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Power Metal #POW – Interim Results

Power Metal Resources plc, the London listed exploration company seeking large-scale metal discoveries across its global project portfolio , announces its unaudited interim results for the six month period ended 31 March 2022.

 

Paul Johnson, Chief Executive Officer of Power Metal commented: “There is an underlying confidence and optimism that permeates the Power Metal business and the team within it.

 

We recognise the pressure challenging markets and falling share prices place on investor portfolios and are respectful of this whilst still enthusiastically articulating our progress and our ambitions.

 

Power Metal is at a key point with all projects having been the recipient of varying extents of exploration, which has been a substantial exercise given the breadth of our portfolio.

 

Where appropriate we are pursuing accelerated value crystallisation by preparing parts of our business for spin-out/disposals as you will see in the summary table below. Our internal exploration efforts will be focused on a smaller group of retained projects.

 

From this point acquisitions will be principally targeting additional uranium opportunities where we do see the value of continued growth of the uranium portfolio within our company.

 

My thanks go to the Power Metal team for their demonstrable commitment to progressing our business and to shareholders who have backed our work to date.  Our ultimate objective is to deliver considerable financial returns to our shareholders and our focus to date has been to build a company capable of delivering that through volatile markets. 

 

My very best to investors in the junior resource sector, a unique group of people willing to risk their capital, in a highly volatile sector, to deliver a financial return and enhanced opportunities in life.  For those allocating capital to Power Metal we will strive to help you succeed in your ambitions.”

 

NOTE:

The interim report contains the following key sections:

–  Key Developments in the half year to 31 March 2022;

–  Power Metal Interests as at today’s date;

–  Operational Highlights for the half year to 31 March 2022;

–  Operational Highlights after the half year end (April 2022 to date);

–  Financial Highlights for the half year ended 31 March 2022; and

–  Interim Financial Accounts for the half year ended 31 March 2022

Power Metal plans to release its next Quarterly Business and Operational Update for the second quarter in July, capturing latest developments within the business in addition to the information provided below.

KEY DEVELOPMENTS IN THE HALF YEAR TO 31 MARCH 2022

The half year period included extensive exploration activity including:

 

–  Reverse circulation (RC) drilling at the Tati Project located in Botswana.

–  Delineation of 12 airborne magnetic targets at the Ditau Project in Botswana and commencement of diamond drill programme.

–  Diamond drilling at the Haneti Project in Tanzania.

–  Diamond drilling at the Victoria Goldfields in Australia.

–  Confirmation of bonanza silver from diamond drilling at the Silver Peak Project located in British Columbia, Canada.

–  High-grade uranium confirmed from sampling undertaken at the Saskatchewan uranium property portfolio.

 

The half year period also included extensive corporate activity including:

 

–  Acquisition of the Pilot Mountain Project which hosts a robust tungsten-dominated Mineral Resource Estimate (MRE) located in Nevada, USA, and forming the completed Golden Metal Resources plc (“Golden Metal Resources”) planned listing vehicle.

–  Acquisition of the Western Australia and Northern Territory projects comprising the planned listing vehicle First Development Resources Ltd.

–  Grant of key exploration licences, environmental approvals, and heritage agreements across various of the Company’s global project interests.

–  Completion of the disposal of the Company’s Schreiber-Hemlo interests located in Ontario, Canada, to First Class Metals PLC who plan to list in London in 2022.

–  Expansion of the Company’s uranium interests surrounding the Athabasca basin located in Saskatchewan, Canada, and preparation of data rooms and factsheets for 7 uranium properties.

 

POWER METAL INTERESTS AT TODAY’S DATE

Country

POW %

Project Package

Resources Targeting

Status

Australia

49.9%

New Ballarat Gold Corporation

Victoria Goldfields JV

Gold

Balance of drill results awaited – Planned IPO

Australia

82.78%*

First Development Resources

Copper – Gold – Uranium – Rare Earths – Lithium

Planned IPO in progress

Australia

100%

Gawler Project

Copper – Gold

Awaiting licence grants

Botswana

52.60%#

Molopo Farms Complex

Nickel – Copper – Platinum Group Metals (PGMs)

Transition of ownership then drilling.

Botswana

100%

Tati Greenstone Belt

Gold – Nickel

Preparations for next step drilling key gold targets

Botswana

50%

Kalahari Copper Belt JV

Copper – Silver

Exploration underway to delineate drill targets

Botswana

50%

Ditau Camp JV

Rare Earths

Diamond drilling underway – await assays

Canada

30%

Silver Peak

Silver

Ongoing discussion of exploration plans & corporate options

Canada

Earn-in up to

100%

Authier North

Lithium

Finalisation of next stage exploration steps

Canada

100%

Athabasca Basin

Uranium

Finalisation of next stage exploration steps & corporate options

Canada

36.3%

First Class Metals

Gold – Nickel – Copper – Zinc

Planned IPO in Progress

Tanzania

35%

Haneti

Nickel – Copper – Platinum Group Metals (PGMs) – Gold – Lithium

Finalisation of next stage exploration steps & corporate options

USA

83.13%

Golden Metal Resources

Gold – Silver – Copper – Tungsten – Zinc

Planned IPO in Progress

USA

Earn-in up to

75%

Alamo Gold

Gold

Review of detailed exploration report findings

*   Reducing to 62.12% after Completion of the Pre-IPO Financing

# Subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

 

OPERATIONAL HIGHLIGHTS FOR THE HALF YEAR TO 31 MARCH 2022

African Project Interests

Tati Greenstone Project

· In October 2021 a 1,000m RC drill programme was commenced at the Tati Project located in the Tati Greenstone Belt of north-eastern Botswana.  The main goal of the drill programme was to test for the presence of geological formations which host nearby operating Gold (Au) and Nickel (Ni) mines within the Tati Greenstone Belt.  

 

· Results from the 1,000m RC drilling programme were released after the period end and are outlined below.

 

Molopo Farms Complex Project

· In November 2021 Kavango Resources PLC (LON:KAV “Kavango”) signed an option agreement with Kalahari Key Mineral Exploration Pty Limited (“KKME”), the holder of a 60% interest in the Molopo Farms Complex Project (Power Metal holds the remaining 40%).  The option agreement was to acquire 100% of the outstanding KKME shares. 

 

· The option was extended on two occasions but in February 2022, Kavango withdrew, unable to agree the final terms for acquisition with all shareholders. In May 2022, as outlined below, Power Metal secured a conditional agreement to acquire an additional 58.7% of the remaining KKME shares to take its overall shareholding in KKME to 87.71%.

 

· Following completion of the 2021 diamond drill campaign, in January 2022, the Company announced the renewal for 2 years of two key prospecting licences covering the Molopo Farms Complex Project:

 

–  PL310/2016 (221.4km2)

–  PL311/2016 (486.2km2)

 

Kanye Resources Joint Venture

· The Kanye JV includes 4,257km2 of ground within the Kalahari Copper Belt (“KCB”) located in northern Botswana over ten prospecting licences. During the period, ground exploration and drill target planning continued in the KCB, and in October 2021, the JV confirmed approval of the Environmental Management Plan (“EMP”), clearing the last key administrative hurdle, and enabling drilling to be undertaken subject to the results of the ongoing target refinement.

 

· The Kanye JV also includes the Ditau Camp Project (“Ditau” or the “Ditau Project”) located in southwestern Botswana, which is considered to be prospective for rare-earth element (“REEs”) and base-metal mineralisation. In March 2022, the Company announced the identification of 12 airborne magnetic targets the Ditau Project with the highest profile targets selected for inclusion in a diamond drill programme which commenced following the period end. The targets included:

 

–  i10 Target (a discrete circular airborne magnetic anomaly with a diameter of 2.2km)

–  i8 Target (a larger ring-like anomaly with a diameter of 4km)

–  i1 Target (that may represent a large, 7km x 18.5km intrusive complex)

 

· Whilst the drilling campaign would primarily target REE mineralisation hosted within interpreted carbonatites or felsic intrusives, the targets could also be related to layered mafic intrusive systems, which are considered by the Company to be prospective for nickel, copper, and platinum group element (“PGE”) mineralisation.

 

Haneti Project

· In January 2022, the Company announced the commencement of the inaugural diamond drill campaign at the Haneti Project targeting nickel-copper-cobalt and PGE magmatic sulphide mineralisation.

 

· By February 2022, the drill campaign had successfully completed a total of 900.04 meters of drilling; intersections of serpentine and gabbroic rocks were identified and following core logging the project moved into the sampling and testing phase.

 

· Assay results from the sampling and testing phase were released after the period end and are outlined below.

 

Australian Project Interests

New Ballarat Gold Corporation (Victoria Goldfields JV)

· The JV with Red Rock Resources plc (LON:RRR) had previously submitted licence applications over c. 2,300km2 of ground within the prolific Victorian goldfields, and during the period saw further licence applications granted. By December 2021, a total of 9 exploration licences were granted covering 1,501km2, several of which cover high priority exploration targets.

 

· Various desktop and field exploration work continued through the period and in December 2021, inaugural diamond drilling commenced targeting gold mineralisation at the O’Loughlin’s and Mt. Bute prospects. 

First Development Resources

· In October 2021, the Company announced that its wholly owned subsidiary First Development Resources Ltd (“FDR UK”), had acquired outright First Development Resources PTY Limited (FDR Australia), an Australian private company holding 4 granted exploration licence interests and one licence application interest in Western Australia. Additionally, a A$165,000 government co-funding drilling support grant was awarded for the Wallal Project held by FDR Australia. 

· FDR UK commenced preparations for a UK listing, and in November 2021, announced FDR Australia had acquired URE Metals PTY Limited, the holder of three exploration licence applications covering 1,574.92km2 prospective for uranium and REE mineralisation within the Northern Territory, Australia. 

· In November 2021, the Company saw the grant of the final Western Australia licence held by FDR Australia, Braeside West, and in February 2022, the grant of all three Selta Project licences in the Northern Territory and the launch of an in-depth review of all geological, geophysical, and geochemical information available over the project.  The results of this review announced in March 2022, confirmed multiple high-priority targets for uranium and REE mineralisation. 

· In February 2022, the Company also announced the results of a comprehensive desktop study over the Paterson region projects, which included several developments from the magnetic bullseye targets located within the Wallal Project. 

Gawler Project

· In October 2021, Power Metal’s 100% owned Australian subsidiary Power Metal Resources Australia Pty Limited, lodged applications covering 1,994Km2 within the Gawler Craton of South Australia, which are specifically targeting gold-copper  mineralisation. 

North American Project Interests 

Silver Peak Project

 · The assay results following a summer 2021 diamond drilling programme at the Silver Peak Project located in British Columbia, Canada, were released in November 2021. The results highlighted bonanza grade silver (>1,000g/t) in 10 of the 19 holes drilled, including a top intercept of 0.76m of 8,692.2g/t Ag (279.5 oz/t).

 

· Furthermore, overlimit assays were completed which returned high-grade copper, antimony, and lead, with the highlight result increasing to 0.76m of 10,131g/t Ag-Equivalent. 

Saskatchewan Uranium Properties 

· Building on the initial staking of exploration properties completed in September 2021, in October the Company announced an expansion of its wholly owned uranium interests to 7 properties covering a combined 241km2, surrounding the prolific Athabasca Basin in Saskatchewan, Canada. The package was further increased to 411.96km2 as announced in November 2021. 

· Also announced in November 2021 was the launch of an inaugural exploration sampling programme covering 3 of the 7 properties, the results from which were announced in December 2021, and confirmed high-grade uranium in rock samples with highlight results up to 3.86% U 3 0 8  (38,600ppm).

· In January 2022, the Company launched an extensive data compilation over all 7 properties to provide data rooms for internal use and factsheets to assist third parties expressing an interest in the properties. 

· In February 2022, the Company announced the results from the Reitenbach Property review, confirming extensive uranium prospectivity and that various commercial options for the Property were under review.  A National Instrument 43-101 technical report for Reitenbach to assist the commercialisation process was commissioned in March 2022, the results of which will be announced in due course. 

Authier North Project 

· A programme of rock and soil sampling launched in September 2021 demonstrated the highest lithium results located in the eastern part of the Authier North Project, within the northeast and south-eastern grids.   In the period, the Company reviewed next-stage exploration plans which may include additional infill soil sampling between the two grids, as well as possible ground-based geophysical surveys over the entire project.

Golden Metal Resources 

· Golden Metal Resources continued to work on preparations for its planned IPO in the period which would see the listing of a Nevada-focused exploration business in London. 

· In December 2021, the Company announced a successful pre-IPO financing for Golden Metal Resources at a pre-money valuation of £3.25million, raising £750,000 (including £75,000 subscribed by Power Metal and £50,000 by Paul Johnson, Power Metal CEO). 

· The Company announced In October 2021 that new copper anomalies had been identified from exploration work over the Garfield Project leading to additional staking of claims to cover the newly defined anomalies. 

· In November 2021, the Company completed the 100% acquisition of the Pilot Mountain Project into Golden Metal Resources plc from AIM-listed Thor Mining PLC (LON:THR). 

· A detailed exploration update covering all four properties (Pilot Mountain, Golconda, Garfield, and Stonewall) was announced in November 2021, and a further commercial & project update was released in February 2022. 

Alamo Project 

· In November 2021 the Company announce the commencement of the test pitting programme at the Alamo Project in Arizona USA the results of which remained outstanding at the half year end and as at the date of this report further technical information has been received which is currently under review (see below). 

OPERATIONAL HIGHLIGHTS AFTER THE HALF YEAR END (APRIL 2022 TO DATE)

African Project Interests

Tati Greenstone Project

· In April 2022, the Company announced drill results from the RC drill programme which commenced in October 2021. The programme successfully identified the targeted geological formations and gold in assays were returned from 7 holes which were targeted within a previously identified Au-in-soil anomaly.  The highlight results included 5.17g/t Au over a 3m intersection from only 9m downhole.

 

· Following these results and a further geological review, the Company secured an additional prospecting license over ground covering the historical Cherished Hope Gold Mine, which added 16.14km2, further increasing the Tati Project footprint to 140km2.

 

Molopo Farms Complex Project

· In May 2022, the Company announced it had signed an initial agreement with the shareholders of Kalahari Key Mineral Exploration Pty Ltd (‘KKME”) to acquire an additional 58.7% of the issued share capital of KKME. The goal is to then restructure the ownership of the Molopo Farms Complex project so that KKME’s 100% interest is restored and to become the operator of the Molopo Farms Complex Project.

 

· Upon completion of the acquisition and further restructuring, the Company will hold 87.71% of the issued share capital of Kalahari Key Mineral Exploration Pty Ltd.

 

Kanye Resources Joint Venture

· In April 2022, the Company announced the commencement of diamond drilling at the Ditau Camp Project. The programme includes up to 2,400m of drilling within 6 holes targeting 3 high-priority exploration areas.

 

· In May 2022, the Company also announced the expansion of the exploration programme to include 16.1 line-km of Audio-Magnetotelluric (“AMT”) geophysics surveys over various target areas.

 

· Drill programme updates have been provided post half year end including second hole DITDD004 which demonstrated highly elevated magnetic susceptibility readings between 293m and 321m (the “Zone of Interest”). The core from the Zone of Interest has been sent for rush assay.

 

Haneti Project

· In May 2022, the Company announced the drill results from the diamond drill programme where all drillholes intersected significant sequences of altered ultramafic and mafic rocks, representing the first ever fresh rock drill core samples extracted from the Haneti Project.

 

· Integration of thin section petrographic analyses with bulk rock geochemical results across multiple intersected lithological units suggest that the PGE potential at Haneti is limited to serpentinite units, and that nickel and copper mineralisation should preferentially be targeted within the intrusive gabbro units.

 

· Whilst the drilling results showed anomalous results for nickel, copper, gold, and PGE’s that are subject to further interpretation, economically significant intersections of these metals were not encountered in the drilling.

 

· Simultaneously, rock sampling results from the Babayu Lithium Prospect highlight significant lithium and tantalum potential with lithium-caesium-tantalum (“LCT”) pegmatite mineralisation outlined over a 600m strike-length. The chip sample results (up to >10,000ppm Li and 2,680ppm tantalum) and strike length combined with the perceived shallow dip of the main pegmatite body highlight the potential for a significant near-surface mineralised body that warrants further assessment and evaluation.

 

· Licence applications have been made in respect of the areas considered prospective for lithium and the JV is currently implementing a lithium consolidation strategy including existing lithium applications and reviewing potential partnerships with local licence holders.

 

Togo Uranium

 

· In June 2022 Power Metal announced an agreement to evaluate, acquire and explore new uranium opportunities in Togo, West Africa.

 

Australian Project Interests

New Ballarat Gold Corporation (Victoria Goldfields JV)

· In the period the JV’s combined footprint within the Victoria Goldfields increased to 1,832km2 from 14 granted exploration licences, including key licence grants in May 2022 – notably EL007330 located northeast of Ballarat, Australia. Significantly, this newly granted licence covers the historical Ajax gold mine which historically produced 312,789oz Au at an average grade of 14.8g/t Au in the 1920s.

 

· In the period, the JV has undertook 860m of diamond drilling programme targeting the O’Loughlin’s and Mt Bute Prospects, located 30km and 20km from the town of Ballarat, Australia, respectively.

 

· Initial assay results from the O’Loughlins Prospect were released on 12 April 2022, demonstrating high-grade gold from O’Loughlins and further results released in June 2022, noted the discovery of intrusion related gold (IRG) mineralisation confirmed at Mt Bute Prospect.

 

First Development Resources

· In April 2022, the CEO of FDR UK undertook a site visit to the FDR Australia projects and conducted meetings with key relationship partners in Western Australia and the Northern Territory.

 

· A Selta project focused update was released in May 2022, confirming enhanced REE prospectivity and an additional REE exploration target area.

 

· In June 2022, FDR UK completed a £1,125,000 pre-IPO fundraise with a £3,000,000 pre-money valuation (Including £75,000 subscription from Power Metal and £50,000 from Power Metal CEO Paul Johnson).

 

· Following a lithium specific review completed in June 2022, FDR UK mobilised a field investigation team to conduct mapping and surface sampling at identified lithium prospective targets.

 

North American Project Interests

Saskatchewan Uranium Properties

 

· The Company has completed an in-depth historical data compilation across its entire Uranium Portfolio surrounding the prolific Athabasca Basin and now possesses a robust fully digitised database covering all historical work programmes completed across each asset.

 

Golden Metal Resources

· Golden Metal Resources continued to progress preparations for its planned London listing, assisted by advisors across all related disciplines.

 

Alamo Project

 

· In June 2022 Power Metal received a further technical report in respect of the Alamo Project work programme which is under review at present.

 

 

FINANCIAL HIGHLIGHTS FOR THE HALF YEAR ENDED 31 MARCH 2022

· Loss for the period, attributable to owners of the parent of £1.69 million (2021: £0.59 million), resulting in loss per share of 0.12 pence (2021: 0.07 pence);

 

· Financing undertaken in November 2021 raising £1.05 million and warrant and option exercises during the period raised £0.59 million for the Company;

 

· Total assets of £9.24 million at the period end (30 September 2021: £6.28 million); and

 

· Net assets of £8.01 million at the period end (30 September 2021: £5.97 million).

 

Power Metal #POW – Uranium Business Update and Togo Agreement

 

Power Metal Resources plc (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a business update covering the Company’s global uranium interests.

Togo Agreement

· Power Metal has signed an agreement with David Knopf, a consulting geologist governing the evaluation, acquisition and exploration of uranium prospects in Togo, West Africa (the “Agreement”).

· Power Metal is to establish a wholly-owned operating subsidiary in Togo, to act as a holding company for Togo uranium interests (“Togo Subsidiary”).

· Upon successful transfer of newly acquired interests into the Togo Subsidiary, Power Metal will pay agreed finder’s fees to Mr Knopf equating to €27,000 in total for the first acquisition and €15,000 for any subsequent acquisitions (finders fees will be payable in part cash and part Power Metal shares based on the volume weighted average price of Power Metal shares in the ten working days prior to each acquisition).

· In addition, should Power Metal or the Togo Subsidiary announce a Decision to Mine (“DTM”) in respect of any project acquired under the Agreement, further fees would be payable of €100,000 in cash and €200,000 in Power Metal shares (Power Metal Shares based on the volume weighted average price of Power Metal shares in the ten working days prior to each DTM).

· Power Metal will have access to the services of Mr Knopf as well as his Togo based business partner who is an established senior geologist with strong capabilitities in-country who will assist with the organisation and management of local geological operations.

· Existing project targets have been established and the Company is working with the team in Togo to plan next stages of exploration as well as to secure new opportunities as soon as possible.

Athabasca Basin, Saskatchewan, Canada

Power Metal, through its wholly-owned local subsidiary, holds a large strategic footprint in the Athabasca Basin area with 7 properties covering a combined area of 450.01km2. The Company’s in-house uranium specialist has completed a data compilation exercise across all 7 properties, the results of which have previously been announced to the market.  Shareholders wishing to see an overview of the findings from each property are invited to visit the Company’s website where individual uranium project factsheets have been uploaded:

https://www.powermetalresources.com/fact-sheets/

The Power Metal team are currently finalising next stage exploration plans at our 7 Athabasca properties and a further update will be provided covering this in due course.

The Company commissioned a National Instrument 43-101 technical report (“Report”) in respect of the Reitenbach Property as announced in March 2022:

https://www.londonstockexchange.com/news-article/POW/uranium-portfolio-update-athabasca-basin-canada/15381520

Power Metal expects to release the findings from this report in the near term.

Further information from the data compilation completed over the Reitenbach Property was announced by the Company in February 2022 and may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/reitenbach-uranium-property-athabasca-basin/15319141

Selta Project, Northern Territory, Australia

The Selta Project (“Selta”) was acquired in November 2021 by Power Metal UK subsidiary First Development Resources Limited through the acquisition of Australian private holding company URE Metals Pty Limited.

In February 2022 an in-depth review (“Review”) of the rare-earth element and uranium potential at the Selta Project was undertaken:

https://www.londonstockexchange.com/news-article/POW/selta-project-update/15328364

The Review confirmed multiple uranium targets at Selta, further details of which were announced in March 2022 and may be viewed in the link below:

https://www.londonstockexchange.com/news-article/POW/selta-project-multiple-target-areas-identified/15371081

Further work is underway to evaluate the findings of the review and determine the next stages for uranium focused exploration.

Paul Johnson, Chief Executive Officer of Power Metal commented:

“This Agreement announced today securing Power Metal a pathway into Togolese uranium opportunities marks our first entry into African uranium exploration.  We are already working with the Togo team in respect of sourcing new uranium opportunities and I expect to report back soon on developments there.

The Togo opportunity complements the Company’s existing uranium interests including the large 7 property portfolio in the Athabasca Basin area of Saskatchewan, Canada, and the Selta Project, forming part of planned listing vehicle First Development Resources Limited.

At Power Metal we see an opportunity to further build our uranium profile. This will be accomplished by undergoing exploration on our existing exploration portfolio, the acquisition of additional interests, as well as through investment holdings in new uranium focused entities that we can help to create.”

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 #POW – Exercise of Warrants

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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 657,895 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 £4,934 for the Company. 

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 657,895 Warrant Shares to be admitted to trading on AIM which is expected to occur on or around 27 June 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 1,477,036,161 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.

 

#POW Power Metal Resources – Transaction Update – Pilot Mountain Project

Power Metal Resources PLC (LON:POW) the London AIM listed company which finances and manages global resource exploration projects, announces a transaction update following the exercise of the option (the “Option”) on the Pilot Mountain Project (“Pilot Mountain” or the “Project”) located in Nevada, United States of America (“USA”) (the “Transaction”). 

The Company’s announcement in respect of the Transaction of 1 November 2021 may be viewed through the following link: https://www.londonstockexchange.com/news-article/POW/acquisition-of-pilot-mountain-project/15193667   

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

“I am pleased to confirm completion of the Pilot Mountain transaction and the further signing of a Variation Agreement enabling Power Metal to secure early clearance of the tail benefit.

Our ongoing technical work in respect of the Pilot Mountain project has increasingly demonstrated significant upside potential within the existing 2018 Mineral Resource Estimate and we considered there was a reasonable likelihood that the tail benefit would become payable within the 2 year payment period.

The early clearance of the tail benefit also frees Power Metal from any future contractual financial encumbrance in respect of the Project.

The recent classification of tungsten as a critical mineral from the United States Geological Survey, and the lack of primary domestic tungsten production makes the Project in our view highly strategic, both now, and potentially much more so in the future with successful further exploration work which will be undertaken by Golden Metal Resources.”  

HIGHLIGHTS

Transaction Completion

Power Metal subsidiary Golden Metal Resources Limited (“Golden Metal UK”) has established a new wholly owned subsidiary Golden Metal Resources Australia Pty Limited (“Golden Metal Australia”) which has now completed the 100% acquisition of the Pilot Mountain project. 

Variation Agreement

The terms of the Transaction are outlined below, and included the Tail Benefit of deferred consideration of US$500,000 (c£368,000)  payable to Thor Mining plc (the “Vendor” or “Thor Mining”) in the event that Golden Metal UK publishes a JORC or 43-101 compliant resource at Pilot Mountain which increases against current declared levels by 25% across total indicated and inferred categories within two years after the Transaction agreement date.

Power Metal has now agreed terms to secure the early clearance of this Tail Benefit through the payment of £50,000 cash and issue to Thor Mining of 4 million Power Metal new ordinary shares of 0.1p each in the Company at an issue price of 2.5p per share (£100,000) (“Variation Shares”).

Power Metal and Thor Mining plc have signed a Variation Agreement to effect the above.  Following completion of the payments due under the Variation Agreement, all amounts due or potentially due under the Transaction have now been settled in full and no further consideration is due.

Listing of Golden Metal

Golden Metal UK is making good progress with its proposed listing process and a further update will be provided in the near future.

TRANSACTION INFORMATION

Power Metal subsidiary Golden Metal Resources Limited (“Golden Metal UK”) has established a new wholly owned subsidiary Golden Metal Resources Pty Limited (“Golden Metal Australia”) which has now completed the 100% acquisition of the Pilot Mountain Project.

Power Metal has paid US$115,000 in cash consideration to Thor Mining and US$1,650,000 of consideration through the issue to Thor Mining of 48,118,920 new Ordinary Shares at an issue price of 2.5 pence per share (“Initial Consideration Shares”).

Thor Mining will hold the Initial Consideration Shares in full for a minimum of 6 months after the Option Exercise date and thereafter the Initial Consideration Shares will become freely tradable in 25% instalments (25% tradable 6 months after Option Exercise date, 50% – 9 months after Option Exercise date, 75% – 12 months after Option Exercise date and 100% – 15 months after Option Exercise date.)  This trading restriction period may be varied with the written agreement of both parties.

In addition, Power Metal have issued to Thor Mining 12.5 million warrants to subscribe for Ordinary Shares with an exercise price of 4p per Ordinary Share and life to expiry of 3 years from the Option Exercise date (“Initial Consideration Warrants”).  Should the volume weighted average price (“VWAP”) of Power Metal shares meet or exceed 10 (ten) pence for 5 consecutive trading days Power Metal may serve notice on Thor Mining providing 14 calendar days to exercise and pay for the Initial Consideration Warrants or the Initial Consideration Warrants will be cancelled.

Should Thor Mining exercise the Initial Consideration Warrants above within 12 months from the Option Exercise date, Thor Mining will receive one for one replacement warrants to subscribe for Ordinary Shares at a fixed price of 8p per Ordinary Share, and life to expiry ending 3 years from the date of Option Exercise (“Super Warrants”). Should the Power Metal volume weighted average share price meet or exceed 20p for five consecutive trading days Power Metal may at any time issue Thor Mining with a written notice providing 14 days to exercise and pay for the Super Warrants or the Super Warrant will be cancelled.

All Option Exercise Consideration items outlined above have now been paid or issued in full.

Tail Benefit 

Power Metal was to issue Thor Mining with a further US$500,000 of consideration in new Ordinary Shares if Golden Metal UK publishes a JORC or 43-101 compliant resource at Pilot Mountain which increases against current declared levels by 25% across total indicated and inferred categories within two years after the Agreement date.  The number of Ordinary Shares to be issued was to be calculated based on the volume weighted average Power Metal share price in the ten trading days immediately preceding the announcement by Golden Metal of the JORC or 43-101 compliant increase.

With the Variation Agreement announced today, the above Tail Benefit is now eliminated.

Additional Terms

Thor Mining and their professional corporate, licensing and geological teams will continue to work with Power Metal and Golden Metal to assist with Pilot Mountain ownership transfer and to manage local corporate & exploration/development operations in the 12 months following the Option Exercise date. Power Metal and Golden Metal will pay for any assistance provided post Transaction on reasonable commercial terms to be agreed.

PILOT MOUNTAIN OWNERSHIP STRUCTURE

Wholly owned1 Power Metal subsidiary Golden Metal Resources UK through its wholly owned subsidiary Golden Metal Resources Australia Pty Ltd., now holds 100% of Black Fire Industrial Minerals Pty Ltd., (Australian private company) which owns 100% of Industrial Minerals (USA) Pty Ltd., (Australian private company) which owns 100% of: BFM Resources Inc., and Pilot Metals Inc., (USA private companies) which own tenements covering the entire Pilot Mountain Project and the 2018 Mineral Resource Estimate.2

Further disclosures

As at the date of option announcement on 31.08.21 the following disclosures were made:

As at 30 June 2020 BFM Resources Inc had Gross Assets of AUD$21,449 (circa £11,317) and incurred no profit or loss (AUD$Nil) for the year ended 30 June 2020.

As at 30 June 2020 Pilot Metals Inc had Gross Assets of US$3,055,411 (circa £2,226,602) and a loss of US$106,164 (circa £77,366) for the year ended 30 June 2020.

As at 30 June 2020 Black Fire Industrial Minerals Pty Ltd on a consolidated basis had Gross Assets of AUD$5,181,951 (circa £2,738,397) and a loss of AUD$154,690 (circa £81,746) for the year ended 30 June 2020.

It is further noted that since the announcement of the Pilot Mountain option, Thor Mining plc transferred the Pilot Mountain project and all holding companies to “Held for Sale Assets” with a written down value of £1,050,000 as at 30 June 2021 their reported financial year end.

ADMISSION AND VOTING RIGHTS

Application will be made for the 4,000,000 Tail Benefit Shares to be admitted to trading on AIM which is expected to occur on or around 31 January 2022 (“Admission”). The Tail Benefit 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 1,448,339,986 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.

Reference Notes:

  As announced on 9.12.21 Golden Metal Resources Limited has undertaken a pre-IPO financing raising £750,000.  Following the issue of shares in respect of this financing Power Metal will hold 83.13% of Golden Metal Resources Limited.

2   https://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20182019/20181214-pilot-mountain-resource-update.pdf

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Power Metal Resources #POW – New Ballarat – Licence Grant and Drilling Commences

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 its joint venture subsidiary New Ballarat Gold Corporation PLC (“NBGC”) which is undertaking gold exploration at its granted exploration licences in the Victoria Goldfields in Australia.

Highlights

  • NBGC’s first diamond drill programme begins at O’Loughlin’s prospect south of Buninyong
  • Grant of new 489 km2 exploration licence EL007282 (Blue Sky) in Victoria, Australia, with 9 licences now granted covering 1,501 km2

Further information in respect of the granted licences and licence applications is provided below and for additional information regarding the above drill programme, now commenced, please review the Company’s announcement dated 7 December 2021 which may be viewed through the following link:

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

Paul Johnson, Chief Executive Officer of Power metal Resources commented: “Today marks an important point in the life of New Ballarat Gold Corporation as inaugural gold exploration drilling commences.  We look forward to the results feeding out from the project.

We also have the welcome news that a further large exploration licence, EL007282 (Blue Sky), has been granted, taking the total portfolio of granted licences to over 1,500km2 for the first time.  To hold such a large land granted footprint in the Victoria Goldfields is a tremendous positive.”

Granted Licences

The granted licences cover high priority areas covering 1,501 km2 where NBGC has early drill targets and in which exploration has already started.

Licence Number Project Name Area (km2)
EL007271

 

Buninyong

(renamed)

133
EL007281

 

Blue Chip 74
EL007285

 

Blue Ribbon 8
EL007327 Dereel 60
EL007385 Sardinia                    4
EL007329 Kilmore 484
EL007301 Pitfield/Mt Bute 85
EL007328 Blue Yonder 164
EL007282 Blue Sky

(Announced today)

489
Total c 1,501

Licence Applications

RRAL has applications in process for seven other new gold exploration licence areas covering approximately 805 km2 in the Victoria Goldfields of Australia including:

Licence Application Number Project Name Area (km2)
EL007294 Red Queen 130
EL007330 Daylesford

(renamed)

202
EL007460 Kilmore West 325
State land within EL007271

 

[EL007505

EL007506

EL007507]

 

 

 

 

 

 

 

[9

9

8]

EL007540*

(3 competing applications)

 

Outer Ballarat 148
Total c 805

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

New Ballarat Gold Corporation PLC

NBGC is a privately owned joint venture company owned 50.1% by Red Rock Resources plc (LON:RRR) and 49.9% by Power Metal.

NBGC holds a 100% interest in local operating subsidiary Red Rock Australasia Pty Limited a private Australian company which holds a 100% interest in all operating granted licences and licence applications (“RRAL”).

NBGC holds a strong land position of 2,306km2 (1,501km2 granted licences) in the rich gold fields of Victoria, Australia, principally around the mining centre of Ballarat, as the result of a focused exploration strategy targeting high grade quartz hosted gold veins systems in a region where the exploration models and targets are well understood.

NBGC has carefully assembled its portfolio of properties comprising a broad range of robust exploration targets, all of which remain largely undeveloped by modern explorers.

With the first tenements granted only in 2021 NBGC is already at an advanced stage of exploration with three promising gold prospects one of which is the subject of the diamond drilling now underway.

Still able to actively operate in the current global pandemic, NBGC has exploration geologists and field crews active in the field. This is coupled with a technical team holding an in-depth knowledge of Victorian geology including extensive underground experience gained from working in currently operating mines in the area.

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 results from on-site work programme.
Athabasca Uranium Canada 100% Phase I field exploration completed Laboratory assay results of samples collected for uranium and REEs
Authier North Lithium Canada Earn-in to 100% Soil & rock sampling completed Laboratory assay results of samples collected
Ditau Project Botswana 50% Preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare-earth elements and base metals

 

Field programme findings and defined drill targets for near term drilling.
Kalahari Copper Belt Botswana 50% Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas Field programme findings and defined drill targets for near term drilling
Molopo Farms Botswana 53% Kavango Option to acquire an interest in local project holding company.  Option fee payable through defined work programme Results from various work activities underway as part of the Kavango Option
Tati Gold/Nickel Botswana 100% Reverse circulation drill programme completed Laboratory assay results awaited
Victoria Goldfields Australia 49.9% Ongoing exploration across 1,501km2 of granted exploration licences

 

Results from field programme including drill programme underway
Wallal Gold/Copper Project Australia 83.33%1 Passive seismic and 2D seismic processing work programme completed Results awaited

 

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

 

Power Metal Resources #POW – Business Update – Red Rock Resources Australasia

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces a business update by Red Rock Resources Australasia Pty Ltd (“RRAL”).

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

“Exploration on our licences within the Victoria Goldfields has been successful with recent soil sampling highlighting multiple high-priority gold targets across granted licences. Certain of these targets are now at the drill-ready stage and will be the subject of the planned upcoming drill programmes, showing great progression from RRAL’s ground exploration to date.

We believe there is potential for major gold discoveries in the granted licences we hold, something which is not surprising given the geological attractiveness of the region, and multiple large-scale discoveries made and gold mines built in the state of Victoria. Therefore the launch of inaugural diamond drilling is an important step forward and we will be eager to see what this drilling delivers.”  

 

HIGHLIGHTS:

Holding Transfer to Planned London Listing Company

Power Metal previously held a direct 49.9% interest in RRAL which has a 100% interest in the various licences held within the state of Victoria and Western Australia, further details of which are provided below.

A new UK plc has been formed, New Ballarat Gold Corporation PLC (“New Ballarat” or “NBGC”), which is the vehicle for the planned London listing.  New Ballarat now holds a 100% interest in RRAL.

The original shareholders of RRAL have transferred their holdings up to the vehicle New Ballarat in preparation for the planned listing. As a result, Power Metal now holds 49.9% of New Ballarat, and Red Rock Resources plc (“RRRplc”) holds the remaining 50.1% interest.

Grant of New Exploration Licence

Exploration licence application EL007328 (164km2) was granted on November 26, 2021. Following this grant, a total of 8 licences have now been granted covering a total area of 1,012 km2.

Soil Sampling Update – New Anomalies Identified

A total of 1091 soil samples have now been tested by Portable X-ray Fluorescence (“pXRF”) from the ongoing soil sampling programme.

The interim results have identified several new anomalies as well as confirming the regional correlation of arsenic anomalism with historic gold workings and known gold-bearing structures. Highlights include:

o  Buninyong (EL7271): Exciting new 1 km long north-south oriented arsenic anomaly identified which is coincident with a line of gold mineralisation extending north of Mt. Buninyong. Regional structural analysis of this new anomaly reaffirms the concept that the Scotsburn workings (which extend south-southeast of Buninyong down to O’Laughlins) is the continuation of the main Ballarat East line currently being mined underground at the Ballarat Mine (owned by Shen Yao Holdings). Additional infill soil sampling is planned within the area of the newly defined anomaly.

 

o  Pitfield (EL7301): Strong anomalism identified surrounding known gold mineralisation at Mt. Bute. Additionally, strong arsenic anomalism identified near the west margin of the tenement in an area previously not explored. Significantly, this new anomaly is located along a roughly north-south oriented line connecting up with Mt. Bute mineralisation located over 6km away to the north, suggesting that mineralisaiton may continue in a broad north-south orientation throughout the tenement. This new area is presumed to be in part overlain by recent volcanic rocks and this may be the first indication that the pXRF sampling technique may assist in exploring for mineralisation under cover at Pitfield.

 

o  Dereel (EL7327): Soil sampling results highlight an anomalism along the southern extension of the Golden Reefs/DeReel mine (subject to final access agreements, drilling down dip and along strike of these historic mines is planned early in 2022). Additionally, two other anomalies were identified on the tenement including a strong anomaly located in the northwest where there is no known historical information, as well as a strong response in the far southwest lines which appears to be related to the Long Thought Of mine workings (inferred southern extension of Berringa gold fields and remains largely untested). Further infill soil sampling planned over the various anomalies identified.

Further information in respect of the soil sampling programme, findings and related maps is available in today’s announcement released by Power Metal partner, RRRplc through the following link:

https://www.rrrplc.com/investors/regulatory-news/

Diamond Drilling Campaigns

Final preparations underway for multiple near-term diamond drilling campaigns including:

o  Programme south of Buninyong at O’Loughlins targeting a 1km structure planned for December 2021;

 

o  Programme at Pitfield planned for early 2022, with further targets now identified for proposed February 2022 drilling.

Currently there are 8 drill pad locations at O’Loughlins and 6 at Pitfield. In theory 2-3 drill holes could be undertaken from each location in various directions. Some holes may extend to over 100 metres, but the drilling is flexible, in part dependent on the core review as each drill hole progresses.  At this time the expectation is for circa 600 metres of diamond drilling at O’Loughlins and 1,400 metres at Pitfield for a total 2,000 metres of drilling.  The specific location meterage is flexible and may be subject to change depending on results.

Background Information New Ballarat Gold Corporation PLC

NBGC is a privately owned joint venture company owned as to 50.1% by Red Rock and as to 49.9% by Power Metals Resources PLC (AIM:POW). 

 

NBGC holds a strong land position of granted exploration licences totalling 1,012 sq km in the gold-rich fields of Victoria, Australia. The company has carefully assembled its portfolio of gold properties comprising a broad range from robust exploration targets to near term resource potential, all of which remain largely undeveloped by modern explorers.

 

With the first tenements granted only in 2021, NBGC has already advanced three promising gold prospects to the drill-ready stage, which is slated to take place Q4 2021 & Q1 2022.

 

Still able to actively operate in the current global pandemic, the company has exploration geologists and field crews active in the field. This is coupled with a technical team holding in-depth knowledge of Victoria’s geology including extensive underground experience gained from working in active gold mines within the area.

 

Granted Licences

The granted licences cover high priority areas covering 1,102 km2 where NBGC has early drill targets and in which exploration has already started.

Licence Number

Project Name

Area (km2)

EL007271

Buninyong

(renamed)

133

EL007281

Blue Chip

74

EL007285

Blue Ribbon

8

EL007327

Dereel

60

EL007385

Sardinia

  4

EL007329

Kilmore

484

EL007301

Pitfield/Mt Bute

85

EL007328

Blue Yonder (Announced today)

164

Total

c 1,012

Licence Applications

RRAL has applications in process for eleven other new gold exploration licence areas covering approximately 1,294km2 in the Victoria Goldfields of Australia including:

License Application Number

Project Name

Area (km2)

EL007282

Blue Sky

489

EL007294

Red Queen

130

EL007330

Daylesford

(renamed)

202

EL007460

Kilmore West

325

State land within EL007271

 

[EL007505

EL007506

EL007507]

 

 

[9

9

8]

EL007540*

(3 competing applications)

Outer Ballarat

148

Total

c 1,294

 

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

The following applications have been made in Western Australia, covering largely areas previously held by the Company at the time of its original listing. The two where there is another applicant will be subject to a ballot.

EL45/5859

(One competing application)

Paterson

227

EL45/5885

Pilbara/Paterson

70

EL45/5881

(One competing application)

Pilbara/Paterson

33

 

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

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Power Metal Resources #POW – Exercise of Warrants

pow

Power Metal Resources plc (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces it has received a notice to exercise warrants over 1,500,000 new ordinary shares of 0.1 pence each in the Company (“Warrant Shares”) raising an additional £10,500 for the Company.

The Warrant Shares are being issued pursuant to the exercise of 1,500,000 warrants at an exercise price of 0.7 pence per ordinary share of 0.1 pence each in the Company (“Ordinary Share).

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 1,500,000 Warrant Shares to be admitted to trading on AIM which is expected to occur on or around 9 November 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 1,343,339,987 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 #POW – Ditau Project Botswana – Exploration Update

pow

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an exploration update in regards to the Ditau Project located in southwestern Botswana targeting Rare Earth Elements (“REEs”) and base metals.

The Ditau Project is held in a 50/50 Joint Venture with Kavango Resources plc (“Kavango”). Kavango is the Operator.  

HIGHLIGHTS:

· Further to the exploration programme announced on 02 July 2021, Kavango has increased the exploration scope of Ditau to include base metals as well as REEs

 

· Accelerated drilling on I10 Target

o  Previous exploration by Kavango has identified a 2.5km by 2.8km target area at I10 with high AMT resistivity, coincidental with a gravity high anomaly.

o  Spectral Geophysics is to conduct a Time Domain Electromagnetic (“TDEM”) survey over I10 imminently.

o  Drilling of I10 planned in Q4 2021, together with a downhole electromagnetic survey (“EM”).

o  Environmental Management Plan currently in place.

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

“We believe the Ditau Project holds much potential and it is very good to see the next phase of work underway culminating in drilling of a key target planned for this year.

The interest in REEs is growing worldwide and to be actively progressing Ditau could not be more timely.

The Power Metal Botswana portfolio of projects continues to advance with exploration work underway across all interests.  Within Botswana, we expect the reverse  circulation drill programme currently underway at the Tati Project targeting gold and nickel near Francistown, to be completed in the coming days.”

Power Metal/Kavango Resources Joint Venture Structure

The Ditau Project is held by Kanye Resources Pty Ltd, a Botswana joint venture company in which Power Metal and Kavango each company hold a 50% interest. Exploration costs are equally shared. Kavango is the operator.

 

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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