TIDMPOW
RNS Number : 7785T
Power Metal Resources PLC
26 July 2022
26 July 2022
Power Metal Resources plc ("Power Metal" or the "Company")
Uranium Acquisitions - Athabasca Basin Canada
Power Metal Resources plc (LON:POW) the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces an acquisition of additional
uranium properties surrounding the Athabasca Basin in northern
Saskatchewan, Canada (the "Acquisition").
HIGHLIGHTS:
-- Power Metal has acquired outright three uranium properties
covering 271km(2) surrounding the prolific Athabasca Basin in
Saskatchewan, Canada.
-- The cost of the Acquisition is CAD$137,500 (GBP88,872)
payable as CAD$25,000 (GBP16,158) cash and CAD$112,500 (GBP72,714)
through the issue of 5,703,599 new ordinary shares of 0.1p in the
Company ("Ordinary Shares") at an issue price of 1.275p.
-- The Acquisition increases Power Metal's Athabasca uranium
interests to 10 properties covering an area totalling 721km(2)
.
-- Planning is nearing completion for the ground exploration
programmes to commence in the near term at the Tait Hill, Soaring
Bay, Clearwater and Thibault Lake uranium properties, further
information in respect of which was announced on 12 July 2022.
-- In addition to exploration of retained uranium projects, the
Company is working on corporate options in relation to certain of
its Athabasca uranium interests.
Paul Johnson, Chief Executive Officer of Power Metal Resources
commented:
"We have acted quickly to secure this additional uranium package
in the Athabasca Basin area of Saskatchewan, Canada. With these
acquisitions our portfolio of 10 properties now covers a combined
total footprint of 721km(2) . The scale of this holding presents a
significant project package especially given the importance of the
highly prospective uranium exploration in the region. We are also
looking to add further ground to our holdings.
However, that said, it is not merely a move to scale that we
seek, but a strategic uranium package enabling us to develop a
combination of internal exploration projects, and to generate value
through the commercialisation of certain of the properties.
This is the essence of the Power Metal business with metal
discoveries through exploration, combined with corporate activity
to build balance sheet strength. Both strategies individually can
potentially deliver significant value for shareholders, and
together they represent a powerful combination.
Further news updates covering our uranium interests are expected
in the near future."
TRANSACTION TERMS
Power Metal has acquired a 100% interest in three uranium
exploration properties Reindeer Lake, Old Woman Rapids and Porter
Lake as detailed in Table 1 below (the "Properties").
The vendors of the Properties (the "Vendors") are a consortium
led by established local prospector Brian Fowler who was previously
the vendor of the Schreiber-Hemlo properties that Power Metal sold
in exchange for a strategic shareholding in First Class Metals plc,
as announced on 7 September 2021.
As consideration for the 100% acquisition of the properties,
Power Metal will pay the Vendors a total of CAD$137,500 (GBP88,872)
(the "Consideration").
The Consideration is payable as CAD$25,000 (GBP16,158) cash and
CAD$112,500 (GBP72,714) through the issue of 5,703,599 new Ordinary
Shares of 0.1p at an issue price of 1.275p ("Acquisition Shares").
Acquisition Shares will be held for at least 4 months from the date
of this Agreement unless Vendors and Power Metal agree otherwise in
writing.
NEW PROJECT ADDITIONAL INFORMATION
Porter Lake Uranium Property Overview
-- The Porter Lake uranium Property is located approximately
60km south of Sandy Lake, Saskatchewan, and is less than 35km west
of the all-season Provincial highway 914 which services the Key
Lake and McArthur River uranium mines located northeast of the
Property. The Property shares an extended claim border with
Canadian listed ALX Resource Corp. (CSE: AL).
-- The Property covers 108.54 km(2) and is less than 1km
southwest along strike of Baselode Energy Corporation's Catharsis
Project. The Porter Lake Property is located near to the geological
contact between the Western Wollaston and Mudjatik domains - two
highly prolific geological domains where over 2 billion pounds of
Triuranium Octoxide (U(3) 0(8) ) have been discovered.(1)
-- Multiple uranium-rich occurrences have been discovered within
the Property including a large (610m) radiometric anomaly, outlined
in the Government of Saskatchewan 1954 airborne geophysical survey
that was later drill tested by Nova Uranium Mines Ltd. in 1955 and
which returned drill intercepts of up to 0.21% U(3) 0(8) over
0.6m.
Old Woman Rapids Uranium Property Overview
-- The Old Woman Rapids Property is located approximately 80km
northeast of Buffalo Rapids, Saskatchewan, and is less than 60km
west of the all-season Provincial highway 914 which services the
Key Lake and McArthur River uranium mines located northeast of the
Property.
-- The Property covers 129.58 km(2) and is located less than
25km southwest along strike of Baselode Energy Corporation's
Catharsis Project. Like the Porter Lake Property the Old Woman
Rapids Property is located near to the prospective geological
contact between the Western Wollaston and Mudjatik domains.(1)
-- Multiple uranium-rich occurrences have been discovered within
the property including rock grab samples that returned assays of
0.57% and 0.43% U(3) 0(8) and 0.66% and 0.80% Thorium Dioxide
(ThO(2) ) respectively.
Reindeer Lake Uranium Property Overview
-- The Reindeer Lake Property is located approximately 30km
north of Southend, Saskatchewan, and less than 15km west of the
all-season Provincial highway 905. The Property shares a claim
border with privately owned Ripple Exploration Limited's Williams
Lake Property.
-- The Property covers 33.66 km(2) and is centred around the
Saskatchewan Mineral Deposit Index (SMDI) Porter Lake Uraniferous
Pegmatite showing.
-- Several uranium-rich occurrences have been discovered within
the Property including rock grab samples that returned values of up
to 0.084% U(3) 0(8) . The samples were taken following the
completion of an airborne radiometric survey in 1969 carried out by
Sunlite Oil Company Limited that outlined multiple anomalies around
the shores of Porter Lake. Uranium Bloom was noted at several
localities around the lake which were coincident with the airborne
anomalies identified.
URANIUM PROPERTIES - HOLDING STRUCTURE
Power Metal has a 100% subsidiary Power Metal Canada Inc ("Power
Canada"), which acts as the holding Company for certain Canadian
project operations. Power Canada has a wholly owned subsidiary,
102134984 Saskatchewan Ltd, which is the holder of the Company's
Athabasca uranium portfolio.
Table 1: 102134984 Saskatchewan Ltd., Athabasca Basin Property
Holdings*
Project Licence ID Area Area
(Hectare) (km(2) )
Clearwater Uranium
Property MC00015079 1,110 11.1
----------------------- ------------ ----------- -----------
MC00015083 563 5.63
------------------------------------ ----------- -----------
MC00015082 3,191 31.91
------------------------------------ ----------- -----------
MC00015151 760 7.6
------------------------------------ ----------- -----------
MC00015646 761 7.61
------------------------------------ ----------- -----------
MC00015658 1,541 15.41
------------------------------------ ----------- -----------
Tait Hill Uranium
Property MC00015078 1,576 15.76
----------------------- ------------ ----------- -----------
MC00015081 968 9.68
------------------------------------ ----------- -----------
MC00015153 1,530 15.3
------------------------------------ ----------- -----------
MC00015152 1,886 18.86
------------------------------------ ----------- -----------
MC00015647 725 7.25
------------------------------------ ----------- -----------
MC00015648 1,129 11.29
------------------------------------ ----------- -----------
Thibaut Lake Uranium
Property MC00015077 2,206 22.06
----------------------- ------------ ----------- -----------
MC00015659 2,195 21.95
------------------------------------ ----------- -----------
Soaring Bay Uranium
Property MC00015080 1,255 12.55
----------------------- ------------ ----------- -----------
MC00015155 3,375 33.75
------------------------------------ ----------- -----------
MC00015874 748 7.48
------------------------------------ ----------- -----------
MC00015875 2,529 25.29
------------------------------------ ----------- -----------
Cook Lake Uranium
Property MC00015212 984 9.84
------------ ----------- -----------
E-12 Uranium Property MC00015213 1,323 13.23
------------ ----------- -----------
Reitenbach Uranium
Property MC00015214 2,135 21.35
----------------------- ------------ ----------- -----------
MC00015474 1,235 12.35
------------------------------------ ----------- -----------
MC00015655 4,570 45.7
------------------------------------ ----------- -----------
MC00015656 5,322 53.22
------------------------------------ ----------- -----------
MC00015657 856 8.56
------------------------------------ ----------- -----------
MC00015824 528 5.28
------------------------------------ ----------- -----------
Reindeer Lake* MC00015522 3,336 33.36
----------------------- ------------ ----------- -----------
Porter Lake* MC00015561 5,656 56.56
----------------------- ------------ ----------- -----------
MC00015562 5,198 51.98
------------------------------------ ----------- -----------
Old Woman Rapids* MC00015563 4,851 48.51
----------------------- ------------ ----------- -----------
MC00015564 5,063 50.63
------------------------------------ ----------- -----------
MC00015565 3,044 30.44
------------------------------------ ----------- -----------
Total Licence Holding Area 72,149 721.49km(2)
----------- -----------
* Property acquisition announced today - licence transfers in
progress
References
1 - https://baselode.com/projects/catharsis-project/
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 5,703,599 Acquisition Shares to
be admitted to trading on AIM which is expected to occur on or
around 2 August 2022 ("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 1,537,512,064 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.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For further information please visit
https://www.powermetalresources.com/ or contact:
Power Metal Resources plc
Paul Johnson (Chief Executive Officer) +44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat +44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson +44 (0) 1483 413 500
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson +44 (0) 20 7330 1883
NOTES TO EDITORS
Power Metal Resources plc - Background
Power Metal Resources plc (LON:POW) is an AIM listed metals
exploration company which finances and manages global resource
projects and is seeking large scale metal discoveries.
The Company has a principal focus on opportunities offering
district scale potential across a global portfolio including
precious, base and strategic metal exploration in North America,
Africa and Australia.
Project interests range from early-stage greenfield exploration
to later-stage prospects currently subject to drill programmes.
Power Metal will develop projects internally or through
strategic joint ventures until a project becomes ready for disposal
through outright sale or separate listing on a recognised stock
exchange thereby crystallising the value generated from our
internal exploration and development work.
Value generated through disposals will be deployed internally to
drive the Company's growth or may be returned to shareholders
through share buy backs, dividends or in-specie distributions of
assets.
Exploration Work Overview
Power Metal has internal exploration programmes completed or
underway, with results awaited, as outlined in the table below.
Exploration work programmes may also be underway within planned
IPO vehicles where Power Metal has a material interest the findings
from which will be released on their respective websites, with
simultaneous updates through Power Metal regulatory announcements
where required:
www.firstclassmetalsplc.com
www.goldenmetalresources.com
www.firstdevelopmentresources.com
Power Metal also holds a material investment in Kavango
Resources plc with exploration updates available through their
regulatory announcements and on their website:
www.kavangoresources.com
Project Location Current Work Completed Results Awaited
POW or Underway
%
Alamo USA Earn-in Technical reports Analysis of technical
Gold Project to 75% received following reports and potential
excavation of follow-on work programme
multiple test under review.
pits and mapping
& sampling completed.
---------- --------- ----------------------- ---------------------------------
Athabasca Canada 100% Hyperspectral Finalise review of hyperspectral
Uranium data analysis data from 3 properties.
conducted across Prepare for summer exploration
7 properties. programme across 4 properties.
Updating to 7
data rooms for
third party review.
---------- --------- ----------------------- ---------------------------------
Authier Canada Earn-in Property Evaluation Update covering exploration
North to 100% Report completed. plans for target areas
Lithium identified during the
Evaluation.
---------- --------- ----------------------- ---------------------------------
Molopo Botswana 53%(#) Comprehensive Finalise next exploration
Farms data review complete steps and action plan.
and establishment
of data room
for third party
review.
---------- --------- ----------------------- ---------------------------------
Tati Botswana 100% Site visit with Exploration planning
Project mapping of gold underway including further
workings and mapping, sampling and
mine dumps. launch of an RC drill
programme.
---------- --------- ----------------------- ---------------------------------
Victoria Australia 49.9% Diamond drill Final drill programme
Goldfields programme completed. results analysis and
Review of Ajax resource potential analysis
& Berringa mine from former high-grade
remaining resource producing mines in granted
potential. licences.
---------- --------- ----------------------- ---------------------------------
(#) subject to completion of acquisition announced 18.5.22
interest will increase to 87.71%
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
MSCBGGDRXDDDGDL
(END) Dow Jones Newswires
July 26, 2022 06:24 ET (10:24 GMT)
African Battery Metals (LSE:ABM)
Historical Stock Chart
From Mar 2024 to Apr 2024
African Battery Metals (LSE:ABM)
Historical Stock Chart
From Apr 2023 to Apr 2024