proactive resource exploration vehicle.  Newco operations will principally include advancement of the MFC Project and the acquisition of additional opportunities, with a focus on Botswana.

Newco Management

A new Chief Executive Officer, Richard Nolan, has been appointed to manage Newco operations and the proposed listing process. Richard has over 20 years’ international experience in banking and management including equity research, mergers & acquisitions and private equity.  He has held board level positions with several natural resource focused companies both private and publicly listed.

Additional Newco board appointments will be announced in due course.

Financing of Newco

Following settlement of any outstanding costs within Kalahari Key, the proceeds from a recent rights issue (raising circa US$259,000 and in which Power Metal took up its rights), when settled by participants, will be applied to initially fund Newco. Thereafter it is expected that Newco will seek additional funding through further private funding rounds or through an IPO on a recognised stock exchange.

Power Metal Interest in the MFC Project

Currently, before the restructuring above, Power Metal holds 18% of Kalahari Key and therefore with its 40% direct project interest has an overall effective economic interest in the MFC Project of 50.8%.

Following the restructuring and upon settlement of the Kalahari Key rights issue in which Power Metal has participated the Company will hold 21.7% of Newco, meaning its overall effective economic interest in the MFC Project will increase to 53.02%.

Latest Exploration Information

Latest exploration results from the MFC Project including assays from diamond drilling displaying significant nickel intersections were published on 8 April 2021 and may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/botswana-molopo-farms-complex-assay-results/14929973

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

Power Metal #POW – Option Agreement for Botswana Gold-Nickel Project

Option Agreement – Botswana Gold-Nickel Properties

Company has Signed an Option Agreement to Acquire a 100% Interest in Two Gold – Nickel Prospecting Licences in the Tati Greenstone Belt, Botswana, with a down payment on drilling.

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce it has secured an option (the “Option”) to acquire two prospecting licences (“PLs”) prospective for gold and nickel and located upon the Tati Greenstone Belt, Botswana.

The Option allows for a 60 business day due diligence period, and should Power Metal exercise the Option, it will undertake the licence acquisitions through its newly formed 100% owned subsidiary Power Metal Resources Botswana (Pty) Limited (“Power Metal Botswana”).

 

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

“We recently formed Power Metal Botswana to provide a holding company for new acquisitions in Botswana and I am pleased to announce this first transaction.  Subject to due diligence, this acquisition would give the Company exposure to a new strategic project in the heart of the Tati Greenstone Belt, an under explored area which we believe holds considerable potential for new gold and nickel discoveries.

This announcement further confirms the Company’s commitment to expanding our operational interests in Botswana, which is a first class destination for responsible exploration companies.  Uniquely, the transaction incorporates an Option fee that is convertible into a down payment against project drilling in Botswana.

I look forward to providing further information as our due diligence work progresses.”

Vendor and Prospecting Licence Information

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

 

The PLs owned by the Vendors and the subject of this transaction are as follows:

PL127/2019

PL127/2019 is located near the southern extent of the north-northwest striking Tati Greenstone Belt, roughly 40km southwest of Francistown, Botswana, and less than 7km from the Mupane underground gold mine.

PL127/2019 covers a total area of 89km2 and is prospective for orogenic gold and intrusive magmatic nickel mineralisation.

Several untested kilometre-scale Arsenic (‘As’)- and Gold (‘Au’)-in-soil anomalies extend onto PL127/2019 from the northeast and southeast.

The licence is also believed to cover the southern extent of prolific gabbroic-troctolitic intrusions which host the Phoenix, Selkirk and Tekwane Ni-Cu-PGE rich deposits located along the periphery of the Tati Greenstone Belt less than 7km from the licence. The magmatic Ni-Cu-PGE potential the licence possesses has been generally overlooked by previous operators.

PL126/2019

PL126/2019 is located near the northern extent of the Tati Greenstone Belt, less than 10km southeast of Francistown and is adjacent to the Golden Eagle deposit (Shashe Mining Licence).

PL126/2019 covers a total area of 35km2 and is prospective for orogenic gold mineralisation. The licence hosts several untested arsenic and gold in-soil anomalies as well as a large historic mine dump which has received little known follow up or modern exploration.

Tati-Greenstone Belt Information

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

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

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

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

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

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

Option Agreement Information

The Option:

  • Power Metal has signed an option agreement to acquire a 100% interest in PL 126/2019 and PL 127/2019, being two granted prospecting licences in Botswana within the Tati Greenstone Belt and held by the Vendors.
  • The Option provides a 60 business-day period, during which Power Metal may undertake due diligence and notify the Vendors of Option exercise to acquire 100% of P L 126/2019 and PL 127/2019 from the owner of the said prospecting licences.
  • The Option fee is to be satisfied through a cash payment of £50,000 to the Vendors.  The full amount of £50,000 paid may be credited and offset from the cost of the drilling u ndertaken by Equity Drilling Limited (100% owner of VC) at the two PLs which are the subject of this Option or at other Power Metal interests in Botswana. The payment will be made using existing Power Metal cash resources.

Upon Option Exercise:

  • VC will subject, to local authority approvals, arrange immediate transfer PL 126/2019 and PL 127/2019 into Power Metal Botswana.
  • The consideration items outlined below, following Option exercise, will not become due and payable until the necessary local authority approvals for the transfer to Power Metal Botswana have been received and the transfer completed.
  • Should Power Metal at its sole volition exercise the Option for the acquisition of PL 126/2019 and PL 127/2019, the Company will pay an initial consideration of £25,000, payable through the issue to the Vendors of 833,333 new ordinary Shares of 0.1p each in the Company (“New Ordinary Shares”) at an issue price of 3.0 pence per New Ordinary Share (“Initial Exercise Shares”).
  • Thereafter should Power Metal elect to proceed with the year 3 exploration spend programme (for the year ending 30 September 2022) it will pay a further consideration of £50,000, payable to the Vendors through the issue of 833,333 New Ordinary Shares at an issue price of 3.0p each for each licence where such spending is confirmed, thereby if both confirmed then 1,666,666 New Ordinary Shares would be issued (the “Further Exercise Shares”).
  • In addition, Power Metal will pay a single further consideration payment of £100,000 through the issue the Vendors of 3,333,333 New Ordinary Shares at an issue price of 3.0p (“Final Exercise Shares”) if either of the two following conditions are met:

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

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

  •  Additionally, the Company shall issue to VC 5,833,332 warrants (the “Vendor Warrants”) in two separate tranches of 2,916,666 warrants each:
    • 2,916,666 Vendor Warrants shall be issued to acquire New Ordinary Shares at an exercise price of 5p per share, exercisable over a 2-year period from today’s date and which are only exercisable on completion of drilling against which the £50,000 offset payment has been made and successful transfer of PLs 126/2019 and 127/2019 to Power Metal Botswana (the “5p Vendor Warrants”). The 5p Vendor Warrants shall be subject to a 5-day VWAP accelerator, by which should Power Metal shares trade above 10p for 5 trading days then the Company shall have the right to serve notice on VC that it must exercise and pay for the exercised 5p Vendor Warrants within 14 calendar days or the 5p Vendor Warrants shall be cancelled.
    • 2,916,666 Vendor Warrants shall be issued to acquire New Ordinary Shares at an exercise price of 7.5p per share, exercisable over a 2-year period from today’s date and which are only exercisable on completion of drilling against which the £50,000 offset payment has been made and successful transfer of PLs 126/2019 and 127/2019 to Power Metal Botswana (the “7.5p Vendor Warrants”). The 7.5p Vendor Warrants shall be subject to a 5-day VWAP accelerator, by which should Power Metal shares trade above 15p for 5 trading days then the Company shall have the right to serve notice on VC that it must exercise and pay for the exercised 7.5p Vendor Warrants within 14 calendar days or the 7.5p Vendor Warrants shall be cancelled.
  • Up to 30 September 2022 Power Metal will engage VC to quote for all drilling activities undertaken on PL 126/2019 and PL 127/2019.
  • The Vendors and their professional licensing and geological teams will continue to work with Power Metal following Option exercise to manage licences and third party relationships, undertake ground exploration and to help where appropriate to further build the licence footprint in Botswana. Reasonable commercial terms will be agreed for any additional work undertaken.

Glossary:

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

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

Arsenic-in-soil anomaly – Geochemical anomaly defined by increased arsenic levels over background.

Gold-in-soil anomaly – Geochemical anomaly defined by increased gold levels over background.

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

Gabbroic-troctolitic intrusives – Coarse grained, dark coloured, intrusive rocks composed mainly of pyroxene, plagioclase and minor amounts of amphibole and olivine.

Lower greenschist to amphibolite facies – Metamorphic rocks with increased chlorite, serpentine, and epidote (greenschist), or amphibole and plagioclase (amphibolite) which are indicative of a high degree of metamorphism caused my intense heat and pressure in the subsurface.

Granitoids – Coarse grained igneous rock composed mostly of quartz, alkali-feldspar and plagioclase.

 

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.

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Power Metal (POW) – New Incubator Subsidiary, Power Capital Investments Ltd

New Resource Project Incubator Subsidiary

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce it has established a new 100% owned and subsidiary ‘incubator’ business: Power Capital Investments Ltd (“Power Capital”). Power Capital will initially be fully funded by Power Metal.

Power Capital will actively identify small, entrepreneurial business ventures with significant growth potential in the junior resource space and provide support with regard to business management, project development and corporate development to enable them to scale rapidly and realise their potential.  Power Capital may also provide financial support.

Power Capital will look to develop these fledgling, high-potential early stage ventures, to the point of sale, public listing, or incorporation into the Company’s portfolio, dependent on a set of key performance indicators to be established.

As a major shareholder in each selected business, Power Capital, and thereby Power Metal, has the opportunity for significant capital appreciation from each successful venture together with a self-created pipeline of new resource projects for operational development by Power Metal.

Power Capital is the next step in Power Metal’s quest to build a strong, diversified and successful company and to create significant value for its shareholders.

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

“We are delighted to announce the establishment of a new ‘incubator’ subsidiary business, Power Capital Investments Ltd.

We are aware that across the globe, there are numerous opportunities with huge potential for discovery that can struggle to get past the initial phase of conception, due to a combination of funding restrictions and lack of managerial resources to apply to corporate development. Power Capital provides our highly experienced team at Power Metal the chance to access, screen, and select only the very best of these opportunities, and to nurture the growth of these fledgling companies in exchange for equity.

It is expected that over time, Power Capital will further strengthen Power Metal’s portfolio of projects and create further value for our shareholders, as successful ventures are either incorporated into our portfolio, sold, or listed publicly.”

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Power Metal #POW – Australia Gold Joint Venture – Further Licences Granted

Two further licences granted with the JV now holding seven granted licences

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

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

Highlights:

  • Following grant to RRAL of its first five gold exploration licences in Victoria, announced on 2 February 2021 and 17 March 2021, a further two licences have now been granted:
    • EL007329 (Evergreen) covering 484 sq km
    • EL007301 (Mt Bute), covering 85 sq km.
  • The seven granted licences in Victoria now cover an exploration area of 848 sq km, including numerous old mines and workings and identified geological targets.
  • With the bulk of the ground covered by the previously prepared NI 43-101 technical report (1) now at granted status, the IPO process for RRAL will accelerate.

(1) A copy of the NI 43-101 technical report may be viewed on the Power Metal website through the following link:   https://www.powermetalresources.com/Uploads/2020-09-21-0078-Caracle-KineticsRM_RedRock_NI43-101_Sept21_2020_F_complete.pdf  

 

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

“Today’s news marks a key point in the development of RRAL with the grant of the Evergreen tenement which is one of the larger licence applications and sits in an area of particular interest as demonstrated by increasing investment by peer companies in project acquisition and exploration.

Grant of the two licences moves the IPO process front and centre. We believe that the core interests of RRAL forming the basis for an IPO on the Canadian capital markets represents one of the most comprehensive investment opportunities in the Victoria Goldfields for Canadian and international investors.

RRAL are therefore moving forward at pace with both project exploration and corporate listing developments.”

 

FURTHER INFORMATION

Joint Venture Company – RRAL

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

Granted Licences

RRAL has seven granted licences over an area of 848 km2 and covering high priority areas where RRAL has early drill targets that it is developing.

Licence Number

Project Name

Area (km2)

EL007271

 

Blue Whale

133

EL007281

 

Blue Chip

74

EL007285

 

Blue Ribbon

8

EL007301

Mt Bute

85

EL007327

Blue Stocking

60

EL007329

Evergreen

484

EL007385

Sardinia

  4

Total

848

 

Applications

RRAL has licence applications in process for nine other new gold exploration licence areas covering approximately 1,488 km2 in the Victoria Goldfields of Australia as follows:

 

Licence Application Number

Project Name

Area (km2)

EL007282

 

Blue Sky

489

EL007294

Red Queen

130

EL007328

Blue Yonder

168

EL007330

Blue Angel

202

EL007460

Kilmore West

349

State land within EL007271

 

(EL007505

EL007506

EL007507)

 

 

 

 

 

 

 

(9)

(9)

(8)

EL007540*

(3 competing applications)

 

Outer Ballarat

148

Total

c 1,486

 

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

 

In addition to the Victoria Goldfields above RRAL has also made exploration licence applications in Western Australia as included in the table below.  Please note where indicated below and there is another applicant the application will be subject to a ballot.

EL45/5859

(One competing application)

Paterson

227

EL45/5885

Pilbara/Paterson

70

EL45/5881

(One competing application)

Pilbara/Paterson

33

 

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

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

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

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

CHIEF EXECUTIVE OFFICER STATEMENT

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

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

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

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

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

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

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

BACKGROUND

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

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

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

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

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

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

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

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

THE PATERSON PROVINCE

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

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

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

FDR AUSTRALIA AND ITS BUSINESS INTERESTS

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

The Wallal Project – E45/5816 – Licence Application

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

Ripon Hills Project – E45/5088 – Granted Exploration Licence

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

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

Wallal West 1 Project – E45/5853 – Licence Application 

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

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

Wallal West 2 Project – E45/5880 – Licence Application

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

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

Braeside West Project – E45/5854 – Licence Application

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

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

FDR Australia Additional Disclosure

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

EXPLORATION RATIONALE

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

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

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

TRANSACTION TERMS – ACQUISITION OF FDR AUSTRALIA

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

COMPETENT PERSON STATEMENT

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

References:

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

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

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

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

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

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

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

 

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

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

Highlights:

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

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

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

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

*ref: Navarre Minerals Ltd website

Background Information on Current Programme

Prospects

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

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

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

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

Programme

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

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

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

FURTHER INFORMATION

Joint Venture Company – RRAL

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

Granted Licences

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

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

License Application Number

Project Name

Area (km2)

EL007271

 

Blue Whale

133

EL007281

 

Blue Chip

74

EL007285

 

Blue Ribbon

8

EL007327

Blue Stocking

60

EL007385

Sardinia

  4

Total

279

Applications

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

Licence Application Number

Project Name

Area (km2)

EL007282

 

Blue Sky

489

EL007294

Red Queen

130

EL007301

Mt Bute

85

EL007328

Blue Yonder

168

EL007329

Evergreen

486

EL007330

Blue Angel

202

EL007460

Kilmore West

349

State land within EL007271

 

[EL007505

EL007506

EL007507]

 

 

 

 

 

 

 

[9

9

8]

EL007540*

(3 competing applications)

 

Outer Ballarat

148

Total

c 2,057

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

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

Power Metal Resources #POW Completes Botswana Molopo Farms Complex US$500,000 Earn-in to 40% Direct Project Interest

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce that the Company has now completed the earn-in to a 40% direct project interest in the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project.

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

“In a journey that began with our original agreement with Kalahari Key in May 2019, the MFC Project has moved forward dramatically.

On 8 April 2021 we announced significant nickel intersections from diamond drill programme assays and we currently await receipt and interpretation of further assay results, mineralogical testing outcomes and an array of further data from additional geophysical interpretations.

We are seeking a World Class nickel discovery and the findings so far have been extremely positive. It is therefore with some excitement that we announce completion of our US$500,000 earn-in.

Work continues at pace locally in Botswana and in the testing of samples in South Africa.  In this regard I look forward to providing further updates to the market.”

Earn-in Background Information

The MFC Project is targeting prospective magmatic intrusion-hosted massive nickel sulphide and platinum-group element (“PGE”) mineralisation in Botswana.

Pursuant to an agreement announced by the Company on 13 May 2019, Power Metal had the right to earn-in to a 40% direct project interest in the MFC Project by expending US$500,000 on exploration expenditure, notably drilling of key targets at the Project.

Cash payments against this earn-in commenced in October 2020 and the Company can now confirm that it has fully satisfied the US$500,000 expenditure commitment and written confirmation of this has been received from Kalahari Key.

As a result, Power Metal has secured a 40% direct interest in the MFC Project.  In addition, the Company holds 18% of the issued share capital of Kalahari Key.  Taken together the combined effective economic interest of Power Metal in the MFC Project is 50.8%.

(Note: previously Power Metal held an 18.26% equity interest in Kalahari Key.  This percentage has been reduced to 18% following the exercise of 333 share options held by a Kalahari Key director at a total exercise cost of US$19,880.  Power Metal has continued to hold 3,542 Kalahari Key shares throughout. There are 1,225 outstanding Kalahari Key options held by Kalahari Key current/former senior management team members representing potential further dilution of a maximum 4.76% and with a total exercise cost of US$73,500).

Appropriate steps are now being taken to restructure the ownership of the MFC Project and holding company Kalahari Key to reflect the above.

Power Metal also agreed to participate in a rights issue for Kalahari Key, the settlement of which is anticipated shortly and will increase Power Metal’s interest in Kalahari Key to 5,313 shares or 21.7% of issued share capital, as fully diluted by the rights issue.  This will increase the Company’s effective economic interest in the MFC Project to 53.02%.

Latest Exploration Information

Latest exploration results from the MFC Project including assays from diamond drilling displaying significant nickel intersections were published on 8 April 2021 and may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/botswana-molopo-farms-complex-assay-results/14929973

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

Power Metal Resources #POW – Further CEO Share Purchase

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company was notified that yesterday Paul Johnson, Chief Executive Officer of the Company, purchased on market  500,000 ordinary shares of 0.1 pence each in the Company (“Ordinary Shares”) at a price of 2.39p per Ordinary Share through his Self-Invested Personal Pension (“SIPP”)(£11,957 invested in this transaction, and £23,452 invested in total on 15 April 2021 including the 500,000 purchase announced on 15 April 2021). 

Following the above purchase Mr Johnson has a beneficial interest in a total of 62,500,000 Ordinary Shares, representing approximately 5.47% of the issued share capital of the Company.

**Ends**

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

 

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

Power Metal Resources #POW – CEO Share Purchase

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company was notified that today Paul Johnson, Chief Executive Officer of the Company, purchased on market  500,000 ordinary shares of 0.1 pence each in the Company (“Ordinary Shares”) at a price of 2.299p per Ordinary Share through his Self-Invested Personal Pension (“SIPP”)(£11,495 invested). 

Following the above purchase Mr Johnson has a beneficial interest in a total of 62,000,000 Ordinary Shares, representing approximately 5.42% of the issued share capital of the Company.

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

 

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

Alan Green talks to Power Metal Resources #POW CEO Paul Johnson – Building a Mid-Tier Business

Power Metal Resources #POW CEO Paul Johnson and Alan Green discuss the strategic aims of POW before looking at progress across key projects during Q1 and upcoming development milestones for Q2.

Paul updates on the Red Rock #RRR Australasia RRAL JV in Victoria, plus Paterson Province options in Australia, the Botswana KCB and Ditau joint ventures with Kavango Resources #KAV and the drilling results from the Molopo Farms project. The Haneti Nickel JV with Katoro Gold #KAT in Tanzania is covered, before we move to Canada and discuss the new Hemlo Gold belt projects and progress at Silver Peak. Paul covers the three separate project spinoffs and potential IPOs (RRAL, Kanye and Silver Peak), and explains how this will help POW to build working capital and ultimately lead to shareholder distributions.

Paul discusses the strong funding position enjoyed by Power Metal, and explains how being a major shareholder in the company is his key motivation.

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