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

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

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

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

Highlights:

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

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

 

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

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

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

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

 

FURTHER INFORMATION

Joint Venture Company – RRAL

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

Granted Licences

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

Licence Number

Project Name

Area (km2)

EL007271

 

Blue Whale

133

EL007281

 

Blue Chip

74

EL007285

 

Blue Ribbon

8

EL007301

Mt Bute

85

EL007327

Blue Stocking

60

EL007329

Evergreen

484

EL007385

Sardinia

  4

Total

848

 

Applications

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

 

Licence Application Number

Project Name

Area (km2)

EL007282

 

Blue Sky

489

EL007294

Red Queen

130

EL007328

Blue Yonder

168

EL007330

Blue Angel

202

EL007460

Kilmore West

349

State land within EL007271

 

(EL007505

EL007506

EL007507)

 

 

 

 

 

 

 

(9)

(9)

(8)

EL007540*

(3 competing applications)

 

Outer Ballarat

148

Total

c 1,486

 

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

 

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

EL45/5859

(One competing application)

Paterson

227

EL45/5885

Pilbara/Paterson

70

EL45/5881

(One competing application)

Pilbara/Paterson

33

 

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

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

 

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

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

Highlights:

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

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

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

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

*ref: Navarre Minerals Ltd website

Background Information on Current Programme

Prospects

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

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

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

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

Programme

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

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

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

FURTHER INFORMATION

Joint Venture Company – RRAL

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

Granted Licences

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

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

License Application Number

Project Name

Area (km2)

EL007271

 

Blue Whale

133

EL007281

 

Blue Chip

74

EL007285

 

Blue Ribbon

8

EL007327

Blue Stocking

60

EL007385

Sardinia

  4

Total

279

Applications

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

Licence Application Number

Project Name

Area (km2)

EL007282

 

Blue Sky

489

EL007294

Red Queen

130

EL007301

Mt Bute

85

EL007328

Blue Yonder

168

EL007329

Evergreen

486

EL007330

Blue Angel

202

EL007460

Kilmore West

349

State land within EL007271

 

[EL007505

EL007506

EL007507]

 

 

 

 

 

 

 

[9

9

8]

EL007540*

(3 competing applications)

 

Outer Ballarat

148

Total

c 2,057

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

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

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

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

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

Power Metal Resources #POW – Australia Gold Joint Venture – Further License Grants & Update

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

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

Highlights:

  • RRAL has received formal license grants for a further two of its license applications as follows:
    • The 60 sq km “Blue Stocking” license to the south west of Ballarat (EL007327)
    • The 4 sq km “Sardinia” license to the north of Daylesford (EL007385)
  • Both licenses are granted for a period of five years .
  • Further information in respect of RRAL’s exploration programme covering the new granted licenses will be announced shortly.
  • To date RRAL has now received five granted licenses covering 279 km2 with further license grants awaited.
  • Appointment of David Holden as a Director of RRAL and Jack McInerney as RRAL Exploration Geologist. 

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

“It is good to see the strategic license application footprint steadily converting into granted status and we look forward to the receipt of further grants.

As announced recently, RRAL exploration programmes are now underway targeting a large scale gold discovery or discoveries and we expect to be in a position to announce first exploration results in the near future.

RRAL’s exploration programmes will expand rapidly as more license grants are received and we are taking the steps now to scale up operational capability in Victoria in advance.  As part of this scale up we welcome David Holden, RRAL’s Exploration Manager, as a new Director on the board of RRAL. Dave’s work to date has been key to our rapid business development so far.  We also welcome Jack McInerney, with four years of regional experience at the Ballarat Gold Mine, who joins RRAL as an Exploration Geologist. 

As previously announced, we are also working in parallel on corporate work in respect of the proposed listing of certain core interests of RRAL on the Canadian Capital Markets.” 

FURTHER INFORMATION

Joint Venture Company – RRAL

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

Granted Licenses

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

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

License Application Number

Project Name

Area (km2)

EL007271

 

Blue Whale

133

EL007281

 

Blue Chip

74

EL007285

 

Blue Ribbon

8

EL007327

Blue Stocking

60

EL007385

Sardinia

                   4

Total

279

Applications

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

License Application Number

Project Name

Area (km2)

EL007282

 

Blue Sky

489

EL007294

Red Queen

130

EL007301

Mt Bute

85

EL007328

Blue Yonder

168

EL007329

Evergreen

486

EL007330

Blue Angel

202

EL007460

Kilmore West

349

State land within EL007271

 

[EL007505
EL007506
EL007507]

 

 

 

 

 

 

[9
9
8]

EL007540*

(3 competing applications)

 

Outer Ballarat

148

Total

c 2,057

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

The following application has been made in Western Australia:

EL45/5859

(One competing application)

Pilbara

227 km2

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 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 – 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.

Power Metal Resources #POW – Warrant Update & Extension of Insider Warrants

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

Update Regarding Exercise of Warrants Expiring February 2021

On 18 February 2019 the Company issued warrants (the “February 2019 Warrants”) as part of the refinancing of the Company as outlined below:

Description

Number of Warrants

Exercise Price

Financing Warrants

200,000,000

1.0p

Advisor Warrants

5,000,000

1.0p

Debt Settlement Warrants

6,000,000

0.5p

All February 2019 Warrants carried a two-year life which ended yesterday on 18 February 2021.

Power Metal can now confirm that, save for the 40 million Financing Warrants held by insiders and connected parties, further details of which are provided below (the “Insider Warrants”), the Company has received valid exercise notices for 100% of all the February 2019 Warrants.

The Company is currently processing exercise notices and will provide an Exercise of Warrants market announcement in the coming days. 

Warrant Exercise Proceeds and Working Capital Summary

In total the exercise of the February 2019 Warrants to date has raised an additional £1.68 million for the Company and in total all warrant exercises in 2020/2021 have raised circa £2.9million. 

This inflow of monies has significantly increased the Company’s working capital, including cash and listed investments, which currently stands at circa £3.28 million.

Extension of Insider Warrants

As at 18 February 2021 the following February 2019 Warrants held by Directors or their related parties  remained outstanding (“Insider Warrants”):

Warrant Holder

N umber of Warrants

Exercise Price

Paul Johnson

10,000,000

1.0p

Andrew Bell

10,000,000

1.0p

Red Rock Resources plc

20,000,000

1.0p

The Insider warrants were issued following participation in the February 2019 Financing.

The Company is currently finalising its audited financial statements for the year ended 30 September 2020, which Power Metal expects will be announced to the market in the week commencing 22 February 2021, consequently the Company is in a close period.

In addition the Company is currently managing numerous exploration programmes and corporate activities across its portfolio, including matters pertaining to its Australian gold joint venture, Red Rock Australasia Pty Limited, in which the Company holds a 49.9% interest (with joint venture partner Red Rock Resources plc (LON:RRR) holding 50.1%).

As a result, the February 2019 Warrants held by Paul Johnson (Chief Executive Officer of Power Metal), Andrew Bell (Chairman of Power Metal and Red Rock Resources plc) and those held by Red Rock Resources plc, could not be exercised on the expiry date of 18 February 2021 and may be extended under the warrant instrument, as outlined below.

Under the February 2019 Warrant instrument clause 2.3 provides that should any February 2019 Warrant holder be in the possession of price sensitive information and be thereby precluded from exercising warrant subscription rights, the exercise period shall be extended until 20 business days following the date on which the Warrant holder ceases to be an insider.

Given the level of ongoing operational activity there is a material likelihood that the receipt of price sensitive information could frequently restrict the ability of Paul Johnson, Andrew Bell and Red Rock Resources plc to exercise the February 2019 warrants.

Reflecting the above the Company has extended the Insider Warrants expiry date by three months to a new expiry date of 18 May 2021. 

RELATED PARTY NOTE

The extension of the Insider Warrants held by Paul Johnson, Andrew Bell and Red Rock Resources Plc as outlined above, have been treated as a related party transaction for the purposes of AIM Rule 13.  

Scott Richardson Brown and Edmund Shaw, being the independent Directors for the purposes of the extension of the expiry date of the Insider Warrants held by Paul Johnson and Andrew Bell and Red Rock Resources Plc consider, having consulted with the Company’s nominated adviser, SP Angel, that the extension of the warrant expiry date to 18 May 2021 to such related parties is fair and reasonable insofar as the Shareholders are concerned.

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

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

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

 

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

 

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

 

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (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 – Australia Gold Joint Venture – Exploration Commences

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

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

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

“As promised with the grant of licenses as announced yesterday RRAL have moved quickly to launch ground exploration with further information on the initial programmes outlined below.

Given over 12 million ounces of mined gold in the Ballarat West and Ballarat East mining camp, we are particularly eager to expedite exploration as RRAL targets a major gold discovery in the Victoria Goldfields, Australia.”

Background

RRAL announced on 2 February 2021 the grant of three of its exploration licence applications in Central Victoria, Australia – EL007271, EL7281 and EL7285.

The granted tenements comprise approximately 215km2 and form a key part of RRAL’s central to south Ballarat project group.  These tenements (along with current applications) surround and overlie the existing Ballarat West and Ballarat East mineralized lode systems – a mining camp reported to have produced over 12 million ounces.  Modern production continues today at the Ballarat East mine.

RRAL is beginning work immediately on evaluating previously identified areas of interest within all tenements.  A map showing the granted licenses and providing the location of prospects named below may be viewed on the POW website through the following link:

https://www.powermetalresources.com/p/238/exploration-map-1

INITIAL TARGETED EXPLORATION PROGRAMME

Granted License EL007271

Coincident geochemical and radiometric anomalies from early work along with historical reconnaissance mapping and sampling has already identified three strong prospects in EL 007271 to the south of Ballarat.  These prospects are considered as possible southern extensions to the main lode systems of Ballarat.  All three (O’Laughlin, Scotsburn and Enfield) are a high priority for immediate work.

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

The Scotsburn prospect comprises a more consolidated line of workings for over a kilometre to the well-known Locomotive Extended mine and shafts north of Buninyong (southeast of Ballarat).

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

RRAL has already initiated a comprehensive soil sampling program over the areas in conjunction with detailed field mapping. The sampling is using both traditional MMI (mobile metal ion) low level analytical methods as well as evaluating the efficacy of portable XRF as a cost-effective alternative allowing a significantly higher number of samples to be collected with a shorter turnaround for results. In conjunction with the extensive soil sampling, field mapping and discrete sampling of quartz veins both within workings and newly identified at surface will be undertaken. It is anticipated that the outcomes of the first phase of exploration, if successful, will lead to confirmation that significant mineralization is present and will allow drilling to commence later in the year.

Granted License EL 007285

To the north EL007285 is considered to hold the northern extension of the Ballarat West lode system and further work on compiling historical data into a 3D model to facilitate drill planning is under way.

Satellite Data Analysis

A further exploration tool in use is satellite data from the Aster and Sentinel-2 satellites, where using machine learning, our consultants have trained five statistical classifiers, called Linear Discrimination Functions (LDFs), on the Au occurrences to recognize gold mineralization from 16 spectral abundances unmixed from the Aster mosaic, and have similarly created a classifier from the ten reflective bands (unmixed into 16 spectral abundances) from the Sentinel data.

This satellite thermal and high spatial resolution VNIR/SWIR (visible and near-infrared/short-wave infrared) imagery may be used to extrapolate gold occurrence information out to the rest of the project area. Identification of minerals in the scene from spectral unmixing may also inform geological understanding of the area.

This extra exploration layer, continuously refined, along with geophysics, geochemistry and geological interpretation may improve drill targeting and the odds of discovery in a brownfields environment such as the Ballarat Gold Fields

THE BALLARAT PROJECT AREA

Geology

In general terms, the geology of the Ballarat South project comprises a thick sequence of Ordovician turbidite sediments. The sediments have been folded and subsequently faulted under east/west compression.  During the compressional phase, some brittle deformation occurred, resulting in the development of several reverse faults.

These reserve faults as well as bedding plane slip within shales have acted as conduits for fluid flow from within the metamorphosed sedimentary pile.  Gold hosted quartz veins formed as a result, often in complex arrays of orientations within a broadly mineralized envelope.

Overlying the sediments in part is extensive flows of Tertiary age volcanism.

Previous Exploration

The Ballarat region has seen exploration activity since the initial discovery of gold in the 1850s with mining progressing from surface alluvial mining to deep lead mining to some hard rock mining over a period of 80 years. From the 1980s onwards interest in the area renewed as explorers completed first phase surveys including broad airborne geophysical surveys, soil sampling, and mapping.

Their work included minor exploration drilling focused largely upon the Ballarat East and West lodes.  Whilst they did identify numerous other targets, limited technology for evaluating mineralisation beneath the cover particularly the lava flows restricted much of the exploration.  This coupled with a fluctuating gold price has left much of the region surprisingly underexplored.

As a result, RRAL can now capitalize on the positive results reported in the previous literature and continuously learn from the progress of current exploration in the region, and is fast tracking exploration efforts with an initial focus on already identified prospects.

FURTHER INFORMATION

Joint Venture Company – RRAL

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

Applications

RRAL has lodged applications for sixteen new gold exploration license areas covering approximately 2,336 km2 in the Victoria Goldfields of Australia as follows:

License Application Number

Project Name

Area (km2)

EL007271

(granted)

Blue Whale

133

EL007281

(granted)

Blue Chip

74

EL007282

Blue Sky

489

EL007285

(granted)

Blue Ribbon

8

EL007294

Red Queen

130

EL007301

Mt Bute

85

EL007327

Blue Stocking

60

EL007328

Blue Yonder

168

EL007329

Evergreen

486

EL007330

Blue Angel

202

EL007385

Sardinia

  4

EL007460

Kilmore West

349

State land within EL007271

 

[EL007505

EL007506

EL007507]

 

 

[9

9

8]

EL007540*

(3 competing applications)

Outer Ballarat

148

Total

c 2,336

 

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

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

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 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 – Australia Gold Joint Venture with Red Rock Resources #RRR receives first license grants

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

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

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

“The grant of three licenses marks a highly important moment for the Australia gold joint venture, enabling RRAL to move forward with active exploration in a highly prospective group of licenses in the Victoria Goldfields, centred on the historic mining centre of Ballarat.

We will be publishing early exploration plans shortly, something all parties have been preparing for over a number of months and utilising the RRAL Ballarat headquarters as the centre of the operational work.

In addition we continue to work on corporate activities surrounding the RRAL business, which given the level of interest shown in the Victoria Goldfields and now with the grant of the three licenses, becomes all the more relevant.

Importantly, Power Metal is particularly well funded and is able to immediately invest in gold exploration programmes to build what we believe will be considerable value in this unique and significant opportunity.”

Highlights:

  • RRAL has received formal license grants for three of its license applications as follows:
    • The 133 sq km “Blue Whale” license south and east of Ballarat (EL007271)
    • The 74 sq km “Blue Chip” license west and south of Ballarat (EL007281)
    • The 8 sq km “Blue Ribbon” license north of Ballarat (EL007285)
  • All three licenses are granted for a period of five years
  • RRAL is to launch an expeditious exploration programme further details of which will be announced shortly.

FURTHER INFORMATION

Joint Venture Company – RRAL

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

Granted Licenses

RRAL has received notice that its applications for the three licenses where applications had been expedited have been successful, and that it has now been granted the three licenses nearest to the regional centre of Ballarat, namely EL007271 (“Blue Whale”), EL007281 (“Blue Chip”), and EL007285 (“Blue Ribbon”).

These licenses cover 215 sq km forming an outer ring around Ballarat, along the Ballarat trend and covering high priority areas where RRAL has early drill targets that it is developing.

RRAL Applications

RRAL is also one of four applicants for the 148 sq km tenement EL007540 compulsorily surrendered by the owners of the Ballarat mine which forms a close-fitting inner ring around the Ballarat Mine.  The EL007540 ground is surrounded by RRAL’s now granted tenements and if granted to RRAL would link them.

In total RRAL has now lodged applications for an additional 13 new gold exploration license areas covering approximately 2,121 km2 in the Victoria Goldfields of Australia as follows:

License Application Number

Project Name

Area (km2)

EL007282

Blue Sky

489

EL007294

Red Queen

130

EL007301

Mt Bute

85

EL007327

Blue Stocking

60

EL007328

Blue Yonder

168

EL007329

Evergreen

486

EL007330

Blue Angel

202

EL007385

Sardinia

4

EL007460

Kilmore West

349

State land within EL007271

 

EL007505

EL007506

EL007507

 

 

(9)

(9)

(8)

EL007540*

(3 competing applications)

Outer Ballarat

148

Total

c 2,121

 

* 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.

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 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 – Option Signed – Australia Copper-Gold Acquisition

 

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the Company has secured an exclusive 60-day option in respect of a potential new acquisition of copper-gold focused exploration interests in the Paterson Province in the eastern Pilbara Region of Western Australia.

The Paterson Province is considered highly prospective for gold-copper and base metal mineral systems and is currently of particular focus for resource companies with a significant level of exploration activity underway across the region.  This level of interest follows recent high-profile copper and gold discoveries by Rio Tinto at their Winu property1 and by Greatland Gold plc (LON:GGP) with the Havieron discovery2. Notably, several major groups in search of Tier 1 deposits have entered into joint-venture / farm-in deals with junior explorers to expedite exploratory work. 

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

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

“Power Metal is keen to build its exposure to Australian base and precious metals exploration where there is, in our view, the potential for large scale metal discoveries in a secure and stable operating environment.

Through our joint venture in the Victoria Goldfields, and subject to due diligence, through this acquisition, we will have operating interests in two of the major centres for exploration activity in Australia.

The level of interest in the Paterson Province has been somewhat dramatic after the Winu and Havieron discoveries, much as the success of the Fosterville gold mine in the State of Victoria led to a surge in exploration activity in 2020.

Power Metal is positioning itself to develop a diverse and expansive exploration business in Australia, and this is another important step forward.”

The Option:

–  Power Metal has signed an Option agreement (the “Option Agreement”) to acquire a 100% interest in First Development Resources PTY Ltd (“FDR”), an Australian private company holding the Wallal Project and an option to acquire the Ripon Hills Project, (ownership structure as outlined below).

–  The Option Agreement provides a 60 business-day option period, during which Power Metal may undertake due diligence, and the terms for option exercise to acquire 100% of FDR from its current shareholders (the “Vendors”). 

–  The Option Agreement fee of £30,000 is to be satisfied through the issue to the Vendors of one million Power Metal new ordinary shares of 0.1p each in the Company at an issue price of 3p per share (the “Option Shares”).

FDR and its Business Interests:

–  FDR holds two projects interests; the Wallal Project and the Ripon Hills Project.

–  The Wallal Project currently 100% owned by FDR comprises E45/5816 an exploration licence application covering 390km2 in the western quadrant of the Paterson Province   with a favourable lithospheric setting for substantial base metal deposits consistent with Rio Tinto’s (ASX: RIO) Winu discovery – predominantly copper-gold-silver with a JORC compliant Inferred Resource of 503Mt @ 0.45% Cu equivalent. 

–  FDR also has a right to acquire 100% of the Ripon Hills Project from Great Sandy Pty Ltd (“Great Sandy”) a private Australian Company, (with consideration for the transfer being satisfied by Great Sandy nominees receiving a proportion of consideration outlined below under “Upon Option Exercise”.)  The Ripon Hills Project comprises E45/5088 a granted exploration licence covering 4 2km2 prospective for base metal-gold mineralisation and is proximal to Rumble Resources’ (ASX: RTR) Braeside Project where significant new base metal discoveries have been made. 

Upon Option Exercise:

–  Should Power Metal at its sole volition exercise the Option for the acquisition of FDR the Company will pay initial consideration of A$50,000 in cash (circa £28,304) and £150,000 payable through issue to the Vendors of 5 million new Ordinary Shares at an issue price of 3.0 pence per share (“Initial Exercise Shares”) (note: A$20,000 (circa £11,322) will be used to eliminate shareholder loans in the accounts of FDR and therefore on acquisition FDR will carry no liabilities).  The cash component of the consideration above will be funded from Power Metal existing Australian Dollar cash resources.

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

–  Upon grant of exploration license application E45/5816 (Wallal Project) and the transfer of the granted exploration license E45/5088 (Ripon Hills Project) into FDR a further £100,000 consideration is payable through the issue of 2,857,143 new Ordinary Shares at an issue price of 3.5p each.

–  In addition, upon the grant of exploration license application E45/5816 (Wallal Project) and the transfer of the granted exploration license E45/5088 (Ripon Hills Project) into FDR, Power Metal will issue the Vendors 2,857,143 warrants with an exercise price of 5p per new Ordinary Share and life to expiry of 3 years from the date of Option exercise (“Grant Warrants”).  Should the volume weighted average price (“VWAP”) of Power Metal shares meet or exceed 10.0 (ten) pence for a 5 consecutive trading days Power Metal may serve notice on the Vendors providing 10 trading days to exercise and pay for the Grant Warrants.

–  The Vendors will retain a 2% net smelter royalty (“NSR”) over the licence application E45/5816 and granted licence E45/5088 and Power Metal will have the right to purchase 1% of this NSR for A$1,000,000 payable as cash or in full or part (and at Power Metal’s election) by the issue of new Ordinary Shares based on the Power Metal share volume weighted average price in the 7 trading days prior to date of notification to the Vendors of the NSR purchase.

–  The consideration items outlined above, on Option exercise, will not be paid until the regulatory approvals have been received including any such approval required from the Foreign Investment Review Board, Australia.

–  The Vendors and their professional licensing and geological teams will continue to work with Power Metal following Option exercise to undertake ground exploration and to further build the licence footprint in the Paterson Province.

FURTHER INFORMATION

Wallal Project – E45/5816 – Exploration Licence Application

The Wallal Project comprises a large, well located 390km2 area, in the western quadrant of the Paterson Province. Notably, the Wallal Project has a favourable lithospheric setting for substantial base metal deposits consistent with Rio Tinto’s (ASX: RIO) Winu discovery – predominantly copper-gold-silver with a JORC (2012) compliant Inferred Resource of 503Mt @ 0.45% Cu equivalent1

The tenure covers an area of transported sand cover including linear north west-south east trending aeolian dunes. Furthermore, the Wallal Project is located on an interpreted basin bounding structure known as the Wallal embayment.

Interestingly, the geology on the eastern boundary of the Wallal Project – associated with a ‘gravity ridge’ geophysical anomaly – is similar to the structural setting of Rio Tinto’s Winu discovery (the Anketell Regional Gravity Ridge). Notably, at Wallal there is a 46km strike feature, which is part of a geological structure called the Vines Fault, that is considered highly prospective copper-gold mineralisation.

It is envisaged that potential drilling targets might be identified utilising high precision gravity, seismic and magnetic survey techniques focussing on specific zones within the apparent gravity ridge. 

Ripon Hills Project – E45/5088 – Granted Exploration Licence

The Ripon Hills Project (42km2) contains outcropping Carawine Dolomite rocks of the Archaean Hamersley Group overlying rocks of the Fortescue Group. Furthermore, the Ripon Hills Project is considered prospective for base metal-gold mineralisation associated with deep seated north to north west trending fault structures, as they have the potential to be conduits for various styles of hydrothermal mineralisation.

Ripon Hills is proximal to Rumble Resources’ (ASX: RTR) Braeside Project where significant new base metal discoveries have been made5. Specifically, this is a regional scale, 60km long, fracture zone containing porphyry to epithermal mineralised systems with 45 priority Cu-Au-Zn-Pb-Ag targets and five deposit types delineated. Encouragingly, this materially enhances the prospectivity of the Ripon Hills Project, which is largely under-explored, as the underlying geology is similar.  

Notably, the priority exploration targets within the Ripon Hills Project are interpreted north to north westerly striking deep seated fault structures. Further, these targets have the potential to host various styles of hydrothermal base metal and gold mineralisation, similar to what is apparent in the Braeside Project. Interestingly, mineralisation can occur in the underlying Fortescue Group rocks as well as the Carawine Dolomite.

Exploration Rationale

Having a footprint in the world class Paterson Province in Western Australia has the potential to deliver significant value for shareholders. While the area has excellent mining infrastructure, there are many parts of the region – highly prospective for copper-gold mineralisation – which are under-explored. In turn, this significantly enhances the upside potential as much of the area is masked by surficial cover. 

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

Additional Disclosure

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

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 1,000,000 Option Shares to be admitted to trading on AIM, which is expected to occur on or around 26 January 2021 (“Admission”). The Option Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

Following Admission, the Company’s issued share capital will comprise 1,056,218,972 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

COMPETENT PERSON STATEMENT

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

References:

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

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

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

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

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

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.  

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 – Business Financial Review and Warrant Update

Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce a business financial review and warrant update for shareholders.

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

“Power Metal has multiple exploration programmes underway alongside significant corporate activities in and around certain of our projects.

Given the extent of our activities I would like shareholders to also know that your Company is in a strong financial position and is well funded to complete all its currently planned exploration work, including drilling programmes underway at present.

Moreover, after the current programme of extensive exploration activities to 31 March 2021 are complete and paid for, the Company will still have significant financial resources and remain in a strong position.  This is further explained below with information regarding where we are with business operations, key financial exploration commitments and our underlying financial position.

In addition, I would draw shareholders attention to the “Warrant Update” section below which confirms Power Metal has successfully exceeded the price hurdle to enable acceleration of certain warrants.  Recognising Power Metal’s strong financial position we consider there is no requirement to exercise any right to accelerate warrants at this time.

Finally, the Company notes that in the Final Results for the year ended 30 September 2019 (announced 20 May 2020) reference was made to a planned fundraising in November 2020.  Given the £1 million raised in July 2020 and the receipt of warrant exercise monies since August, there was no need to undertake a fundraising in November 2020.”

BUSINESS AND FINANCIAL REVIEW

Power Metal’s working capital position as at 12 January 2021 was circa £2.72 million including Pounds Sterling, US Dollars, Australian Dollars and Canadian Dollars and the current value of the Company’s listed investments. Power Metal has no debt, and all trade creditor invoices received by 12 January 2021 have been deducted from the working capital figure above.

The Company’s anticipated exploration and corporate spending for the period to 31 March 2021 is currently estimated at circa £0.6 million and as a result following the completion of the period to 31 March 2021 the Company expects to still hold a robust working capital position.

The table below provides a further breakdown of the current operational and the cash funding position of each project in the Power Metal portfolio. For specific larger expenditure items we provide information of the cash commitments expected in the period to 31.3.21.

The inclusion of the table below is designed to increase transparency and detailed disclosure for shareholders enabling a fuller understanding of the cash requirements of the business in the coming months and helping to validate the strength of the Company’s underlying financial position as outlined above.

The assumptions underlying ongoing exploration and corporate costs are subject to change and are provided for guidance only.

Furthermore, should there be additional receipts of warrant monies the Company would be in an increasingly strong financial position and able to further accelerate project activities if deemed appropriate.

Table: Power Metal Detailed 2021 Project Operational and Financial Breakdown:

PROJECT

EXPLORATION FOCUS

POW

INTEREST

OPERATIONAL POSITION

PROJECT FINANCIAL INFORMATION(Cash Costs)

AUSTRALIA

Victoria Goldfields

JV with Red Rock Resources plc (LON:RRR)

 

Gold

49.9%

13 licence applications covering a footprint of 2,336 km2.. Prepared 11 historic project reports including exploration planning and a National Instrument NI 43-101 technical report covering 8 applications. Awaiting initial licence grants for 3 priority licence applications (EL007271/7281/7285) and progressing potential listing plans on a North American stock exchange and other possible joint venture initiatives.

Power Metal has paid in full all contributory costs into the Joint Venture (“JV”) to date. In the period to 31.3.21 we have provided for general cash costs to run the JV Ballarat office and for a step up in exploration activities in Q1 2021 subject to the receipt of granted licences.

BOTSWANA

Ditau Camp Project

SJV with Kavango Resources plc (LON:KAV)

 

Rare Earths

50%

2 licences (1,386km2) with Rare earths potential established from recent exploration work.  First stage orientation work complete and follow up work announced 4.1.21.

Power Metal has made  advance payments of US$150,000 to cover its 2-year sole exploration commitment under the strategic joint venture (“SJV”) agreement ahead of schedule.  Power Metal has also paid its £10,000 initial contribution to corporate restructuring costs for the SJV, with the intention of initiating the process for a potential  listing of the SJV in 2021.

BOTSWANA

Kalahari Copper Belt Project

(SJV with Kavango Resources plc (LON:KAV)

 

Copper

Silver

50%

2 licences (1,294km2 ) directly to the southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries. Soil sampling programme underway with initial samples identifying zinc pathfinder in x-ray fluorescence (“XRF”) analysis. Follow up work announced 23.12.20.

BOTSWANA

Molopo Farms Complex Project

 

Nickel

Copper

PGMs

Up to 50.96%

3 licences (1,780km2) with multiple targets identified from electromagnetic survey and ground geophysics. Drilling of four high profile targets underway with two holes complete and extensive technical analysis underway.  Thick ultramafic zones have been intersected and in hole KKME 1-6 visible sulphides have been identified as announced 11.1.21.

Power Metal is spending US$500,000 to earn into a 40% direct project ownership which along with its 18.26% project holding company interest, will give a 50.96% effective economic project interest to Power Metal.  To date circa US$292,641 has been paid with a further US$207,359 (circa £151,952) included in cash costs to 31.3.21.

CAMEROON

Cobalt Blue Project

 

Cobalt

Nickel

100%

4 licences adjacent to, or within 50km of the Nkamouna/Nada cobalt/nickel deposit.  Review of exploration and commercialisation options reaching an advanced stage.

Further update to follow regarding the Company’s plans and financial commitment.

CANADA

Silver Peak Project

 

Silver

 

Earn -in to 30%

Mineral claims over historical Eureka-Victoria Silver Mine and high grade, intrusion related, polymetallic Ag-Pb-Zn-Cu veins.

Summer 2020 channel sample programme included a delineated bonanza grade silver up to 0.50m @ 14,937 g/t Ag, 3.05 % Cu & 11.95 % Pb. In November, drill hole SP2020-01intersected a rubbly vein zone between 1.52m to 1.83m which assayed 0.31m @ 5,270 g/t (169.5 troy oz/tonne) silver as announced 29.12.20.

Planned recommencement of drilling in Spring 2021.

 

As part of the earn-in to 30% Power Metal has committed to cover CAD$250,000 on exploration in the period to September 2021.  To date CAD $141,048 has been paid covering expected spend to 31.3.21 and leaving CAD$108,952 remaining later in 2021.

THE DEMOCRATIC REPUBLIC OF THE CONGO

Kisinka Project

 

Copper

Cobalt

70%

Exploration licence of 41 carrés miniers (each 84.95 ha) with a 6.8km copper/cobalt anomaly identified.

Geophysics programme launched in late 2020 (as announced 15.12.20) and finalising the conversion of the licence to a Permis d’Exploitation (production license) with a 25-year life.

Advance payments made to cover geophysical programme costs.   Further costs of circa US$30,000 are expected in the period to 31.3.21.

TANZANIA

Haneti Project

JV with Katoro Gold plc (LON:KAT)

 

Nickel

Copper

Platinum Group Metals (‘PGM’)

Gold etc

35%

Large polymetallic land package of c.5,000 km2 including 80km long ultramafic complex with drill ready nickel sulphide/PGM targets.  Currently undertaking Rotary Air Blast drill programme at Haneti (as announced 30.12.20).

Power Metals has already made advance payments towards maiden drill programme costs.  Balancing Power Metal drill costs are expected to be circa US$55,000 in the period to 31.3.21.

USA

Alamo Gold Project

 

Gold

Earn-in up to 75%

Package of mining claims covering c.946 acres prospective for gold following the discovery of native gold nuggets near surface. Follow on work underway (as announced 11.12.20 and after completion of the reconnaissance survey in summer 2020) with further update to market expected shortly.

Power Metal has committed to minimum exploration spend in the 12 months to July 2021 of US$100,000, of which US$50,000 has been paid and a further US$50,000 is expected in the period to 31.3.21.  In addition, a further US$25,000 of property payments to the vendor were made in December 2020 in accordance with the earn-in commitment.

 

WARRANT UPDATE

On 10 December 2019 Power Metal announced an Equity Placing and Subscription which included the grant of 175,000,000  warrants exercisable at a price of at 0.70p per new ordinary share of 0.1 pence each in the Company with an exercise period ending on 10 December 2021, (the “Financing Warrants”). 

The Financing Warrants were subject to an acceleration clause whereby should the volume weighted average share price (“VWAP”) exceed 2.25p for 10 consecutive trading days, the Company may write to warrant holders providing 10 working days’ notice of accelerated exercise, with 15 working days thereafter for payment.

The Company can confirm that in the 10 consecutive trading day period of 24 December 2020 to 11 January 2021 the Power Metal VWAP exceeded 2.25p and therefore the Company has the right to accelerate any unexercised Financing Warrants.

For the avoidance of doubt Power Metal is not at this time proposing to utilise the above acceleration clause.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.  

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 – Australia Gold JV – New Presentation

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to confirm a new presentation has been prepared for the Australia gold joint venture, focused on the Victoria goldfields.

This presentation may be accessed through the following link on the Company’s website:

https://www.powermetalresources.com/Uploads/POW_Australia.pdf

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 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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