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Power Metal Resources #POW – Business Operational Update

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

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

“The team at Power Metal are intent on building a great company for our shareholders.  Through the past two years, as evidenced by our market updates, we have built a global resource exploration and development company, with precious, base, and strategic metal interests in North America, Africa, and Australia.

We have multiple workstreams underway, seeking our dual objectives of large scale metal discoveries and corporate activities to build our “balance sheet” through vend outs of certain interests into their own (mainly listed) vehicles in which Power Metal holds a significant stake.

As you can imagine, across this diverse portfolio there is a substantial amount of work to be done. This is a practical challenge for a small team and to ensure that we manage the work effectively the company has recently expanded its operational capability with new team members in operational management, public & investor relations, and new business development.

We seek scale and aggressive growth underpinned by financial stability leading to a much larger business than we are today. As we move along this targeted pathway we intend to efficiently inform shareholders of progress and you will see in the table below the latest position on each of our projects.

We are a fast moving business and all plans are subject to change, depending on many factors including market conditions, exploration success, and business financial strength.  Notwithstanding this our in-built diversification and underlying strong financial position protects and shields us from volatility external to the business and enables us to confidently push ahead with our exploration and corporate activities.”

The table below outlines the latest status of each project in the current Power Metal active portfolio.  For further project information readers should review the latest Power Metal presentation which may be accessed on the Company’s website through the following link:

https://www.powermetalresources.com/p/193/presentations

PROJECT

LATEST POSITION

AUSTRALIA

Australian Gold JV

Gold

(POW 49.9%)

Initial Public Offer (“IPO”) process has formally commenced with the appointment of legal counsel in Canada. The intention is to list certain core assets of Red Rock Australasia (Pty) Ltd (the JV holding company) by IPO in the Canadian capital markets. Shareholders should note that there can be no certainty that the proposed IPO of certain core assets of Red Rock Australasia (Pty) Ltd will be successful, further updates will be made to shareholders as appropriate.

Following the grant of first three licenses, as announced on 2ndFebruary 2021, a further seven applications are at an advanced stage of processing.

Application made for a new exploration license covering 227 sq km (EL 45/5859) in Western Australia, which will be subject to a ballot between RRAL and Rumble Resources Ltd (ASX:RTR).

BOTSWANA

Kanye Resources

Copper, Silver, Rare Earths

(POW 50%)

Kanye Resources Plc  now formed in the UK, and Kanye Resources Pty Ltd in Botswana.  This is the holding company company structure for a planned listing of Kanye Resources on a recognised stock exchange.

Kanye Resources includes the Ditau Project and the Ghanzi South (Kalahari Copper Belt) Project, and the exploration status of each project is outlined below.

Ditau Project

An exploration camp has been established and the field team has continued taking soil samples and conducting ground magnetic surveys. A new senior geologist has been recruited to oversee operations.

Data is currently being analysed on the I10 target. Results from this are expected to guide future exploration of the remaining 9 potential carbonatite targets.

Ghanzi South (Kalahari Copper Belt) Project

Intensified soil sampling, airborne electromagnetic survey and magnetic geophysics survey, all underway.

Sampling and surveys focused on key target areas and seeking delineation of key drill targets.

Environmental Management Plan being finalised, which following approval will allow drilling to be undertaken.

BOTSWANA

Molopo Farms Complex

Nickel, Copper, PGMs

(POW with Economic Interest up to 50.96%)

Following completion of two drill holes, drill core has been cut and inspected. 

Drill core samples sent to South African accredited laboratory and assay results awaited.  Samples also sent to Witswatersrand University for mineralogical and thin section analysis and results awaited.

Third drill hole to be commenced shortly and ongoing technical review underway.

CANADA

Hemlo/Schreiber

Gold, Base Metals

(POW 100%)

Acquisition of seven projects now complete and comprising exploration Claim packages strategically located across the Hemlo/Schreiber greenstone belt.

Preliminary exploration work planned includes remote sensing data interpretation and ground based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.

CANADA

Silver Peak

Silver

(POW Earn-in to 30%)

Recommencement of exploration work including completion of the planned drill programme following the snow thaw in Spring 2021 targeting high-grade silver and  to establish vein continuity.

Currently working with our partners to review corporate options including a potential listing of the Silver Peak project on a recognised stock exchange.

THE DRC

Kisinka Project

Copper, Cobalt

(POW 70%)

 

Ground magnetics completed and induced polarisation to begin over 6.8 kilometre copper-cobalt anomaly nearing completion. Following the completion of fieldwork, and interpretation of findings, likely next step will be exploration drilling of key targets.

Application to secure a 25 year Permis d’Exploitation (production licence) is progressing well and in the final stages of processing.

TANZANIA

Haneti Project

Nickel, PGMs, Copper, Gold, Lithium

(POW 35%)

Following completion of 1,965 metres of Rotary Air Blast drilling, 776 three metre composite samples have been delivered to SGS Tanzania, an accredited assay laboratory in Tanzania.

Samples being analysed using multi-element Aqua Regia Digestion/ICP-OES* method with 13 select samples to also be tested using Fire Assay for gold, platinum, and palladium. 

Assay results expected shortly and the findings will guide next stage exploration.

 

USA

Alamo Gold Project

Gold

(POW Earn-in up to 75%)

Ground exploration programme (as announced 11 December 2020) now completed and detailed operational report received by Power Metal.

Full technical review underway to determine next exploration and commercial steps.

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

Alan Green presents a Hemlo special on his weekly Stockbox Media Research talk

Alan Green presents a Hemlo special research talk, discussing the Schreiber Hemlo mining belt on the North Coast of Lake Superior, N Ontario, Canada. Alan looks at the activities of incumbent miners operating in the area, and also that of recent entrants Panther Metals #PALM and Power Metal Resources #POW.

Power Metal Resources #POW – Posting of documents to shareholders and notice of Annual General Meeting

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company  announces that the Annual Report and Accounts for the year ended 30 September 2020 and Notice of Annual General Meeting were posted to shareholders today.

The Company’s Annual General Meeting (“AGM”) will take place at 11.00 am on 30 March 2021 at Abbey House, 282 Farnborough Road, Farnborough, Hampshire, GU14 7NA.  Documentation in respect of the AGM may be viewed on the Company’s website through the following link:

https://www.powermetalresources.com/p/184/shareholder-circulars 

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

 

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

 

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

 

 

Notes to Editors:

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

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

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

Power Metal Resources #POW – Exercise of Ontario Options – Magical and Enable Properties

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce that following due diligence work the Company has exercised its option to acquire both the Magical Property (“Magical”) and Enable Property (“Enable” together the “Properties”) located on the prospective Schreiber-Hemlo Greenstone Belt in north-western Ontario, Canada.

These are the final two of four gold exploration properties upon which the Company signed an exclusive option to acquire a 100% interest (as announced 26 January 2021) and follows the McKellar option exercise and the Coco East option exercise which were announced on 18th and  24th February 2021 respectively.

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

“The exercise of our options over the Magical and Enable properties concludes Power Metals’ current acquisition strategy over the Schreiber-Hemlo Greenstone Belt in Ontario. Power’s portfolio of exploration properties provides us the opportunity to build value, within a 120km strike length, of a prolific exploration belt.

We will now commence a phase of desk-based remote sensing targeting and exploration planning with a view to being in a position to initiate ground reconnaissance and target follow-up work after the snow thaw.  We look forward to providing further updates as plans progress.”

MAGICAL PROPERTY OVERVIEW

–  Magical is located 9km northwest of Barrick Gold Corporation’s Hemlo Mine which has produced more than 21Moz gold and has been operating continuously for more than 30 years1.

–  The property is located upon the North Limb of the Schreiber-Hemlo Greenstone Belt, the property is located at the prospective contact between the intrusive Gowan Lake Pluton and metavolcanic/metasedimentary rock packages, with a similar geological setting to the Hemlo deposit. Magical offers potential for orogenic style gold mineralisation.

–  The regional geophysics data shows a north trending regional scale magnetic structure intersects the intrusion within the centre of the property, defining a preliminary target for investigation.

–  Magical is largely unexplored apart from the easternmost Claim cell where, in 1995, Hemlo Gold Mines Inc drilled an induced polarisation (“IP”) geophysics anomaly. Diamond drill hole V95-2 reportedly intersected a 7m zone of silicification containing sericite and sulphides and 12.6m of feldspar porphyry with disseminated pyrite. 

–  Magical directly abuts and covers the westward strike extension of the Canadian listed junior Hemlo Explorers Inc (TSX-V: HMLO) North Limb Property2 .

MAGICAL CLAIM STATUS

–  The Magical property consists of a total of 14 Single Cell Mining Claims (“Claims”) covering an area of circa 3.0km2.

–  Claims are valid through to 27 July 2022 upon which they can be renewed on an annual basis. For renewal the Magical Claims will require an aggregate work spend of CAD$5,600 (circa £3,145) prior to the individual Claim renewal dates. 

ENABLE PROPERTY OVERVIEW

–  The Enable property is located on the western part of the Schreiber-Hemlo Greenstone Belt, at the contact of metavolcanic and volcano-sedimentary rock packages with the Terrace Bay Batholith. 

–  On a regional scale the Terrace Bay Batholith contact is spatially associated with at least 28 documented gold showings including the Northshore Property which has historical resources of 1.2Moz Au3. Northshore has recently been subject to open pit mining studies and is currently held by Canadian Securities Exchange listed Ready Set Gold Corp. (CSE:RDY).

–  Overburden cover has been attributed to the reason the Enable portion of the batholith contact remains unexplored. This presents an opportunity to discover new gold mineralisation utilising modern exploration technologies.

–  Access to the property is good, being 4km north of the town and railway stop of Terrace Bay and with the Trans-Canada Highway running within 200m of the eastern boundary. The centre of the property is crossed by a public highway with logging roads and a lake providing access to the western part of the property.

ENABLE CLAIM STATUS

–  The Enable property consists of a total of 41 Claims covering an area of circa 8.7km2.

–  Claims are valid through to 25 July 2022 upon which they can be renewed on an annual basis. For renewal the Enable Claims will require an aggregate work spend of CAD$16,400 (circa £9,210) prior to the individual Claim renewal dates.

ACQUISITION TERMS

The vendors of the Option (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was the Vendor of the Hemlo North Gold Project acquired by Power Metal as announced on 21 January 2021.

In exercising the Option to acquire a 100% interest in the Magical and Enable properties POW will make the following cash and equity consideration:

Property Name

Cash (CAD$)

POW Shares (CAD$)

Note: POW Acquisition Shares to be issued

Total Consideration

(CAD$)

Magical

20,000

20,000

384,000

40,000

Enable

30,000

30,000

576,000

60,000

The POW shares payable as consideration are new ordinary shares of 0.1p each in the Company at an issue price of 3.0 pence per share (“Acquisition Shares”).   The cash costs of the acquisition are funded from Power Metal’s existing Canadian Dollar cash account.

The Vendors retain a 2% net smelter royalty (“NSR”) on each property, Power Metal may purchase 1% of each NSR, at any time, by making a cash payment to the Vendors of CAD$500,000.

The Vendors will continue to work with Power Metal in the local management of any new properties acquired through this transaction; the development and implementation of exploration plans and the identification of further new opportunities. 

EXPLORATION PLAN

–  Ongoing exploration spend will be at the discretion of Power Metal as the 100% owner of the properties. 

–  Preliminary exploration work is expected to include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.

–  The Province of Ontario has an established mineral exploration industry with a large number of local exploration contractors that could be engaged to fulfill the planned work on a cost-effective basis.

Admission and Total Voting Rights

Application will be made for the 960,000 Acquisition Shares to be admitted to trading on AIM, which is expected to occur on or around 4 March 2021 (“Admission”). The Acquisition 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 1,136,877,930 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.

Reference Sources

1: Barrick Gold Corporation, Hemlo Project webpage:  https://www.barrick.com/English/operations/hemlo/default.aspx

2: Hemlo Explorers Inc (TSX-V: HMLO) North Limb Property webpage: https://hemloexplorers.ca/projects/hemlo-north-limb/overview/  

3: Mineral resource estimate: Technical Report on the Mineral Resources of the Northshore Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada with an effective date of 28 April 2014, by Giroux Consultants Ltd. and Minorex Consulting Limited.

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

 

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

 

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

Stockbox Media interview with Power Metal Resources #POW CEO Paul Johnson

Stockbox Media interview Power Metal Resources #POW CEO Paul Johnson. The projects are discussed, and Paul shares his excitement about the scale of opportunity with the #POW portfolio.

 

Power Metal Resources #POW raises £18,992 from warrant exercises

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce it has received notices to exercise warrants over 2,199,200 new ordinary shares of 0.1 pence each in the Company (“Warrant Shares”).

The Warrant Shares are being issued pursuant to the exercise of 1,199,200 warrants at an exercise price of 1.0 pence per ordinary share of 0.1 pence each in the Company and the exercise of 1,000,000 warrants at an exercise price of 0.7p pence per ordinary share of 0.1 pence each in the Company.

Subscription monies of £18,992 have been received by Power Metal in respect of these exercises.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 2,199,200 Warrant Shares to be admitted to trading on AIM which is expected to occur on or around 3 March 2021 (“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 1,135,917,930 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.

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

 

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

 

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

Power Metal Resources #POW – Exercise of Ontario Option – Coco East Property

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce that following due diligence work the Company has exercised its option to acquire the Coco East Property (“Coco East” or the “Property”) located on the prospective Schreiber-Hemlo Greenstone Belt in north-western Ontario, Canada.

Coco East is the second of four gold exploration properties upon which the Company has an exclusive option to acquire a 100% interest, (the “Option”) (as announced 26 January 2021) and follows the McKellar option exercise which was announced 18 February 2021.

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

“Exercising the Option over the Coco East Property further strengthens Power Metals’ landholding in Ontario, following directly on from the acquisition of the McKellar Property which was announced last week. 

Coco East is sited upon the eastern end of the Big Duck Lake Porphyry intrusive which is associated with over twenty known gold and/or base metal occurrences including significant gold intersections which were drilled in a neighbouring property during 2017. The property is also directly east of Superior Lake Resources’ Pick Lake / Winston Lake Zinc Project which is currently advancing towards a high grade zinc mine restart.

We are continuing our due diligence review of the remaining two option properties and will provide a further update in due course.” 

COCO EAST PROPERTY OVERVIEW

  • Located upon the Schreiber-Hemlo Greenstone Belt, Coco East sits at the eastern end of a 4.5km long by 1km wide quartz feldspar porphyry intrusion (the ‘Big Duck Lake Porphyry’) that can be associated with up to twenty-two known gold and/or base metal occurrences.
  • Geology of the property consists of  intrusive porphyry, ultramafic, metavolcanic and metasedimentary rock packages prospective for both gold and volcanogenic massive sulphide (“VMS”) style copper-lead-zinc-silver mineralisation.
  • Regional magnetics survey data shows distinct areas of interest within the property including magnetic highs associated with the eastern end of the Big Duck Porphyry and magnetic ridges which may be indicative of structural faulting and deformation associated with the intrusive event.
  • Located approximately 3.5km east of the Coco-Estelle Deposit where diamond drilling during 2017 intersected significant intervals of gold mineralisation including 11m @ 1.96g/t Au from 42m and  5m @ 5.9g/t Au from 63m.1  This is part of the Big Duck Project held by Canada listed CBLT Inc (TSX-V:CBLT) which abuts the Coco western boundary.
  • Also 8.4km east of Australian listed Superior Lake Resources (ASX:SUP) high-grade Pick Lake / Winston Lake Zinc Project which has a Resource of 2.35 Mt at 17.7% Zn, 0.9% Cu, 0.38 g/t Au and 34 g/t Ag and for which a mine re-start Bankable Feasibility Study was published in August 2019. 2
  • Three historical drill holes are known to exist within the centre the property (on three Claims), these were drilled by Falconbridge Copper Corporation in 1984. Drill hole BD6 is reported to have assayed up to 1.74g/t Au although the exact nature of this intersection has yet to be verified by obtaining the historical core logs.  The remainder of the property is considered under explored.
  • Situated approximately 20 km due north of the town of Schreiber, Ontario on the Trans-Canada highway. Access to the property is via an old logging road and all-terrain vehicle (“ATV”) trails. Big Duck Lake is located on the western side of the property.

COCO EAST CLAIM STATUS

–  Consists of a total of 30 Single Cell Mining Claims (“Claims”) covering a total area of circa 6.4km2. 

–  Claims are valid through to 20 August 2022 upon which they can be renewed on an annual basis. For renewal the Coco East Claims will require an aggregate work spend of CAD$12,000 (circa £6,912) prior to the individual Claim renewal dates. 

ACQUISITION TERMS

The vendors of the Option (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was the Vendor of the Hemlo North Gold Project acquired by Power Metal as announced on 21 January 2021.

In exercising the Option to acquire a 100% interest in the Coco East Property POW will make the following cash and equity consideration:

Property Name

Cash (CAD$)

POW Shares (CAD$)

Note: POW Acquisition Shares to be issued

Total Consideration

(CAD$)

Coco East

30,000

30,000

576,000

60,000

The POW shares payable as consideration are new ordinary shares of 0.1p each in the Company at an issue price of 3.0 pence per share (“Acquisition Shares”).  The cash costs of the acquisition are funded from Power Metal’s existing Canadian Dollar cash account.

The Vendors retain a 2% net smelter royalty (“NSR”) on Coco East,  Power Metal may purchase 1% of the NSR, at any time, by making a cash payment to the Vendors of CAD$500,000. 

The Vendors will continue to work with Power Metal in the local management of any new properties acquired through this transaction; the development and implementation of exploration plans and the identification of further new opportunities.

EXPLORATION PLAN

–    Ongoing exploration spend will be at the discretion of Power Metal as the 100% owner of Coco East.

–    Preliminary exploration work is expected to include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.

–   The Province of Ontario has an established mineral exploration industry with a large number of local exploration contractors that could be engaged to fulfill the planned work on a cost-effective basis.

Admission And Total Voting Rights

Application will be made for the 576,000 Acquisition Shares to be admitted to trading on AIM, which is expected to occur on or around 2 March 2021 (“Admission”). The Acquisition 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 1,133,718,730 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.

Reference Sources

1: GTA Resources and Mining Inc announcement, 29 January 2018 https://www.gtaresources.com/assets/jan-29-2018-big-duck-final-re-run-gold-sample.pdf

2: Superior Lake Resources Pick Lake / Winston Lake Zinc Project: https://superiorlake.com.au/pick-lake-winston-lake-zinc-project/#:~:text=The%20Project%20is%20a%20high,ASX%20announcement%2028%20August%202019

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

 

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

 

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

Power Metal Resources #POW – Audited Results for the Year Ended 30 September 2020

Power Metal Resources plc (LON:POW), the AIM listed mineral resources exploration and development company, is pleased to announce its consolidated audited results for the year ended 30 September 2020 for the Company and its subsidiaries, Cobalt Blue Holdings (“CBH”), Regent Resources Interests Corp. (“RRIC”), and Power Metal Resources SA, (“PMR”), (together the “Group”).

Highlights from the year under review:

Operational

  • A strategic Australian gold joint venture was formed with Red Rock Resources plc (LON:RRR), with Power Metal Resources holding 49.9%.  By year end the joint venture holding company, Red Rock Resources Australasia (Pty) Limited (“RRAL”) had lodged 12 licence applications covering some 2,188 km2 in the Victoria goldfields region. Various technical work was completed in the year including project reports for 11 of the licence applications and a National Instrument 43-101 report for 8 of the licence applications as a group. A new office was secured in Ballarat town and an exploration manager appointed to the joint venture company;
  • Following completion of ground geophysics in 2019 and the delineation of key drill targets, Power Metal Resources elected on 31 December 2019 to earn in to a 40% project holding at the Molopo Farms Complex Project, Botswana by expending US$500,000 on exploration, notably key target drilling in 2020.  A maiden drill programme commenced in October 2020;
  • A new strategic joint venture was formed between Power Metal Resources and Kavango Resources Plc (LON:KAV) in respect of the Kalahari Copper Belt and Ditau Camp Projects in Botswana, with each party having a 50% interest;
  • Review work was undertaken in respect of the exploration and commercialisation options in respect of the Cobalt Blue nickel/cobalt project in Cameroon. No formal conclusions as to the way forward were reached in the financial year, with deliberations continuing post year end and leading to a decision to impair the value of the of the Cameroon project in full (£970,000);
  • A new earn in agreement was formed over the Silver Peak Project, including a former working silver mine, in British Columbia, Canada.  Due diligence programme sampling demonstrated bonanza grade silver from channel sampling;
  • A pitting, sampling and mapping work programme was undertaken successfully at the Kisinka Project in The Democratic Republic of the Congo. X-ray fluorescence testing of the samples confirmed the presence of copper, with samples dispatched to South Africa for analysis and results received post year end.  The results announced in November 2020 demonstrated high grade copper and cobalt values; 
  • Power Metal Resources increased its interest in the Haneti Nickel Project by 10% to 35% in the financial year and worked with joint venture partner AIM Listed Katoro Gold plc (LON:KAT) to plan for commencement of maiden drilling for nickel sulphide and Platinum Group Metals (“PGMs”) at the Project;
  • An agreement was signed in respect of the Alamo Gold Project in Arizona USA which saw Power Metal Resources acquire an option to earn in to a maximum 75% interest in the project.  An initial reconnaissance survey conducted following the acquisition identified additional prospective areas which were pegged and added to existing claims, increasing the project footprint;
  • A further strengthening of the Board saw Edmund Shaw, an experienced City finance professional, join the Board as Non-executive Director in February 2020;
  • At the year-end 30 September 2020 the Company held a private and listed shares/warrants portfolio worth circa £1,481,000, including a £415,000 fair value uplift in the valuation of the portfolio of listed investments in other junior natural resource companies held by the Company over the course of the year;
  • · At the year end the Company held cash in GBP, USD, AUD and CAD of £913,000 in GBP equivalent.

Financial

  • Loss for the year to 30 September 2020 of £1.4 million (2019: £1.6 million);
  • Pre non-controlling interest total equity of £3.6 million at the year-end (2019: £1.8 million); and
  • Raised £1.7 million (before issue costs) in new equity financing during the financial year, from a combination of new and existing shareholders, including the Directors, and an additional £266,000 of cash received by the Company during the year from exercises of Power Metal share warrants.

Post-year end

Expansion of exploration and activity across the Company’s project portfolio including:

  • Drilling programme commencement at the Molopo Farms Complex Project in Botswana (announced 15 October 2020), the Silver Peak Project in Canada (announced 10 November 2020) and the Haneti Nickel Project in Tanzania (announced 30 December 2020);
  • Next stage exploration programmes commenced at the Kalahari Copper Belt and Ditau Projects in Botswana, the Alamo Gold Project in Arizona, USA and the Kisinka Project in The Democratic Republic of the Congo (“DRC”);
  • Continuation of corporate activities since the year end with participation in a rights issue for Kalahari Key Mineral Exploration (Pty) Limited and expansion of the Australian Gold Joint Venture with an application to increase the JV footprint by a further 148 km2 surrounding the Ballarat mine area; and
  • Option agreement signed in January 2021 providing 60 business-days for due diligence which if successful would lead to the acquisition of First Development Resources Pty Limited, a private Australian company with copper-gold exploration interests in Paterson Province, Australia.
  • Agreement signed by Power Metal Resources in January 2021 to acquire a package of gold exploration properties in Ontario Canada, followed by an option agreement providing 30 days for due diligence which if successful would lead to the acquisition of four additional exploration projects also in Ontario, Canada. In February 2021, the Company announced it had exercised the Option to acquire the McKellar Property by transferring total consideration of CAD$100,000 in cash and shares;
  • In February 2021 RRAL received confirmation that three licence applications had been granted enabling the commencement of ground exploration in the Victoria Goldfields, Australia;
  • In February 2021, the Company announced, subject to shareholder approval, a capital reduction to take place in order for distributions to be made to shareholders; and
  • Warrant exercises since the year end have raised a further £2,638,470 for the Company. 

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

“The audited results for the year ended 30 September 2020 demonstrate the pace of business development at Power Metal.   

In the previous financial year the Company emerged from the refinancing in February 2019 with a new sense of energy and a promise to deliver an exciting investment proposition in resource exploration and development.  As at today’s date Power Metal is a global exploration company with precious and base metal projects across three continents.

Much of the development achieved in the Company was undertaken in the year ended 30 September 2020 and since then we have seen the launch of proactive exploration and corporate activities across multiple projects including district scale opportunities.

Power Metal is well funded with a strong working capital position and an objective to continue to build our “balance sheet” working capital to move the Company toward financial self sustainability.

We believe that 2021 and the coming years presents a great opportunity for junior resource opportunities and where possible we intend to take full advantage.”

Notice of Annual General Meeting and Distribution of Accounts to Shareholders 

The Company’s Annual General Meeting will take place at 11.00 am on 30 March 2021 at Abbey House, 282 Farnborough Road, Farnborough, Hampshire, GU14 7NA.  The Company’s Annual Report and Accounts for the year ended 30 September 2020 will be posted to shareholders this week. Copies of the Notice of AGM and the Annual Report and Accounts will also be available on the Company’s website at www.powermetalresources.com 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. 

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 20 7583 8304

SP Angel Corporate (Nominated Adviser and Broker)

Ewan Leggat

+44 (0) 20 3470 0470

SI Capital Ltd (Broker)

Nick Emerson

+44 (0) 1483 413 500

First Equity (Joint Broker)

David Cockbill/Jason Robertson 

+44 (0) 20 7330 1883

Power Metal Resources #POW raises £101,500 in warrant exercise

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce it has received notices to exercise warrants over 13,150,000 new ordinary shares of 0.1 pence each in the Company.

The Warrant Shares are being issued pursuant to the exercise of 7,150,000 warrants at an exercise price of 1.0 pence per ordinary share of 0.1 pence each in the Company and the exercise of 6,000,000 warrants at an exercise price of 0.5p pence per ordinary share of 0.1 pence each in the Company.

Subscription monies of £101,500 have been received by Power Metal in respect of these exercises.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 13,150,000 Warrant Shares to be admitted to trading on AIM which is expected to occur on or around 1 March 2021 (“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 1,133,142,730 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.

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

 

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

 

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

Power Metal Resources #POW – Botswana Molopo Farms Complex – Drilling Update

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a further update from the Kalahari Key Mineral Exploration Pty Ltd (“Kalahari Key”) Molopo Farms Complex Project (the “Project” or “MFC Project”), which is targeting prospective massive nickel sulphide and platinum-group metal (“PGM”) mineralisation in Botswana.

Paul Johnson Chief Executive Officer of Power Metal Resources commented:

“Identification of additional visible sulphides deeper in hole KKME 1-6 gives further encouraging signals to the prospect of discovering significant mineralisation within the Molopo Farms Complex.

So far we are encouraged by the indications from core logging, and await assay results and mineralogical studies to confirm the sulphide minerals present. To be absolutely clear we make no assumption as to which sulphide minerals are present and await the assay results, and those results will likely guide the next exploration steps.

The identification of up to 14 new targets for ground exploration in the feeder zone from the Aster Mapping also adds to the evidence of district scale prospectivity.

Substantial new data continues to be generated on a relatively untested environment, advancing a journey of discovery in a geological setting where there is the clear potential for large scale metal deposits.”

Highlights:

  • The second diamond drill hole at the MFC Project, KKME 1-6, has been continued from 547m to a  final depth of 598 metres in ultramafic rocks.  The extra hole depth will provide further core from the geophysical target depth and will assist in further geophysical interpretation.
  • Core from KKME 1-6 and from the first drill hole at KKME 1-14 has been transported to Lobatse where it is being cut by the Botswana Geoscience Institute. Selected half core samples will be sent to a South African assay laboratory for base and precious metal analysis, this week. 
  • Logging KKME 1-6 cut core has identified disseminated sulphide mineralisation below 500m drill hole depth, notably in the section marked as a target by the geophysics. This is further to disseminated sulphide mineralisation identified around 308-313m drill hole depth from the initial KKME 1-6 core inspection (announced 11 January 2021). 
  • An agreement has been signed with the University of Witwatersrand in Johannesburg and selected quarter core samples will be sent to the University’s Geology Department this week for mineralogical and thin section analysis. 
  • A report received from Aster Funds Ltd (“Aster”) based in Toronto entitled ‘Satellite-Based Long Wave Infrared (LWIR), Short Wave Infrared (SWIR) and Synthetic Aperture Radar (SAR) Mapping, Molopo Farms Exploration Licences has identified about 14 new targets in the feeder zone, with priority targets recommended to be ranked for follow-up ground exploration.
  • Down-hole geophysics data is expected to be acquired in the next phase of the current programme, this should help identify any massive sulphide mineralisation proximal to the  disseminated sulphides encountered at around 308-313m drill hole depth and below 500m drill hole depth, in angled hole KKME 1-6.

OWNERSHIP STRUCTURE – MOLOPO FARMS COMPLEX PROJECT

Power Metal currently has an 18.26% shareholding in Kalahari Key and has elected to earn in (“Earn-In”) to a 40% direct interest in the MFC Project by funding US$500,000 of exploration expenditure by 30 April 2021, notably the diamond drilling of selected targets (the “Drill Programme”).  To date Power Metal have paid US$392,641 leaving a balance remaining of US$107,359 (approximately £76,801) which is fully covered by Power Metal cash resources.

THE DRILL PROGRAMME

The Drill Programme was for an initial planned 2,505m across four diamond core drill holes with planned target hole depths varying from 525m to 710m.  Ultimate meterage to be drilled will be determined in due course.

The Drill Programme is designed to intersect four high priority targets prospective for massive nickel sulphide mineralisation, delineated by both Time Domain Electromagnetic (“EM”) and Natural Field Audio Magneto Telluric (“NF-AMT”) geophysics surveys.

DRILL HOLE KKME 1-14

The first drill hole KKME 1-14 at the MFC Project attained a target depth of 515.8m.  The hole was completed safely and securely and achieved near 100% core recovery. 

KKME 1-14 was sited in the Jwaneng-Makopong Shear/Feeder zone to the east of the main Molopo Farms Complex intrusion.

KKME 1-14 supports the geological proposition that the geology at Molopo Farm is that of a feeder zone.

DRILL HOLE KKME 1-6

Hole KKME 1-6, the second hole, attained a target depth of 597.8m. The hole was designed to intercept the upper side of a conductive body modelled from geophysical survey data to commence around 500m down-hole depth.

KKME 1-6 is located in the project’s Tshepo (Hope) Central Target Area, approximately 20km west-southwest of the programme’s first drill hole KKME 1-14 and along strike on the shear zone interpreted as the Molopo Farms Complex Feeder Zone.

The Tshepo (Hope) Central Target Area lies within the centre of the interpreted feeder zone inside the near-surface sub-crop of the Molopo Farms Complex in Licence PL311/2016.

FURTHER INFORMATION

Kalahari Key have signed agreements with Aster Funds Ltd (“AFL”) and Bell Geospace Ltd (“Bell”) to integrate innovative exploration survey and processing techniques with the existing Kalahari Key airborne, AMT ground and downhole geophysical datasets with a view to accelerating and refining the exploration targeting process for future drill testing.

AFL employ satellite-based Aster Thermal Imagery to provide target mapping through longwave infra-red (“LWIR”) and shortwave infra-red (“SWIR”) Spectral Analysis and electromagnetic (“EM”) conductivity analysis based on Synthetic Aperture Radar. These systems complement Kalahari Key’s geophysical datasets and will help in the rapid determination of both the near-surface geology and alteration minerals which could be linked to underlying mineralised systems.

The collaboration with Bell will facilitate the integration and analysis of the KKME airborne and ground geophysical data with Bell’s high-resolution Zeppelin airship-supported gravity data collected over the three Kalahari Key Molopo Farms Complex licence areas (PL202/2018, PL310/2016, PL 311/2016). 

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

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

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

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