TIDMPOW
RNS Number : 1013Q
Power Metal Resources PLC
24 February 2021
24 February 2021
Power Metal Resources PLC
("Power Metal" or the "Company")
Exercise of Ontario Option - Coco East Property
Power Metal Resources PLC (LON:POW) the AIM listed metals
exploration and development company is pleased to announce that
following due diligence work the Company has exercised its option
to acquire the Coco East Property ("Coco East" or the "Property")
located on the prospective Schreiber-Hemlo Greenstone Belt in
north-western Ontario, Canada.
Coco East is the second of four gold exploration properties upon
which the Company has an exclusive option to acquire a 100%
interest, (the "Option") (as announced 26 January 2021) and follows
the McKellar option exercise which was announced 18 February
2021.
Paul Johnson Chief Executive Officer of Power Metal Resources
plc commented:
"Exercising the Option over the Coco East Property further
strengthens Power Metals' landholding in Ontario, following
directly on from the acquisition of the McKellar Property which was
announced last week.
Coco East is sited upon the eastern end of the Big Duck Lake
Porphyry intrusive which is associated with over twenty known gold
and/or base metal occurrences including significant gold
intersections which were drilled in a neighbouring property during
2017. The property is also directly east of Superior Lake
Resources' Pick Lake / Winston Lake Zinc Project which is currently
advancing towards a high grade zinc mine restart.
We are continuing our due diligence review of the remaining two
option properties and will provide a further update in due course
."
COCO EAST PROPERTY OVERVIEW
- Located upon the Schreiber-Hemlo Greenstone Belt, Coco East
sits at the eastern end of a 4.5km long by 1km wide quartz feldspar
porphyry intrusion (the 'Big Duck Lake Porphyry') that can be
associated with up to twenty-two known gold and/or base metal
occurrences.
- Geology of the property consists of intrusive porphyry,
ultramafic, metavolcanic and metasedimentary rock packages
prospective for both gold and volcanogenic massive sulphide ("VMS")
style copper-lead-zinc-silver mineralisation.
- Regional magnetics survey data shows distinct areas of
interest within the property including magnetic highs associated
with the eastern end of the Big Duck Porphyry and magnetic ridges
which may be indicative of structural faulting and deformation
associated with the intrusive event.
- Located approximately 3.5km east of the Coco-Estelle Deposit
where diamond drilling during 2017 intersected significant
intervals of gold mineralisation including 11m @ 1.96g/t Au from
42m and 5m @ 5.9g/t Au from 63m.(1) This is part of the Big Duck
Project held by Canada listed CBLT Inc (TSX-V:CBLT) which abuts the
Coco western boundary.
- Also 8.4km east of Australian listed Superior Lake Resources
(ASX:SUP) high-grade Pick Lake / Winston Lake Zinc Project which
has a Resource of 2.35 Mt at 17.7% Zn, 0.9% Cu, 0.38 g/t Au and 34
g/t Ag and for which a mine re-start Bankable Feasibility Study was
published in August 2019. (2)
- Three historical drill holes are known to exist within the
centre the property (on three Claims), these were drilled by
Falconbridge Copper Corporation in 1984. Drill hole BD6 is reported
to have assayed up to 1.74g/t Au although the exact nature of this
intersection has yet to be verified by obtaining the historical
core logs. The remainder of the property is considered under
explored.
- Situated approximately 20 km due north of the town of
Schreiber, Ontario on the Trans-Canada highway. Access to the
property is via an old logging road and all-terrain vehicle ("ATV")
trails. Big Duck Lake is located on the western side of the
property.
COCO EAST CLAIM STATUS
- Consists of a total of 30 Single Cell Mining Claims ("Claims")
covering a total area of circa 6.4km(2) .
- Claims are valid through to 20 August 2022 upon which they can
be renewed on an annual basis. For renewal the Coco East Claims
will require an aggregate work spend of CAD$12,000 (circa GBP6,912)
prior to the individual Claim renewal dates.
ACQUISITION TERMS
The vendors of the Option (the "Vendors") are a consortium led
by established local prospector Brian Fowler who was the Vendor of
the Hemlo North Gold Project acquired by Power Metal as announced
on 21 January 2021.
In exercising the Option to acquire a 100% interest in the Coco
East Property POW will make the following cash and equity
consideration:
Property Name Cash (CAD$) POW Shares Note: POW Total Consideration
(CAD$) Acquisition (CAD$)
Shares to
be issued
Coco East 30,000 30,000 576,000 60,000
------------ ----------- ------------- --------------------
The POW shares payable as consideration are new ordinary shares
of 0.1p each in the Company at an issue price of 3.0 pence per
share ("Acquisition Shares"). The cash costs of the acquisition are
funded from Power Metal's existing Canadian Dollar cash
account.
The Vendors retain a 2% net smelter royalty ("NSR") on Coco
East, Power Metal may purchase 1% of the NSR, at any time, by
making a cash payment to the Vendors of CAD$500,000.
The Vendors will continue to work with Power Metal in the local
management of any new properties acquired through this transaction;
the development and implementation of exploration plans and the
identification of further new opportunities.
EXPLORATION PLAN
- Ongoing exploration spend will be at the discretion of Power
Metal as the 100% owner of Coco East.
- Preliminary exploration work is expected to include both
remote sensing data interpretation and ground-based fieldwork with
systematic soil sampling and geophysics expected to yield defined
targets for future drill testing.
- The Province of Ontario has an established mineral exploration
industry with a large number of local exploration contractors that
could be engaged to fulfill the planned work on a cost-effective
basis.
Admission And Total Voting Rights
Application will be made for the 576,000 Acquisition Shares to
be admitted to trading on AIM, which is expected to occur on or
around 2 March 2021 ("Admission"). The Acquisition Shares will rank
pari passu in all respects with the ordinary shares of the Company
currently traded on AIM.
Following Admission, the Company's issued share capital will
comprise 1,133,718,730 ordinary shares of 0.1p each. This number
will represent the total voting rights in the Company and may be
used by shareholders as the denominator for the calculation by
which they can determine if they are required to notify their
interest in, or a change to their interest in, the Company under
the Financial Conduct Authority's Disclosure and Transparency
Rules.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been
read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM,
FGS), who is a qualified geologist and acts as the Competent Person
under the AIM Rules - Note for Mining and Oil & Gas Companies.
Mr O'Reilly is a Principal consultant working for Mining Analyst
Consulting Ltd which has been retained by Power Metal Resources PLC
to provide technical support.
Reference Sources
1: GTA Resources and Mining Inc announcement, 29 January 2018
https://www.gtaresources.com/assets/jan-29-2018-big-duck-final-re-run-gold-sample.pdf
2: Superior Lake Resources Pick Lake / Winston Lake Zinc
Project:
https://superiorlake.com.au/pick-lake-winston-lake-zinc-project/#::text=The%20Project%20is%20a%20high,
ASX%20announcement%2028%20August%202019
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
Power Metal Resources plc
Paul Johnson (Chief Executive Officer) +44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat +44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson +44 (0) 1483 413 500
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson +44 (0) 20 7330 1883
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals
exploration and development company seeking a large scale metal
discovery.
The Company has a global portfolio of project interests
including precious metal exploration in North America and Australia
together with base and strategic metal exploration in Africa.
Project interests range from early stage greenfield exploration to
later stage prospects currently the subject of drill
programmes.
The Board and its team of advisors have expertise in project
generation, exploration and development and have identified an
opportunity to utilise the Company's position to become a leader in
the London market for investors wishing to gain exposure to
proactive global metals exploration.
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