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Power Metal Resources #POW – Exercise of Warrants

 

Power Metal Resources plc (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an exercise of warrants.

Warrant Exercise

The Company has received a notice to exercise warrants over 2,500,000 new ordinary shares of 0.1 pence each in the Company (“Warrant Shares”) at an exercise price of 0.75p per Warrant Share and raising an additional £18,750 for the Company. 

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 2,500,000 Warrant Shares to be admitted to trading on AIM which is expected to occur on or around 31 May 2022 (“Admission”). The Warrant 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 1,472,167,740 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.

Power Metal Resources – Victorian Gold Fields – Grant of Key Licences

 

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update in relation to its joint-venture subsidiary New Ballarat Gold Corporation plc (“NBGC”), which is focused in the prolific Victorian Goldfields of Australia.

NBGC is a joint-venture held between Power Metal (49.9%) and its partner, London-listed Red Rock Resources plc (50.1%).  NBGC has a 100% interest in Red Rock Australasia Pty Ltd (“RRAL”).

Highlights:

· Three further exploration licences, EL007330 (202km2), EL007294 (325km2) and EL007507 (9km2), have now been granted, bringing NBGC’s combined footprint in the Victoria Goldfields to 1,832km2.

· New license grants include EL007330 located northeast of Ballarat, Australia. Significantly, this newly granted licence covers the historical Ajax gold mine which historically produced 312,789oz gold at an average grade of 14.8g/t Au in the 1920s.1

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

“The grant of EL007330 is a considerable step forward bringing the historical Ajax gold mine into the RRAL portfolio. This mine produced 312,789 ounces of gold at an average grade of nearly half an ounce per tonne.

Whilst the RRAL land footprint is considerable, with over 1,800k m2of now granted exploration licences, without question the grant of EL007330 including Ajax is highly significant.

In our view the RRAL business holds great potential, however, what is important is what we do to maximise that value through further exploration and corporate activities.

I expect it will be an interesting few months ahead for this project package within the Power Metal business.” 

Highlights: EL007330 – Including Ajax Mine:

The historical Ajax gold mine comprises numerous shafts and workings found over several kilometres of combined strike length, which was historically mined to a vertical depth of approximately 400m. The down dip and along strike extensions of the main ore zones remain virtually untested by drilling.  A small drilling programme completed in the 1990s by Continent Resources intersected multiple lode structures with highlight results up to 15.24g/t Au over 5.2m from 120.9m downhole – demonstrating the continuity of mineralised lode structure and associated high gold grades.  The main mine shaft itself has since been backfilled and is currently not accessible.

A more detailed description of the historical Ajax gold mine is contained in the paper previously published on RRAL’s website with the file name: ‘Licence Report: EL007330 – Daylesford (Blue Angel)’ found below at:

https://www.rrrplc.com/projects-and-investments/gold/red-rock-australasia/

Work is currently under way to digitise the old mine workings into a 3D computer model in advance of a planned diamond drilling campaign which is expected to commence in late 2022 -targeting the along strike and down dip extensions of the Ajax mine’s main ore zones.

New Ballarat Gold Corporation:

NBGC holds a strong land position comprising fourteen (14) granted exploration licences for a total of 1,832km2, located entirely within the prolific gold fields of Victoria, Australia – principally surrounding the mining centre of Ballarat, Australia. Five (5) licences for a total of 493km2 are still in the application stage.

The company has carefully assembled its property portfolio to comprise a broad range from robust exploration targets to near term resource potential – all of which remain largely untested by modern explorers. 

With the first tenement within the portfolio granted only in 2021, NBGC has already conducted detailed exploration on multiple targets to date. This includes diamond drill programmes designed to test the O’Loughlin’s (520m) and Mt. Bute (340m) prospects, which commenced December 2021. The final results from these drill programmes are still pending.

 

Research Talks Special Live from the UK Investor Show in London

In a research talks special streamed from the The UK Investor Show Alan Green and Mark Fairbairn discuss MetalNRG Plc #MNRG Kavango Resources PLC #KAV Technology Minerals #TM1 and the sum of the parts valuation case for Power Metal Resources #POW

#research #gold #copper #nickel #investor #RareEarth #circulareconomy #batteryrecycling #BatteryMetals #mining #exploration #mineralexploration Rolf A Gerritsen Ben Turney Brett Grist Robin Brundle Alex Stanbury Emily Steward Harry Chathli John Bick Paul Johnson Tristan Pottas Oliver Friesen

Power Metal Resources #POW Signs Conditional Agreement to Acquire Additional 58.7% interest in Kalahari Key Mineral Exploration Pty Limited and Become Operator of the Molopo Farms Complex Project

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio   announces an acquisition update in respect of Kalahari Key Mineral Exploration (Pty) Limited (“Kalahari Key” or “KKME”).

Kalahari Key has a single project 60% interest in the Molopo Farms Complex Project (the “Project’ or the “MFC Project”) targeting a large-scale nickel – platinum group metal (“PGM”) discovery in southwest Botswana. 

HIGHLIGHTS:

§ Power Metal has signed a conditional agreement to acquire an additional 58.7% interest in the  share capital of Kalahari Key.

§ Power Metal to acquire a further 15,002 Kalahari Key shares for £807,348 payable through the issue of 46,134,171 new ordinary shares of 0.1 pence each in the Company (“Ordinary Shares”) shares at a price of 1.75p per new Ordinary Share.  Full transaction details below).

§ Following completion and a restructuring of the MFC Project interest Power Metal will hold 87.71% of Kalahari Key which will wholly own the Molopo Farms Complex Project on completion (an increase of approx. 35% from the current circa 53% MFC Project effective economic interest held by Power Metal).

§ Power Metal will become operator of the Project with immediate effect and will look to accelerate exploration, including a next stage drill programme.

Paul Johnson, Chief Executive Officer of Power Metal Resources PLC, commented: “We have today conditionally secured an increase to an 87.71% interest in Kalahari Key, which on completion will have a 100% ownership interest in the Molopo Farms Complex Project in Botswana.

The MFC project delivered excellent initial drill results last year, which we now intend to follow up at some pace as the operator of the Project.

Our target remains a large-scale nickel sulphide discovery and should we successfully move along that pathway, we are confident the MFC Project will continue to draw interest from investors and potential operational partners.”

TRANSACTION TERMS – ACQUISITION OF KKME SHARES

Power Metal is to acquire 15,002 Kalahari Key shares from current KKME shareholders (the “Vendors”) (the “Acquisition”).

Initial Consideration:

The £807,348 consideration is to be satisfied through the issue of 46,134,171 new Ordinary Shares at an issue price of 1.75p (“Consideration Shares”) and warrants over 46,134,171 new Ordinary Shares at a 3.5p exercise price with a 2-year life from today’s date (“Consideration Warrants”).

With respect to the Consideration Warrants Power Metal will hold an acceleration right, whereby should the volume weighted average Power Metal share price exceed 7.0p for 5 trading days, Power Metal has the right to serve written notice to the Vendors of 14 days to exercise and pay for the Consideration Warrants or they may be cancelled.

Further Consideration:

Additionally,  in the event, within 2 years of today’s date, that Kalahari Key or the MFC Project is sold for US$10million or greater, or a joint venture (or earn-in) agreement is signed with a potential third party where the potential project spend is US$10million or greater, Power Metal will issue the Vendors with further warrants over 46,134,171 new Ordinary Shares at an exercise price of 5.0p with a 2 year life to expiry from today’s date (“Further Consideration Warrants”).

In respect of the Further Consideration Warrants Power Metal will hold an acceleration right, whereby should the volume weighted average Power Metal share price exceed 10.0p for 5 trading days, Power Metal has the right to serve written notice to the Vendors of 14 days to exercise and pay for the Further Consideration Warrants or they may be cancelled 

Conditions and Timing of I ssue of Shares and Warrants

No Consideration Shares, Consideration Warrants and Further Consideration Warrants will be payable or issuable until:

–  The completion of fully signed legal agreements and stock transfer forms by all Vendors; and

–  Receipt of all Botswana regulatory approvals have been received enabling this transaction to be implemented in full.

Lock-In

Unless otherwise agreed in writing with Power Metal the Vendors agree individually to a Lock-In arrangement as outlined below. 

The Vendors agree to hold the Consideration Shares subject to a Lock-In whereby 50% shall be tradable after 6 months from today’s date, with the balancing 50% tradable after 12 months from today’s date.

Conversion of Project Earn-in

Following or concurrent with the issue of Consideration under this Agreement, KKME will issue a further 17,033 KKME shares to Power Metal to extinguish the 40% earn-in to the MFC Project and restore KKME to an effective 100% interest in the MFC Project.  

Kalahari Key Shareholding Analysis 

Reflecting the above the proposed movements in the Kalahari Key capital structure are outlined below:

 

Shares

% KKME

 

Power Metal Original Holding

5,313

20.79

Shares Acquired by Power Metal in KKME

15,002

58.72

Remaining KKME Shareholders

5,235

20.49

Interim Total

25,550

100.00

Shares Issued to Power Metal re Molopo 40% Earn-in

17,033

Power Metal Final KKME Shareholding

37,348

87.71

 

Remaining KKME Shareholders

5,235

12.29

 

Total Kalahari Key Shares in Issue on Completion

42,583

100.00

After the above Power Metal will hold an 87.71% interest in Kalahari Key which will hold a 100% interest in a single project, the MFC Project.

Ongoing Shareholders’ Agreement

Two shareholders will retain their holding in KKME which after completion will amount to a combined 12.29% interest in Kalahari Key.

All remaining shareholders are to sign an agreement to govern the ongoing relationship in relation to their shareholding in Kalahari Key and funding of its operations (“Shareholders’ Agreement”) on completion of the transaction. In this regard a number of elements have been agreed to date, covering the key areas going forward.  These include:

–  Acknowledgement of the Acquisition Agreement and waiver of pre-emption rights

–  Implementation of a Shareholders’ Agreement

–  Operator Status (whereby Power Metal determines the operational and corporate actions of Kalahari Key

–  Kalahari Key Board composition

–  Kalahari Key budgets and cash calls

–  Fund or dilute provisions

–  Drag along terms to ensure all remaining shareholders are required to proceed with material offers from third parties to acquire, or invest in, Kalahari Key

Additional Note:

In the year ended 30 June 2021, Kalahari Key reported a loss of Pula zero (£0) and as at 30 June 2021 reported net assets of Pula 11,688,230 (circa £774,752).

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 – Background

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

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

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

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

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

Power Metal Exploration Programmes Underway/Results Awaited

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

 

Project

Location

POW %

Work Completed or Underway

Results Awaited

Alamo Gold Project

USA

Earn-in to 75%

Excavation of multiple test pits and mapping & sampling.

Field and assay results from on-site work programme.

Athabasca Uranium

Canada

100%

Data compilation across uranium properties

Interpretation results from all Properties complete. Next steps upcoming.

Authier North Lithium

Canada

Earn-in to 100%

Soil & rock sampling completed

Technical Review of exploration results & define next exploration steps.

Ditau Project

Botswana

50%

Drill programme focused on key targets notably drilling of potential carbonatites and targeting rare-earth elements.

Field updates and receipt & review of laboratory assay results.

Kalahari Copper Belt

Botswana

50%

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

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

Molopo Farms

Botswana

53%

Review of recent exploration findings.

Determine next exploration steps and action plan.

Haneti Project

Tanzania

35%

Diamond drill programme completed

Receipt & review of laboratory assay results.

Victoria Goldfields

Australia

49.9%

Diamond drill programme underway

 

Field updates and receipt & review of laboratory assay results.

Paterson Projects

Australia

83.33%

Wallal passive seismic and 2D seismic processing work programme completed.

Review of historical data and target generation for Ripon Hills & Braeside West projects.

Findings from multiple work programmes including final approvals and preparations for planned deep diamond drilling.

Selta Project

Australia

83.33%

Field reconnaissance work complete, which included mapping and sampling.

Finalising data review from field programmes.

 

 

Power Metal Resources #POW – Ditau Camp Project – Drilling Programme Update

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces an update from the Ditau Camp Project (“Ditau” or the “Project”) located in southwest Botswana. Ditau is considered prospective for carbonatite hosted rare-earth element (“REE”), base-metal and possible precious-metal mineralisation.

Ditau is held within a 50/50 Joint Venture (“Kanye Resources” or “Kanye”) with London-listed Kavango Resources plc (LSE:KAV) (“Kavango”). Kavango is the operator.

DITDD004, the second hole in the Ditau drill programme has been successfully completed to a downhole depth of 389m.

DITDD004 was drilled into the i10 Target, a discrete 2.2km diameter magnetic anomaly that Kanye Resources had previously modelled as a possible carbonatite. DITDD004 appears to have intercepted the magnetic anomaly within the drillhole from 293m to 321m downhole depth.

Kanye Resource’s field team has taken preliminary magnetic susceptibility readings on the core recovered from DITDD004. The field team recorded highly elevated magnetic susceptibility readings between 293m and 321m (the “Zone of Interest”) – a combined 28m of core length. These readings from the Zone of Interest coincide with a visibly altered section that Kanye Resources will immediately cut half-core samples from and send to the assay laboratory for multi-element analysis.

The core from DITDD004 contains visible siliceous and haematitic zones, with local pervasive pyrite manifested both as disseminations and in veins. Extensive fracturing (brecciation) is observed throughout the Zone of Interest and elsewhere in the hole.

Power Metal has provided select core images from the Zone of Interest on its website:

https://www.powermetalresources.com/drill-update-ditdd004/

A 1km Audio-Magnetotelluric (“AMT”) survey will be performed over the i10 Target in the coming weeks. Kanye Resources hopes that data from this will help further define the shape and form (morphology) of the Zone of Interest.

Mindea Exploration and Drilling Services Pty (“Mindea”) will now mobilise the diamond core drill rig to Target i1 at Ditau. Target i1 is the largest of three geophysical targets Kanye Resources plans to drill during the current campaign. A further update will be released shortly in respect of this drillhole.

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

“The core extracted from hole DITDD004’s Zone of interest, spanning a combined 28m, is fascinating from a geological perspective and we are eager to see the results from further analysis thereon – including laboratory multi-element assays.

The magnetic modelling undertaken to develop this target appears to be reliable, which is also particularly encouraging for DITDD004 and future drill holes within Ditau.

I look forward to reporting further plans and progress over the coming weeks.”

Operational Summary

–    DITDD004 is the second hole to target the i10 Target

–    The i10 Target is a discrete circular geophysical anomaly which is roughly 2.2km in diameter.

–    Kanye Resources has extensively modelled the i10 Target using various inversions of Aeromagnetic (“AEM”) and AMT geophysical datasets.

–    Kalahari sediment thickness was determined to be 105m based on the first hole drilled (DITDD003) which is consistent with the estimated thickness based on the AMT modelling completed.

–    An additional 16.1 line-km of AMT geophysical surveying is now planned with coverage over multiple drill target areas including:

–    1.0 line-km over the i10 Target;

–    5.5 line-km over the i8 Target; and

–    9.6 line-km over the i1 Target.

The plan is to collect high-frequency AMT profiles over near-surface potential carbonatite targets with the ultimate goal of better resolving the location of breccia zones and intrusive sills/dykes intersected in drillhole DITDD003.

AMT surveys can aid geophysicists and geologists in mapping subsurface geological structures and layers; further identifying potential areas for mineralisation which allows for the refinement of drill targeting.

To date, Kanye Resources has identified 12 geophysical targets at the Ditau Project (i1 through i12), which are believed to be caused by possible carbonatites and/or intrusive complexes that may host carbonatites. Carbonatites account for the primary source of mined rare-earth elements; and REEs are vital component materials in many high-tech industries.

As part of the ongoing exploration programme, Kanye Resources is planning to drill test three geophysical targets (i10, i1 and i8).

GLOSSARY

Siliceous – Rich in silica, with reference to the geology at Ditau, this can be a sign of hydrothermal alteration.

Haematitic – A rock formed principally of iron oxide, often associated with hydrothermal alteration.

Pervasive – The replacement of most, if not all, of the original minerals in the rock by later alteration.

Dissemination – when an ore (or mineral) is present within a rock as small particles distributed uniformly throughout the rock.

Brecciation –  Texture formed of broken angular fragments of a rock, often signalling  intense hydrothermal alteration.

Intrusive Sill – Body of igneous rock forced horizontally into a rock.

Intrusive Dyke – Body of igneous rock forced vertically into a rock.

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

NOTES TO EDITORS

Power Metal Resources PLC – Background

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

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

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

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

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

Power Metal Exploration Programmes Underway/Results Awaited

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

 

Project

Location

POW %

Work Completed or Underway

Results Awaited

Alamo Gold Project

USA

Earn-in to 75%

Excavation of multiple test pits and mapping & sampling.

Field and assay results from on-site work programme.

Athabasca Uranium

Canada

100%

Data compilation across uranium properties

Interpretation results from all Properties complete. Next steps upcoming.

Authier North Lithium

Canada

Earn-in to 100%

Soil & rock sampling completed

Technical Review of exploration results & define next exploration steps.

Ditau Project

Botswana

50%

Drill programme focused on key targets notably drilling of potential carbonatites and targeting rare-earth elements.

Field updates and receipt & review of laboratory assay results.

Kalahari Copper Belt

Botswana

50%

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

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

Molopo Farms

Botswana

53%

Review of recent exploration findings.

Determine next exploration steps and action plan.

Haneti Project

Tanzania

35%

Diamond drill programme completed

Receipt & review of laboratory assay results.

Victoria Goldfields

Australia

49.9%

Diamond drill programme underway

 

Field updates and receipt & review of laboratory assay results.

Paterson Projects

Australia

83.33%

Wallal passive seismic and 2D seismic processing work programme completed.

Review of historical data and target generation for Ripon Hills & Braeside West projects.

Findings from multiple work programmes including final approvals and preparations for planned deep diamond drilling.

Selta Project

Australia

83.33%

Field reconnaissance work complete, which included mapping and sampling.

Finalising data review from field programmes.

 

Power Metal Resources #POW – Extension of Insider Options

Power Metal Resources plc (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announcesan extension of insider options.

On 15 February 2019 Paul Johnson, Chief Executive Officer of the Company was awarded 13,613,929 options to subscribe for new ordinary shares of 0.1 pence each in the Company at an exercise price of 1.0p (“Director Options”).  The Director Options had an original expiry date of 15 February 2022, which was subsequently extended to 15 May 2022.

Paul Johnson is unable to exercise the Director Options as a result of being in a close period due to finalisation of the Company’s interim financial statements for the half year ended 31 March 2022 and due to possession of inside information in relation to the Company’s exploration and corporate work activities.

Under the Director Option agreement clause 3.5 states:

“In the event the Option Holder is in possession of relevant price sensitive information or is restricted from dealing pursuant to the provisions of the Market Abuse Regulations or by any other share dealing code, applicable law or regulation and is thereby precluded from exercising the Options or any part thereof immediately prior to the Final Exercise Date, then the Final Exercise Date shall be deemed to be extended until the date which falls 10 business days after the later of the date on which the Option Holder ceases to be an insider or the date on which the close period or other prohibited period ends or is otherwise no longer prohibited.” 

The Director Options will be automatically extended under clause 3.5 as outlined above.

Recognising the Company’s level of operational activity and anticipated news flow it is considered unlikely that the Director Options will be freely exercisable for some time and therefore the Company has agreed that the Director Options may be exercised up to 31 December 2022.  All other terms of the Director Options remain unchanged.

Related Party Note

The extension of the Director Options held by Paul Johnson as outlined above, has been treated as a related party transaction pursuant to AIM Rule 13 of the AIM Rules for Companies.

Scott Richardson Brown and Edmund Shaw, being the independent Directors for the purposes of the extension of the expiry date of the Director Options held by Paul Johnson consider, having consulted with the Company’s nominated adviser, SP Angel, that the extension of the expiry date to 31 December 2022 of the Director Options held by Paul Johnson to be fair and reasonable insofar as the Shareholders are concerned.

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

NOTES TO EDITORS

Power Metal Resources plc – Background

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

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

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

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

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

Power Metal Exploration Programmes Underway/Results Awaited

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

 

Project

Location

POW %

Work Completed or Underway

Results Awaited

Alamo Gold Project

USA

Earn-in to 75%

Excavation of multiple test pits and mapping & sampling.

Field and assay results from on-site work programme.

Athabasca Uranium

Canada

100%

Data compilation across uranium properties

Interpretation results from all Properties complete. Next steps upcoming.

Authier North Lithium

Canada

Earn-in to 100%

Soil & rock sampling completed

Technical Review of exploration results & define next exploration steps.

Ditau Project

Botswana

50%

Drill programme focused on key targets notably drilling of potential carbonatites and targeting rare-earth elements.

Field updates and receipt & review of laboratory assay results.

Kalahari Copper Belt

Botswana

50%

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

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

Molopo Farms

Botswana

53%

Review of recent exploration findings.

Determine next exploration steps and action plan.

Haneti Project

Tanzania

35%

Diamond drill programme completed

Receipt & review of laboratory assay results.

Victoria Goldfields

Australia

49.9%

Diamond drill programme underway

 

Field updates and receipt & review of laboratory assay results.

Paterson Projects

Australia

83.33%

Wallal passive seismic and 2D seismic processing work programme completed.

Review of historical data and target generation for Ripon Hills & Braeside West projects.

Findings from multiple work programmes including final approvals and preparations for planned deep diamond drilling.

Selta Project

Australia

83.33%

Field reconnaissance work complete, which included mapping and sampling.

Finalising data review from field programmes.

 

Power Metal Resources #POW – First Class Metals Update

 

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio   notes the update (the “Update”) released by First Class Metals PLC (“First Class”) in which Power Metal has a circa 36.3% interest.

The Update outlines the receipt of an exploration permit for the Pickle Lake area and confirmation that earn-in joint venture partner Palladium One (TSXV:PDM) is to launch a drill programme at Pickle Lake.

The Update may be viewed through the following link:

https://www.firstclassmetalsplc.com/mining-news

First Class Metals PLC is a minerals exploration company focused on proving and developing the significant potential of their flagship property North Hemlo which includes the Pickle Lake Palladium One JV area as well as systematic exploration of the Esa, Sugar Cube, McKellar, Magical, Enable and Coco East projects, in total 180km2 in the Hemlo – Harte gold mines region in the Western portion of the Wawa-Abitibi Gold Belt of Ontario, Canada. 

Geologically the claim blocks are located within the Schreiber-Hemlo Greenstone Belt with target minerals gold, silver, base and battery metals in typical Archaean / Hemlo style mineralised settings. First Class is seeking a London Listing prior to end Q2 2022.

 

Power Metal Resources #POW – CEO Interview May 2022

Alan Green talks to Power Metal Resources CEO Paul Johnson. Paul airs his thoughts on the currently very poor markets, before looking at the current M&A activity in the market, including yesterday’s announcement from Arc Minerals re the copper-cobalt joint venture with Anglo American. Paul then gives a whistle stop overview of POW’s flagship projects around the world, before flagging up some near term milestones for investors to look for. We finish with an overview of the upcoming UK Investor show, where members of the POW board will be available to speak to investors.

Power Metal Resources #POW – FDR Australia – Corporate Update

 

Power Metal Resources plc (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces a corporate update for its 83.33% owned subsidiary First Development Resources Limited (“FDR UK”).

ACQUISITION OF PARDOO RESOURCES PTY LIMITED

Background

Power Metal has signed an Agreement (“Agreement”) for the 100% acquisition of Pardoo Resources Pty Limited (“Pardoo”) by FDR UK.

Pardoo is an Australian resource exploration project holding company which currently holds projects in trust for First Development Resources Pty Limited (“FDR Australia”), a wholly owned Australian subsidiary of FDR UK.

The projects held in trust are in the Paterson Province of Western Australia (the Paterson “Interests” or “Projects”) and include:

–  Wallal West 1 Project (E45/5853) a granted exploration licence which covers 96km2;

–  Wallal West 2 Project (E45/5880) a granted exploration licence covering 86km2 and;

–  Braeside West Project (E45/5854) a granted exploration licence covering 137km2.

FDR UK acquired a 100% interest in FDR Australia on 29 October 2021 and the announcement in respect of the acquisition may be viewed through the following link:

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

The acquisition of Pardoo expedites the corporate restructuring of FDR UK, its subsidiaries & interests and allows FDR UK to avoid a costly and time-consuming inter-company transfer of strategically important exploration licences which are now within the FDR UK group holding company structure.

Pardoo Acquisition Terms

For the acquisition of the entire share capital of Pardoo by FDR UK, the consideration payable to the shareholders of Pardoo (the “Vendors”) is as follows:

–  FDR UK will pay consideration of AU$7,000 (£3,839) in cash

–  The Vendors will receive 300,000 new FDR UK Ordinary Shares at an issue price of 6.67 pence per share (a value of £20,010 and post share issue this represents 0.66% of FDR UK issued share capital).

The AU$7,000 cash payment is to cover costs associated with financial accounting to prepare Pardoo for this transaction and on completion of the acquisition Pardoo will carry no outstanding liabilities.

The Vendors and their professional licencing and geological teams will continue to provide ongoing assistance and work with FDR UK post completion of the acquisition.

Following completion of this transaction, Power Metal will hold 82.78% of FDR UK.

In the nine months ended 30 April 2022 Pardoo had a net loss of AU$96 and at 30 April 2022 Pardoo had net assets of AU$4.

EXERCISE OF RIPON HILLS OPTION

Background

The original acquisition of FDR Australia was announced on 29 October 2021 and this announcement may be viewed through the link below:

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

Option Exercise Terms

Within the above announcement were the terms for an option (the “Option”) to acquire the Ripon Hills Project (“Ripon Hills”) and an extract covering this is provided below:

“Ripon Hills E45/5088 Option 

FDR UK may, at any time within 12 months of the date of signing of this Agreement, acquire E45/5088 (Ripon Hills) with consideration comprising a payment of A$20,000 (to be paid as 398,036 Power Metal Ordinary Shares at an issue price of 2.75p and 398,036 Power Metal warrants at an exercise price of 4.5p and on the same basis as the Initial Consideration Warrants above) to Great Sandy Pty Limited (“Great Sandy”), current holder of the licence. Upon written notice of exercise and payment, Great Sandy will transfer E45/5088 to RH Resources Pty Ltd (which will become a wholly owned subsidiary of FDR Australia).” 

Power Metal and FDR UK have now exercised the above Option and are working with Great Sandy to complete relevant transfer documentation. As a result Power Metal will issue Great Sandy 398,036 new ordinary shares of 0.1p each at a price of 2.75p (“Ripon Hills Option Shares”) and 398,036 Power Metal Warrants at an exercise price of 4.5p. 

The latest exploration update in respect of Ripon Hills may be reviewed in the Company’s announcement of 21 February 2022, including details of a desktop review currently underway:

 

https://www.londonstockexchange.com/news-article/POW/replacement-paterson-project-exploration-update/15337136

 

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

“It’s great to be able to expedite the restructuring of the FDR UK interests and saves us some time and cost.  This means we can move forward more expeditiously with this exciting venture. We continue the administrative processes for the planned listing of FDR UK on the UK capital markets.”

Tristan Pottas Chief Executive Officer of First Development Resources Ltd commented:

“Progress at First Development Resources continues, including exploration work programmes and corporate activities in respect of the planned London listing of FDR UK. We intend to push on at pace.

 From a corporate perspective, the acquisition of Pardoo announced today enables us to further accelerate our business plans which is important.  Also, our work to date has demonstrated the potential opportunity offered by Ripon Hills and we are delighted that the Option has been exercised.”

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 398,036 Ripon Hills Option Shares to be admitted to trading on AIM which is expected to occur on or around 18 May 2022 (“Admission”). The Ripon Hills Option 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 1,469,667,740 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.

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.

Power Metal Resources plc (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces a corporate update for its 83.33% owned subsidiary First Development Resources Limited (“FDR UK”).

ACQUISITION OF PARDOO RESOURCES PTY LIMITED

Background

Power Metal has signed an Agreement (“Agreement”) for the 100% acquisition of Pardoo Resources Pty Limited (“Pardoo”) by FDR UK.

Pardoo is an Australian resource exploration project holding company which currently holds projects in trust for First Development Resources Pty Limited (“FDR Australia”), a wholly owned Australian subsidiary of FDR UK.

The projects held in trust are in the Paterson Province of Western Australia (the Paterson “Interests” or “Projects”) and include:

–  Wallal West 1 Project (E45/5853) a granted exploration licence which covers 96km2;

–  Wallal West 2 Project (E45/5880) a granted exploration licence covering 86km2 and;

–  Braeside West Project (E45/5854) a granted exploration licence covering 137km2.

FDR UK acquired a 100% interest in FDR Australia on 29 October 2021 and the announcement in respect of the acquisition may be viewed through the following link:

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

The acquisition of Pardoo expedites the corporate restructuring of FDR UK, its subsidiaries & interests and allows FDR UK to avoid a costly and time-consuming inter-company transfer of strategically important exploration licences which are now within the FDR UK group holding company structure.

Pardoo Acquisition Terms

For the acquisition of the entire share capital of Pardoo by FDR UK, the consideration payable to the shareholders of Pardoo (the “Vendors”) is as follows:

–  FDR UK will pay consideration of AU$7,000 (£3,839) in cash

–  The Vendors will receive 300,000 new FDR UK Ordinary Shares at an issue price of 6.67 pence per share (a value of £20,010 and post share issue this represents 0.66% of FDR UK issued share capital).

The AU$7,000 cash payment is to cover costs associated with financial accounting to prepare Pardoo for this transaction and on completion of the acquisition Pardoo will carry no outstanding liabilities.

The Vendors and their professional licencing and geological teams will continue to provide ongoing assistance and work with FDR UK post completion of the acquisition.

Following completion of this transaction, Power Metal will hold 82.78% of FDR UK.

In the nine months ended 30 April 2022 Pardoo had a net loss of AU$96 and at 30 April 2022 Pardoo had net assets of AU$4.

EXERCISE OF RIPON HILLS OPTION

Background

The original acquisition of FDR Australia was announced on 29 October 2021 and this announcement may be viewed through the link below:

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

Option Exercise Terms

Within the above announcement were the terms for an option (the “Option”) to acquire the Ripon Hills Project (“Ripon Hills”) and an extract covering this is provided below:

“Ripon Hills E45/5088 Option

 

FDR UK may, at any time within 12 months of the date of signing of this Agreement, acquire E45/5088 (Ripon Hills) with consideration comprising a payment of A$20,000 (to be paid as 398,036 Power Metal Ordinary Shares at an issue price of 2.75p and 398,036 Power Metal warrants at an exercise price of 4.5p and on the same basis as the Initial Consideration Warrants above) to Great Sandy Pty Limited (“Great Sandy”), current holder of the licence. Upon written notice of exercise and payment, Great Sandy will transfer E45/5088 to RH Resources Pty Ltd (which will become a wholly owned subsidiary of FDR Australia).”

 

Power Metal and FDR UK have now exercised the above Option and are working with Great Sandy to complete relevant transfer documentation. As a result Power Metal will issue Great Sandy 398,036 new ordinary shares of 0.1p each at a price of 2.75p (“Ripon Hills Option Shares”) and 398,036 Power Metal Warrants at an exercise price of 4.5p.

 

The latest exploration update in respect of Ripon Hills may be reviewed in the Company’s announcement of 21 February 2022, including details of a desktop review currently underway:

 

https://www.londonstockexchange.com/news-article/POW/replacement-paterson-project-exploration-update/15337136

 

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

“It’s great to be able to expedite the restructuring of the FDR UK interests and saves us some time and cost.  This means we can move forward more expeditiously with this exciting venture. We continue the administrative processes for the planned listing of FDR UK on the UK capital markets.”

Tristan Pottas Chief Executive Officer of First Development Resources Ltd commented:

“Progress at First Development Resources continues, including exploration work programmes and corporate activities in respect of the planned London listing of FDR UK. We intend to push on at pace.

 From a corporate perspective, the acquisition of Pardoo announced today enables us to further accelerate our business plans which is important.  Also, our work to date has demonstrated the potential opportunity offered by Ripon Hills and we are delighted that the Option has been exercised.”

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 398,036 Ripon Hills Option Shares to be admitted to trading on AIM which is expected to occur on or around 18 May 2022 (“Admission”). The Ripon Hills Option 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 1,469,667,740 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.

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.

#POW Power Metal Resources – Ditau Project – Exploration Programme Expansion

Power Metal Resources plc (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces an update from the Ditau Camp Project (“Ditau” or the “Project”) located in southwest Botswana which is prospective for carbonatite hosted rare-earth element (“REE”) and base-metal mineralisation. Ditau is held within a 50/50 Joint Venture (“Kanye Resources”) with London-listed Kavango Resources plc (LSE:KAV) (“Kavango”). Kavango is the operator.

Following completion of drillhole DITDD003, which was drilled into the i10 target, Power Metal in conjunction with Kavango have decided to expand the ongoing exploration programme. Initial observations in respect of DITDD03 were announced on 29 April 2022 and can be viewed at the follow link:

https://www.londonstockexchange.com/news-article/POW/ditau-camp-project-botswana-drilling-update/15432783

The expanded exploration programme will include 16.1 line-km of Audio-Magnetotelluric (“AMT”) geophysics surveys over various target areas.

DITDD003 is the first of six planned exploration drillholes to be completed at the Ditau Project as part of the ongoing drilling campaign. Based on results achieved thus far, Kanye Resources has confidence in the utility of its new AMT inversion modelling introduced this year and believes the expanded geophysical surveys will enable it to further optimise the location of planned drill collar locations.

Kanye Resources also announces the commencement of drilling of drillhole DITDD004 which is also targeting the i10 Target geophysical anomaly.

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

“It’s great to see the exploration programme at Ditau moving forward at pace with the second drill hole now underway. The Ditau Project represents a significant exploration opportunity, with a district-scale land holding believed to be prospective for rare-earth element mineralisation. This exploration comes at a critical time when this commodity group is in great demand, particularly from stable mining jurisdictions.

The work undertaken thus far, and the building knowledge we are collating, is highly valuable and I look forward to providing further updates to the market as additional developments occur.”

 

Operational Summary

–  Commencement of DITDD004, the second hole to target the i10 Target

–  The i10 Target is a discrete circular geophysical anomaly which is roughly 2.2km in diameter.

–  Kanye modelled the i10 Target using inversions of Aeromagnetic (“AEM”) combined with its interpretation of limited existing AMT data.

–  Kalahari sediment thickness was determined to be 105m based on the first hole drilled (DITDD003) which is consistent with the estimated thickness based on the AMT modelling completed.

–  An additional 16.1 line-km of AMT geophysical surveying is now planned with coverage over multiple drill target areas including:

–  1 line-km over the i10 Target;

–  5.5 line-km over the i8 Target; and

–  9.6 line-km over the i1 Target.

 

The plan is to collect high-frequency AMT profiles over near-surface potential carbonatite targets with the ultimate goal of better resolving the location of breccia zones and intrusive sills/dykes intersected in drillhole DITDD003. AMT surveys can aid geophysicists and geologists in mapping subsurface geological structures and layers; further identifying potential areas for mineralisation which allows for the refinement of drill targeting.

To date 12 targets from geophysics have been identified at the Ditau Project (i1 through i12) which Kanye believes could be carbonatites and/or intrusive complexes that may host carbonatites pipes. Carbonatites account for the primary source of mined rare-earth elements; and REEs are vital component materials in many high-tech industries.

As part of the ongoing exploration programme, Kanye is planning to drill test three geophysical targets (i10, i1 and i8).

 

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

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