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Power Metal Resources (POW) – Acquisition of Gold-Copper Projects Nevada USA

Signed Agreement to acquire a 100% Interest in the Garfield Gold-Copper and the Stonewall Gold Exploration Properties Located in Nevada, USA

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the execution of an agreement (the “Agreement”) to acquire two exploration properties in Nevada USA.

The projects include the Garfield Gold-Copper Project and the Stonewall Gold Project (together the “Acquisition Properties” or the “Properties”), acquired outright from London quoted Sunrise Resources plc (LON:SRES).

The Properties will be acquired by a Nevada limited liability new company which will be the wholly owned local Nevada operating company for Golden Metal Resources Limited (“Golden Metal”), Power Metal’s 100% owned UK private subsidiary.

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

“The Acquisition Properties provide Power Metal with further exposure to precious and base metals exploration in Nevada USA and complement the recently acquired option over the Golconda Summit Gold Property, also in Nevada and announced on 1 June 2021.

Through this transaction Golden Metal, the wholly owned Power Metal subsidiary, now has a trio of gold – silver – copper exploration projects, targeting major metal discoveries in Nevada USA.

We expect to launch ground exploration in Nevada shortly, initially targeting near surface significant gold mineralisation at the Golconda Summit gold property and thereafter initial work programmes on the two properties acquired with today’s announcement. Further updates to the market in this regard are expected in the near term.”

VENDOR AND PROPERTY INFORMATION

The Vendor of the Properties is London AIM quoted Sunrise Resources plc (LON:SRES) and its two Nevada based wholly owned subsidiaries SR Minerals Inc and Westgold Inc.

The Acquistion Properties consist of two portfolios of United States Department of the Interior Bureau of Land Management (“BLM”) Mining Claims held 100% and in good standing by SR Minerals Inc. for the Garfield Gold-Copper Project (“Garfield”); and by Westgold Inc. for the Stonewall Gold Project (“Stonewall”).

Garfield

The Garfield Project is located approximately 10km east of the town of Hawthorne in Mineral County, Nevada. Garfield is in the prolific Walker Lane mineral belt which hosts several world class gold-silver epithermal (Comstock Lode, Tonopah), copper-gold porphyry (Anaconda), and iron-oxide-copper-gold deposits (Pumpkin Hollow).

Garfield was staked to cover a small area of gossanous material occurring at surface and discovered by Sunrise Resources in 2015. Initial sampling over the gossan returned rock results up to 6% Cu, 3.5g/t Au, and 124g/t Ag. A single 26m trench was oriented over part of the gossan in 2016 and returned an interval of 22m of 0.33% copper, including a 2m sub-interval grading 2.18% copper (16m-18m), and a separate 2m sub-interval grading 1.2g/t Au. The trench ended in mineralisation and remains open along strike. No additional follow up work has been completed on the Project.

The Company plans on executing a Phase 1 work programme that will include a property wide systematic soil geochemical survey designed to test continuity of skarn and porphyry-style mineralisation and elevated copper between the various historic grab sampling localities. The soil survey will be followed by a programme of trenching  which should provide a cost effective means of evaluating any copper, gold and silver anomalies identified by the soil survey.

In addition the 2016 trench will be re-opened and extended to provide coverage of the mineralisation which currently remains open along strike. 

 

Stonewall

Stonewall is located approximately 15km south of the historic mining town of Goldfield in Nye County, Nevada. Stonewall is also in the prolific Walker Lake mineral belt, and less than 60km southwest of the famous silver deposits of Tonopah which produced over 138 million ounces of silver from 1900-1921.1

Stonewall is centred on an approximately 1.2km long (open along strike) milky-white quartz vein with prevalent low-sulphidation epithermal boiling textures, which varies in thickness between 15-20m along its outcropping extent.

Rock sampling by previous operators returned anomalous gold-silver values (up to 1.17g/t Au and 161g/t Ag) with elevated mercury, which is characteristic of the shallow parts of a low-sulphidation epithermal system.

Minimal shallow historic drilling tested a limited strike length along the vein and returned downhole epithermal vein intersections up to 12m in width with stockwork zones up to 70m wide with elevated gold and silver results. Drilling was completed along parts of the vein easily accessible for a road, with the zones displaying the strongest epithermal textures remaining untested.

Placer Dome Inc. (now Barrick Gold Corp.), who optioned the Stonewall property in 2003, completed fluid inclusion analysis on surface samples which determined formation temperatures of 170°C, consistent with the upper parts of the epithermal System.

Considering the widths of the quartz vein and surrounding stockwork/alteration zones (up to 70m), the mapped strike-length extent (currently 1.2km; but remains open under cover) and the well developed boiling textures found at surface, the Company is of the belief that the Stonewall vein may represent the upper parts of a sizeable buried low-sulphidation epithermal system.

The Company plans on executing a diamond driling programme at Stonewall which will not only test the eastern extent, where boiling textures at surface are best developed, but also the broader system at depth where it is postulated the Au-Ag boiling zone of the system would be found.

 

TRANSACTION TERMS

The principal terms to acquire a 100% interest in the Properties are as follows:

–      Power Metal will pay initial consideration of £20,000 cash and £61,875 payable through the issue to the Vendors of 2.25 million new ordinary shares of 0.1p each in Power Metal at a price of 2.75p per share (“new Ordinary Shares”)(“Consideration Shares”).

 

–      In addition, Power Metal will issue to Sunrise Resources plc 2.25 million warrants with an exercise price of 3.75p per new Ordinary Share and life to expiry of 2 years from the date of issue (“Warrants”).  Should the volume weighted average price (“VWAP”) of Power Metal shares meet or exceed 10 (ten) pence for 5 trading days Power Metal may serve notice on Sunrise Resources plc providing 14 calendar days to exercise and pay for the Warrants or the  Warrants will be cancelled.

 

–      The Vendors will retain a 2% Net Smelter Return (“NSR”) Royalty over the Properties.  1% of each Project NSR royalty may be repurchased by Golden Metal for US$1,000,000 at any time.

–      The Properties will be acquired by a Nevada limited liability newly formed company and the local operating company wholly owned by Golden Metal, Power Metal’s 100% owned UK private subsidiary.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 2,250,000 Consideration Shares to be admitted to trading on AIM which is expected to occur on or around 24 June 2021 (“Admission”). The Consideration Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

Following Admission, the Company’s issued share capital will comprise 1,149,017,211 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

 

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:

1Tonopah History – Tonopah, Nevada (tonopahnevada.com)

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 – Marketing and Communications Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce a marketing and communications update for shareholders.

Launch of New Website

The Company is pleased to announce the launch of its new corporate website.

With the growth of the Company’s global portfolio in recent months and exploration across the project portfolio, the team at Power Metal have been working hard on shareholder communications and are pleased to provide a new website in the recently rebranded corporate identity.

The new website provides an up-to-date summary of the Company’s project portfolio and corporate affairs and may be accessed through the following link: www.powermetalresources.com  

Shares Magazine Investor Evening

The Company’s Chief Executive Officer Paul Johnson will be delivering a presentation and answering investor questions at the forthcoming Shares Magazine Investor Evening on 16 June 2021 (starting at 6pm).  Investors wishing to attend this online event may register through the following link:

https://www.sharesmagazine.co.uk/events/event/shares-investor-evening–webinar-160621

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 large scale metal discoveries.

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.

Alan Green discusses Petroteq Energy #PQE & Power Metal Resources #POW on his weekly Stockbox Media Research talk

Alan Green discusses Petroteq Energy #PQE & Power Metal Resources #POW on his weekly Stockbox Media Research talk

Power Metal Resources #POW CEO Paul Johnson purchases 500,000 shares

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company was notified today that Paul Johnson, Chief Executive Officer of the Company, purchased 500,000 ordinary shares of 0.1 pence each in the Company (“Ordinary Shares”) on market  at a price of 2.49p per Ordinary Share through his Self-Invested Personal Pension (“SIPP”)(£12,450 invested in this transaction).  

Following the above purchase Mr Johnson has a beneficial interest in a total of 63,000,000 Ordinary Shares, representing approximately 5.49% of the issued share capital of the Company.

PDMR Disclosure

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

 

1

Details of the person discharging managerial responsibilities / person closely associated

a)

Name

1.  Paul Johnson

2

Reason for the notification

a)

Position/status

 

1.  Chief Executive Officer

b)

Initial notification /Amendment

Initial Notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

a)

Name

Power Metal Resources Plc

b)

LEI

213800VNXOUPHTX53686

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

a)

Description of the financial instrument, type of instrument

ordinary shares of 0.1p each

Identification code

ISIN: GB00BYWJZ743

b)

Nature of the transaction

1.  Purchase of shares

c)

Price(s) and volume(s)

Price(s)

Volume(s)

2.49 pence

500,000

d)

Aggregated information

– Aggregated volume

500,000

 

– Price

2.49 pence

e)

Date of the transaction

4 June 2021

f)

Place of the transaction

XLON

 

 

 

**Ends**

 

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

 

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

Notes to Editors:

P ower 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 Company Option Pool and Proposed Award of Non-executive Director Options

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

Company Option Pool 

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

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

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

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

Proposed Award of Non-executive Director Options

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

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

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

Related Party Transaction

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

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

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

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

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

Overall Summary of Director Options

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

Director

Number of Ordinary Shares under option

Terms

Andrew Bell (Chairman)

13,613,929*

7,500,000*

1.0p exercise price, expiry 15/02/2022

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

Paul Johnson (CEO)

13,613,929*

12,500,000*

1.0p exercise price, expiry 15/02/2022

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

Scott Richardson Brown

(Non-executive director)

500,000*

500,000*

5,000,000*

5,000,000^

5.0p exercise price, expiry 28/08/2023

5.0p exercise price, expiry 28/08/2023

1.0p exercise price, expiry 19/02/2023

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

Edmund Shaw

(Non-executive director)

5,000,000*

5,000,000^

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

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

*Existing options

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

Total

68,227,858

 

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

 

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

Power Metal Resources plc #POW – Total Voting Rights

Total Voting Rights

In accordance with the Financial Conduct Authority’s Disclosure and Transparency Rules, the Company hereby announces that as at 31 May 2021 there were 1,146,767,211 ordinary shares of 0.1 pence each in issue, none of which were held in treasury. Therefore, the total number of voting rights in the Company was 1,146,767,211.

The above figure of 1,146,767,211 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 and Transparency Rules.

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: Agreement – Golconda Gold Property Nevada USA

Agreement – Golconda Gold Property Nevada USA

Company has Signed an Assignment and Assumption Agreement Allowing it to Earn a 100% Interest in the Golconda Summit Gold Property Located in Nevada, USA

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the execution of an Assignment and Assumption Agreement (the “Agreement”) between its wholly-owned subsidiary Golden Metal Resources Ltd. (“Golden Metal”) and GR Silver Mining Ltd. (“GR Silver”).

The Agreement gives Golden Metal an option to earn-in to 100% of the Golconda Summit Gold Property (“Golconda Summit” or the “Property”) located in central Nevada, USA.

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

“We recently formed Golden Metal to act as a holding company for new acquisitions of precious and base metal projects located in North America and I am pleased to announce this first transaction within the mining friendly state of  Nevada.

The option agreement on the Golconda Summit Gold Property gives the Company exposure to an exciting carlin-type gold project located in the highly gold endowed Great Basin district at the confluence of the prolific Battle Mountain-Eureka and Getchell gold trends.                                                                           

I look forward to updating the market with further information on the Property  in the coming weeks.”

Vendor and Property Information

GR Silver Mining Ltd is a Vancouver based publicly traded (TSX-V:GRSL) junior mining company focused on advanced stage silver-gold assets in Mexico.

GR Silver has held an option agreement since 11 August 2017, to earn-in to 100% of the Golconda Summit Gold Property from the underlying vendor Eureka Resources Conversion LLC (“Eureka Resources”), a private Nevada based company.

Golconda Summit is an early-stage gold exploration project comprising 44 current Bureau of Land Management (“BLM”) Lode Claims held in the name of Eureka Resources.

The Property is located approximately 15km east of to the town of Winnemucca, at the confluence of the prolific Battle Mountain-Eureka Trend and Getchell Trends and within Nevada’s Great Basin metallogenic province which is one of only six global gold belts hosting gold endowments of +200Moz. The Property is approximately:

  • 35km southwest of the Nevada Gold Mines LLC (“Nevada Gold” a Barrick Gold Corporation/Newmont Corporation joint venture) Turquoise Ridge Complex underground and open-pit mines which have Total 43-101 compliant Resources (Measured & Indicated) of 130Mt @ 4.30g/t Au (for 18Moz Au) inclusive of Total Reserves (Proven & Probable) of 83Mt @ 5.02g/t Au (for 13Moz Au) 1;
  • 20km northwest of Nevada Gold’s Phoenix Operation Lone Tree open-pit mine which reportedly produced 4.2Moz Au at an average grade of 2.06g/t Au up until its closure in 2006 2; and
  • 25km northwest of SSR Mining Inc.’s Marigold open-pit mine with current Total 43-101 compliant Resources (Measured & Indicated) of 5.11Moz Au  (341Mt @ 0.47g/t Au) 3.

Previous exploration work on the Property by Nerco Mineral Company in 1989 encountered significant gold mineralisation located within upper plate Havallah Sequence rocks including trench assay results of 7.6m @ 24.0g/t Au and 15.2m @ 8.6g/t Au, as well as shallow drilling results of 10.7m @ 3.9g/t Au.4

The Property is considered prospective for the identification of additional near-surface gold mineralisation within Havallah Sequence rocks as well as for Carlin-type replacement style gold mineralisation within lower plate Edna Mountain Formation and Antler Peak Limestone units located below the Golconda thrust fault.

Assignment and Assumption Agreement

  • The Agreement signed with GR Silver allows Golden Metal to earn a 100% interest in the Golconda Summit Gold Property located in Humboldt County, Nevada, USA.
  • The Agreement signing fee is to be satisfied through a cash payment of US$60,000 (circa £42,495) to GR Silver, to be paid by Power Metal from exisiting cash resources.
  • Golden Metal will be assigned the underlying option agreement (“Underlying Option”) signed on 11 August 2017, between GR Silver and the underlying vendor Eureka Resources Conversion LLC.

Underlying Option Agreement

  • The Underlying Option agreement allowed GR Silver to earn a 100% undivided interest in the Golconda Summit Gold Property upon satisfying either the Staged Payments Option or the Accelerated Payment Option, both outlined below  (Golden Metal will assume the terms of this agreement unchanged):

Staged Payments Option

–      Ten thousand (US$10,000) dollars due and payable on the execution of the Underlying Option (Paid previously by GR Silver);

–      A further fifteen thousand (US$15,000) dollars due and payable on or before the second (2nd) anniversary of the effective date (Paid previously by GR Silver);

–      A further fifteen thousand (US$15,000) dollars due and payable on or before the third (3rd) anniversary of the effective date (Paid previously by GR Silver);

–      A further twenty thousand (US$20,000) dollars due and payable on or before the fourth (4th) anniversary of the effective date (by 11 August 2021);

–      A further twenty-five thousand (US$25,000) dollars due and payable on or before the fifth (5th) anniversary of the effective date (by 11 August 2022);

–      A further fifty thousand (US$50,000) dollars due and payable on or before each of the sixth (6th), seventh (7th), eight (8th), ninth (9th) and tenth (10th) anniversaries of the effective date, for a combined total of $335,000.

Accelerated Payment Option

–      GR Silver may accelerate the exercise of the Underlying Option at any time by paying the owner a lump sum cash payment equal to one million (US$1,000,000) dollars less any annual Undelying Option payment paid to the owner prior to the date thereof.

 

Upon completion of the earn-in agreement, Eureka Resources will be granted a 1% net smelter return royalty which can be bought back at any time within one (1) year after commencement of production of any minerals from the Property for a price of one million dollars (US$1,000,000).

Golconda property maps are available on the Company’s website through the following link:

Golconda Property Maps | Power Metal Resources plc

The maps include:

Figure 1: Regional scale Golconda Summit Property Map

Figure 2: Property scale Golconda Summit Property Map

 

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: Nevada Gold Mines Technical Report on the Turquoise Ridge Complex, State of Nevada, USA; NI 43-101 Report dated 25 March 2020. https://s25.q4cdn.com/322814910/files/doc_downloads/operations/Turquoise-Ridge-Technical-Report-March2020.pdf 

Source 2: Magmatic-Hydrothermal Gold Mineralization at the Lone Tree Mine, Battle Mountain District, Nevada; 1 August 2019. https://doi.org/10.5382/econgeo.4665 

Source 3: SSR Mining Inc Mineral Reserves and Resources Statement, announced 30 March 2021  https://www.ssrmining.com/_resources/2021-03-30-Reserves-and-Resources-Final.pdf   

Source 4: Summary Report for the Golconda Summit Property Iron Point Mining District, Humboldt County, Nevada; unpublished report prepared for Carlin Gold Corporation and Toquima Minerals US Inc. by K. Brook, dated 4 April 2006. 

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 – Interim Results for 6 months ended 31 March 2021

Power Metal Resources plc the AIM listed metals exploration and development company is pleased to announce its unaudited interim results for the six months ended 31 March 2021.

Statement by Paul Johnson, Chief Executive Officer: 

“In the six months ended 31 March 2021 we have pushed the Power Metal business to explore extensively across its project portfolio with, in our view, some excellent and very fortunate findings. We are seeking large scale metal discoveries with the emphasis on plural as we believe our portfolio is capable of delivering a number of discoveries.

Junior resource exploration is a high-risk endeavour, so investors in Power Metal rightly expect the potential for outsized returns that come with discoveries and to achieve them requires proactivity and investment in exploration. 

Since October 2020 we have invested in exploration work in every single project we hold an interest in including three separate drill programmes across interests in Botswana, Canada and Tanzania.  There are more planned drill campaigns in the coming months.   

Notable exploration successes announced to date include the identification of extensive anomalies from the Kalahari Copper Belt, Botswana (held in JV with Kavango Resources plc), significant nickel drill intersections from Molopo Farms Complex Project, Botswana, and bonanza grade silver from the Silver Peak Project, Canada.  These are by no means the only successes and as noted above we have been very fortunate with early exploration success across our portfolio.

Notwithstanding the exploration progress being made, and our search for large scale metal discoveries, we are also running a commercial enterprise that has to balance the books and generate working capital to fund its operations. 

We recognise the value of the London capital markets providing access to additional finance and that is one of the principal reasons junior resource companies list. That said we are also looking to build our working capital organically through targeted growth in our investment portfolio and the spin-out of certain projects into their own listed vehicles.   

Financial strength for a junior exploration company is important and as at 21 May 2021 Power Metal had working capital of circa £2.57 million, representing cash and listed company investments. This robust working capital figure was notwithstanding the material expenditure on exploration and corporate development in the half year ended 31 March 2021.

We seek size and scale in our business through metal discoveries in district scale exploration and innovative corporate activity.  To do this we have recognised the need to build our operational team and now have an in-house Exploration Manager, Investor Relations Manager and Corporate Spin-Out Management.  The expanded team is intensively engaged on delivering growth in our business through our project portfolio.

I would like to thank the board and Power Metal team for their determined dedication to our business objectives.  The support we receive from our advisor network continues to be first rate and needs to be as Power Metal is a proactive company.

As always, and never to be left unsaid, I thank our shareholders for their support and commitment to the Power Metal business and its ambitions.  It is easy to be ordinary, yet we have no such desire, and with the support of our shareholders we aim to make Power Metal a stand-out performer demonstrating how an ambitious, determined junior resource company can deliver.”

Power Metal Interests at today’s date:

Country

POW %

Project

Resources

Targeted

Australia

49.9%

Victoria Goldfields

Gold

Australia

75%(1)

Paterson Province

Copper – Gold

Botswana

50.8%(2)

Molopo Farms Complex

Nickel – Copper – Platinum Group Metals (PGMs)

Botswana

50%

Kalahari Copper Belt

Copper – Silver

Botswana

50%

Ditau Camp

Rare Earth Elements

Canada

30%

Silver Peak

Silver

Canada

100%

Schreiber-Hemlo Projects

Gold – Nickel

The DRC

70%

Kisinka

Copper – Cobalt

Tanzania

35%

Haneti

Nickel – Copper – PGMs – Gold – Lithium

USA

Earn-in up to 75%

Alamo Gold

Gold

(1) Conditional agreement to acquire First Development Resources (Pty) Ltd.

(2)   50.8% reflects effective economic interest including 40% direct project interest and 10.8% indirect interest through shareholding in project holding company Kalahari Key Mineral Exploration Pty Ltd

Operational Highlights

In the Half Year to 31 March 2021:

Australia

· Further development of the Australian Gold Joint Venture focused on the Victoria Goldfields including notably the grant of the first three exploration licences announced in February 2021, a further two licences in March 2021 and the commencement of ground exploration across the granted licence ground.

· Option Agreement announced in January 2021 to acquire First Development Resources Pty Limited with interests in two copper-gold properties in the Paterson Province  Eastern Pilbara, Western Australia. (Note this Agreement was subsequently superseded in April 2021 as outlined below).

Botswana

· Drilling commenced in October 2020 at the Molopo Farms Complex Project in Botswana with a 2,500m diamond drill programme targeting nickel sulphide and platinum group metal (“PGM”).  By half year end 3 holes were complete with results sent for assay testing.  Mineralogical studies confirmed the presence of nickel sulphides in drill core. 

· Exploration work undertaken across the Botswana Joint Venture with Kavango Resources plc (LON:KAV) at the South Ghanzi (Kalahari Copper Belt), targeting copper-silver and the Ditau Project, targeting rare earth elements.

Canada

· A 500m diamond drill programme was launched in October 2020 at the Silver Peak Project in British Colombia, Canada, but access challenges and weather conditions led to a change in plans with a man-portable drill rig being used instead to undertake a shortened drill programme. Results announced December 2020 showed high grade silver and demonstrated mineralised vein continuity, with the full drilling programme planned to recommence in 2021. 

· Acquisition of 7 exploration properties in the Schreiber-Hemlo region of Ontario.

The Democratic Republic of the Congo (The DRC)

· High grade copper and cobalt values announced November 2020 from assay testing on the 2020 pitting, mapping and sampling undertaken at the Kisinka Project in the DRC, which led to the commencement of ground geophysics in December 2020 to delineate targets for drilling.

Tanzania

· A rotary air blast drill programme commenced in December 2020 at the Haneti Nickel Project, held in joint venture with Katoro Gold plc (LON:KAT), to provide information leading into a subsequent planned diamond drill programme targeting nickel sulphide and Platinum Group Metals.

USA

· Exploration fieldwork undertaken at the Alamo Gold Project in Arizona USA, as announced in December 2020. 

After 31 March 2021:

· The Rotary Air Blast drilling programme results from the Haneti Nickel PGM Project were announced in April 2021 and confirmed the move to deep diamond drilling;

· Assay results released in April 2021 from hole K1-6 at the Molopo Farms Complex Project in Botswana, confirming significant nickel intersections and later that month the Company confirmed the completion of its earn-in to a 40% direct project interest; 

· Extensive exploration work continued at the Australian Gold Joint Venture in the Victoria Goldfields granted licences and a further update covering this was provided in April 2021, together with confirmation of a further two licence grants later that month;

· A conditional acquisition of First Development Resources Pty Limited was announced in April 2021, with a revised acquisition structure and now including 5 licence interests in the Paterson Province, East Pilbara, Western Australia;

· The Company announced the creation of a new resource project incubator subsidiary in May 2021, Power Capital Investments Limited;

· In May 2021, the Company announced the Kisinka Project in the DRC saw prominent magnetic highs identified from ground geophysics, and an intention to drill at Kisinka following completion of preparatory exploration work.  In addition, confirmation was received that the project had been awarded a 25-year Production Licence; 

· An Option agreement was announced in May 2021 allowing for the acquisition of a 100% interest in two exploration licences in the Tati Greenstone Belt, Botswana, targeting gold and nickel;

· In May 2021 positive findings were announced from the South Ghanzi Project in the Kalahari Copper Belt, Botswana, with extensive anomalies identified including 7 airborne electromagnetic targets for follow up geochemical sampling and drill testing; and

· As at 21 May 2021, Power Metal’s working capital comprising cash and listed investments amounted to circa £2.57 million, providing a robust underlying financial position for ongoing operations. 

Financial Highlights for the Half Year Ended 31 March 2021:

· Loss for the period, attributable to owners of the parent of £0.59 million (2020: £0.24 million), resulting in a loss per share of 0.07 pence (2020: 0.05 pence);

· Warrant exercises during the period raised £2,692,474 for the Company; and

· Net assets of £4.6 million at the period end (30 September 2020: £2.4 million).

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

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

 

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883 

Notes to Editors:

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

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

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

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

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update regarding the Conditional Australia Copper – Gold Acquisition (the “Transaction”) announced on 28 April 2021 and which may be viewed in the following link:

https://www.londonstockexchange.com/news-article/POW/conditional-australia-copper-gold-acquisition/14955517

The Transaction includes the acquisition of a 100% interest in First Development Resources Pty Limited, an Australian private company (“FDR Australia”), to include FDR Australia’s five exploration licence interests (four licence applications and one granted exploration licence). 

The vendors include shareholders of FDR Australia and various third parties with interests in the exploration properties (the “Vendors”).   

As part of the Transaction FDR Australia is to be acquired outright by a new UK private company (“FDR UK”), in which Power Metal is to hold a 75% initial interest and the Vendors a 25% initial interest. 

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.

Transaction Progress

Power Metal and the Vendors are making good progress with the work to finalise the Transaction, including to secure the remaining four licence grants, prepare for accelerated ground exploration programmes and to pursue a planned listing of FDR UK.

Power Metal is working with the Vendors to identify the most expeditious route to complete the Transaction and to then implement the planned listing of FDR UK on the UK capital markets.

FDR UK has now been established with the formation of First Development Resources Ltd, a new UK company. 

Confirmation has been received that given the size and nature of the Transaction approval is not required from the Foreign Investment Review Board, Australia, and may thus proceed without seeking formal approval.

Work is being undertaken to finalise Heritage Agreements in respect of the Wallal Project (E45/5816 – Licence Application) and, subject to a successful outcome, this is expected to be one of the final steps prior to receipt of a granted licence for the Wallal Project.

The Power Metal exploration team has been engaging with the Vendors and their advisors to undertake planning for exploration work across the Ripon Hills Project (E45/5088 – Granted Exploration Licence) and, subject to the grant of an exploration licence, the Wallal Project.  This included liaising with the in-country geological and geophysical consulting firm Resource Potentials which conducted a detailed desktop study on behalf of the Company.

The results of this study saw the collection, analysis and interpretation of several geophysical datasets including airborne magnetics, ground gravity, 2D seismic, and airborne EM over the Property.

Following full analysis of these datasets and subject to licence grant, the Company in conjunction with Resource Potentials will plan and execute on a Phase I work programme which may include additional geophysical surveys as well as a deep drilling program targeting two coincident kilometre-scale magnetic, EM and gravity high bullseye anomalies located near the edge of the Wallal Platform.

CHIEF EXECUTIVE OFFICER STATEMENT

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

“Good progress is being made with the FDR Australia acquisition work, in terms of general administration matters and also, importantly, in exploration planning.  It is evident from our initial work that there are large exploration targets in the Transaction licence areas and we are keen to move ahead with ground exploration.

“The work also continues to pursue a potential listing for FDR UK following the planned acquisition of FDR Australia.  There is a lot of activity underway and therefore I expect further updates to the market in due course.” 

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 discovery of precious or base metals.

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.

Kavango Resources #KAV – London South East Natural Resources Webinar

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, will be presenting at the London South East May Natural Resources Webinar on 25 May 2021 at 17:45 BST.

Ben Turney, Executive Director of Kavango, will deliver a presentation titled “Why Kavango Resources should feature in your portfolio”. This will be followed by a virtual question and answer session.

To view the presentation and participate in the Q&A please visit the following link:

https://us02web.zoom.us/webinar/register/4616057084894/WN_4mo_Tp8iTNyczo4hxQ_QcQ

Kavango Overview

Kavango is currently pursuing major exploration projects in the Kalahari Suture Zone (“KSZ”) and the Kalahari Copper Belt (“KCB”) in Botswana.

In the KSZ, Kavango’s key focus in 2021 is “proof of concept”. The Company has deployed sophisticated remote sensing technologies and advanced data modeling techniques to identify high priority drill targets, for a campaign later this year. The primary objective of future drilling will be to penetrate to the bottom of one or more of the “keels” in the gabbroic formations in the four ‘Norilsk Style’ target areas, described in the announcement on 30 November 2020.

If it achieves this goal, Kavango will become the first company ever to extract drill core from the bottom of the Karoo-age gabbros in the KSZ. Analysis of such drill core is expected to provide valuable data to help establish the system’s potential to host magmatic sulphide ore bodies.

Meanwhile, in the KCB, Kavango is targeting large-scale copper/silver deposits, using tried and tested exploration methods.

The Company is currently working in two separate Joint Ventures (“JV”), one with Power Metal Resources (“Power Metal”) and one with LVR GeoExplorers Pty Ltd (“LVR”). The JV with Power Metal also includes the Ditau Rare Earth Elements Project.

Kavango has recently flown extensive Airborne Electromagnetic (“AEM”) surveys over the JV prospecting licences in the KCB. The Company is analyzing the results to augment future field exploration.

At the South Ghanzi Project (held within the Power Metal JV), Kavango announced on 14 May 2021 the identification of 7 conductors, which include three large, high-priority targets.

Results from the LVR AEM surveys are expected shortly.

At Ditau (also held within the Power Metal JV), Kavango continues to conduct surveys on the 10 “ring structures”, which might represent potential carbonatites.  Carbonatites are the principal source of REEs including the much sought-after elements Neodymium (Nd) and Praseodymium (Pr), which are used in the manufacture of the new generation of electric vehicles (EVs), magnets and other high-tech applications. The Company expects to release an update on this in the coming weeks.

To view the presentation and participate in the Q&A please visit the following link:

https://us02web.zoom.us/webinar/register/4616057084894/WN_4mo_Tp8iTNyczo4hxQ_QcQ

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

Kavango Competent Person Statement

The information in this press release that relates to “geological and/or geophysical results” for the LVR Project is based on information compiled or reviewed by Mr Mike Moles BSc (Geology) & BSocSci (African Studies), a competent person who is a Member of the Australian Institute of Mining & Metallurgy. Mr Moles has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moles consents to the inclusion in this release of the exploration results for the Project in the form and context in which it appears. Mr Moles is a beneficial shareholder of Kavango Resources plc.

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