TIDMPOW
RNS Number : 4373F
Power Metal Resources PLC
16 July 2021
16 July 2021
Power Metal Resources plc
("Power Metal" or the "Company")
Agreement - Canadian Lithium Properties
Power Metal Signs an Agreement to Earn-in to a 100% Interest in
Lithium Exploration Properties in Quebec, Canada
Power Metal Resources plc (LON:POW), the AIM listed metals
exploration and development company, is pleased to announce that
the Company's 100% owned Canadian subsidiary Power Metal Resources
Canada Inc. ("Power Metal Canada"), has signed an earn-in agreement
(the "Earn-in Agreement") through which it may acquire a 100%
interest in two Canadian lithium pegmatite exploration properties
(the "Properties").
The Properties are highlighted on a map held on the Company's
website and which may be viewed on the following link:
https://www.powermetalresources.com/quebec-lithium-properties/
HIGHLIGHTS:
- Power Metal Canada may earn-in to a 100% interest in two
lithium exploration properties, Authier North and Duval East,
situated in the prolific Val D'Or mining camp in Quebec,
Canada.
- Authier North Property is adjacent to Sayona Mining's (ASX:
SYA) flagship Authier Lithium Project which has reported JORC
compliant Total Reserves of 12.1Mt at 1.0% Lithium Oxide (0.55%
Li2O cut-off grade). Sayona has a current market capitalisation of
c.AUD$393 million.
- Duval East Property is immediately adjacent and east of a
northwest-southeast trending lithium pegmatite dyke which was
drilled in 1955 with reported intersections equivalent to to 2m @
1.38 Li(2) O(1) . The easternmost historical drill hole on this
lithium bearing pegmatite dyke falls within the Duval East Property
boundary and the dyke is postulated to extend into the claim.
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc, commented:
"Today's announcement brings a focussed and high-impact lithium
opportunity into the Power Metal Canada business.
We believe that lithium is an important strategic commodity to
have within our portfolio. However, as an exploration and
development company what matters most is the quality of
opportunity, which we think we have with these two Earn-in
properties.
One property is situated adjacent to a major lithium Reserve
that offers significant exploration potential and the second
property is interpreted to host the open eastward extension of a
historical lithium deposit delineated in the 1950s, which holds
potential subject to further drilling."
FURTHER PROPERTY INFORMATION
The Earn-in Agreement announced today concerns two properties,
Authier North and Duval East. Both properties are situated in the
prolific Val'd'Or mining camp approximately 45km northwest of the
city of Val-d'Or and approximately 500km northwest of Montreal,
Quebec.
Quebec is recognised as the sixth highest ranking mining
jurisdiction in the world, in the Investment Attractiveness Index
in the 2020 Fraser Institute - Annual Survey of Mining
Companies.
Quebec provides incentives for exploration and development
companies within the province which include significant tax credits
on all eligible exploration expenses incurred within the province
on a annual basis.
Authier North Property
The Authier North Property consists of fifteen (15) mineral
claims covering an area of approximately 560-hectares and is
considered to be prospective for lithium-pegmatites and base metal
mineralisation.
The Authier North Property shares an extended claim border with
Sayona Mining's Authier lithium project which hosts a JORC (Joint
Ore Reserves Committee) compliant Total Reserve of 12.1Mt at 1.0%
Li(2) O (Lithium Oxide).
Sayona Mining's shareprice (ASX: SYA) has increased eight-fold
within the last year and currently has a AUD$393 million market
capitalisation. Sayona Mining published a Definitive Feasibility
Study ("DFS") on 11 November 2019 covering their flagship Authier
Lithium Project. This DFS highlighted a net present value (discount
factor 8%) of CAD$216 million and a pre-tax internal rate of return
at 33.9%.
Additionally, in January 2021, Sayona announced a strategic
partnership and offtake agreement with Piedmont Lithium Limited
(ASX:PLL, Nasdaq:PLL) which includes a 25% ownership stake in
Sayona Quebec (a wholly owned subsidiary of Sayona Mining), as well
as an offtake agreement for 60,000 tpa or 50% of future production
(whichever is the greater) from the Authier lithium project.
Sayona's Authier lithium project consists of a spodumene
pegamatitic intrusion which dips to the north and it is postulated
into the Authier North Property.
Very little historic exploration has been completed on the
Authier North Property, with reports of five short boreholes (four
of which returned elevated lithium and nickel assays) and only 4
rock samples which returned strongly anomalous chromium and nickel
results (up to 0.42% Cr(2) 0(3) (Chromium (III) Oxide), and 0.21%
nickel).
The Company's planned exploration will include geophysical
surveys which aim to model the possible down dip extension of the
lithium bearing pegmatite onto the Authier North Property.
Duval East Property
The Duval East Property consists of one (1) mineral claim
covering an area of approximately 20-hectares and is located 3km
east of the Authier North Property. Duvel East is immediately
adjacent to and holds the postulated eastern extension to, a lithum
bearing pegnamtite dyke that was drilled over an open 600ft strike
length in 1955. With historical drill intersections of up to to 2m
@ 1.38 Li(2) O lithium was confirmed at the deposit but a compliant
mineral resource estimate has yet to be established and historical
mapping shows there is potential for the dyke to extend eastwards
further into the property.
The pegmatite dyke trends in a northwest-southeast direction and
remains open on its eastern end which falls within the Duval East
Property boundary. The Company's planned exploration on the
property may include diamond drilling testing for extensions of the
lithium bearing pegmatite dyke within the Duval East Property.
TRANSACTION TERMS
The Vendor of the Properties is Eagle Ridge Mining Limited,
Barrie, Ontario, Canada.
The Earn-in terms are as follows:
Year 1 Payments
On signing of the Agreement Power Metal will, on behalf of Power
Metal Canada, make initial earn in payments to the Vendors
including a cash payment of CAD$15,000 (circa GBP8,777) and a share
based payment of CAD$50,000 (circa GBP29,257) through the issue of
1,063,891 new ordinary shares of 0.1p each in Power Metal at a
price of 2.75p per share ("new Ordinary Shares")("Initial Earn-in
Shares").
During the first year Power Metal must expend CAD$25,000 (circa
GBP14,628) on exploration costs on the Properties.
Year 2 Payments
Power Metal will make a cash payment of CAD$25,000 to the
Vendors and a further share based payment of CAD$50,000 with the
number of new Ordinary Shares based on the ten consecutive trading
day volume weighted average Power Metal share price prior to the
delivery of written confirmation to the Vendors that Power Metal
Canada wishes to proceed to year 2 payments.
During the second year Power Metal must expend CAD$50,000 on
exploration costs on the Properties.
Year 3 Payments
Power Metal will make a cash payment of CAD$25,000 to the
Vendors and a further share based payment of CAD$75,000 with the
number of new Ordinary Shares based on the ten consecutive trading
day volume weighted average Power Metal share price prior to the
delivery of written confirmation to the Vendors that Power Metal
Canada wishes to proceed to year 3 payments.
During the third year Power Metal must expend CAD$100,000 on
exploration costs on the Properties.
Overall
In summary the cash, Power Metal share payments and project work
commitments under the Agreement are detailed in the table
below:
Period Cash Payable Share Payments Work Commitment Projects Ownership
(CAD$) (CAD$) (CAD$) (%)
Year 1 15,000 50,000 25,000 0%
------------- --------------- ---------------- -------------------
Year 2 25,000 50,000 50,000 0%
------------- --------------- ---------------- -------------------
Year 3 25,000 75,000 100,000 100%
------------- --------------- ---------------- -------------------
TOTAL CAD$ $65,000 $175,000 $175,000
------------- --------------- ---------------- -------------------
TOTAL GBP GBP38,034 GBP102,399 GBP102,399
(at current
translation
rate)
------------- --------------- ---------------- -------------------
Should all payments be made above the total cost to Power Metal,
on behalf of Power Metal Canada, would be GBP242,832 over a maximum
3 year period, and following that expenditure Power Metal Canada
will hold a 100% interest in the Properties.
Power Metal Canada can elect to accelerate all expenditures
should it wish, at any time, to allow earlier completion of the
Earn-in.
There is an existing 1.00% net smelter royalty ("NSR") over the
Properties that will remain in place. In addition on completion of
the Earn-in Power Metal will grant to the Vendors a further 1.25%
NSR (the "Vendor NSR") and 0.5% of the Vendor NSR may be bought
back by Power Metal Canada at any time for a cash payment of
CAD$500,000. In total therefore prior to any buyback, the total
NSRs amount to 2.25% over the Properties.
References:
(1) Canton de LA MOTTE Township, Rapport Geologique - 160, 1976
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.
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 1,063,891 Initial Earn-in
Shares to be admitted to trading on AIM which is expected to occur
on or around 23 July 2021 ("Admission"). The Initial Earn-in 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 1,178,896,891 ordinary shares of 0.1p each. This number
will represent the total voting rights in the Company and may be
used by shareholders as the denominator for the calculation by
which they can determine if they are required to notify their
interest in, or a change to their interest in, the Company under
the Financial Conduct Authority's Disclosure and Transparency
Rules.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
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 large scale metal
discoveries.
The Company has a global portfolio of project interests
including precious, base and strategic metal exploration in North
America, Africa and Australia. Project interests range from early
stage greenfield exploration to later stage exploration prospects
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
AGRUVRARAKUBAUR
(END) Dow Jones Newswires
July 16, 2021 02:00 ET (06:00 GMT)
African Battery Metals (LSE:ABM)
Historical Stock Chart
From Apr 2024 to May 2024
African Battery Metals (LSE:ABM)
Historical Stock Chart
From May 2023 to May 2024