TIDMPOW
RNS Number : 9183T
Power Metal Resources PLC
27 July 2022
27 July 2022
Power Metal Resources plc
("Power Metal" or the "Company")
Quarterly Business Update
Power Metal Resources PLC (LON:POW) the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces the quarterly business
update for shareholders.
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc, commented:
"First Class Metals, into which we sold our Schreiber-Hemlo
interests is nearing its planned listing; we recently conditionally
disposed of our stake in the Botswana Kanye JV to our partner
Kavango Resources; and we have Golden Metal Resources (Nevada, USA
focused) nearing completion of its IPO preparations, with First
Development Resources' planned listing process (Australia focused)
well underway. We expect more crystallisation events to occur from
our still extensive portfolio.
Crystallisation of value into strategic investments bolsters our
balance sheet considerably and offers the potential for
considerable capital gains, alongside providing a major pool of
available working capital to the Company. However, what enthuses us
even more is the future direction of the Company and the
exploration potential offered from within our retained
portfolio.
We would reinforce our commitment to growing a uranium focus in
the Company, with the energy metal slated for a continuing
resurgence as the world continues in its journey towards
significantly increased reliance on nuclear power generation. Going
forward, we will also focus our energy and resources on the more
rapid advancement of certain retained exploration projects,
including notably our two remaining Botswana interests in the
Molopo Farms Complex and Tati Greenstone Belt projects."
GUIDANCE FOR READERS
The tables below include the latest position of each project and
our operational plans over the course of the next three months.
Projects are grouped into the following categories to provide
additional clarity to investors on the project status and near term
plans:
- Priority exploration projects
- Project disposals or IPO processes underway
- Projects with next steps to be determined pending receipt of further information
Below the project tables, additional information is provided
covering new opportunities, business management, finance and
compliance.
Readers are also encouraged to review Power Metal's corporate
website and presentation which are regularly updated and are
available through the following links:
Website: www.powermetalresources.com
Corporate Presentation:
https://www.powermetalresources.com/presentation/
PRIORITY EXPLORATION PROJECTS
Project Latest Position & Forward Plans
Athabasca Uranium
Saskatchewan, Canada Power Metal currently holds 7 properties
(Uranium) with 3 newly acquired properties to be transferred
POW 100% to it, as announced 26 July 2022 and which
together cover 721km(2) surrounding the
Athabasca Basin.
Detailed data compilation has been completed
and external datarooms opened for third
parties in respect of 7 properties. We have
completed hyperspectral data analysis over
4 properties with the findings leading to
the planned launch of ground exploration
at those properties shortly.
In addition to exploration of retained uranium
projects, the Company is working on corporate
options in relation to certain of its Athabasca
uranium interests.
---------------------------------------------------------------------------------------
Authier North
Quebec, Canada The Company continues to monitor progress
(Lithium) being made by Sayona Mining (ASX: SYA) who
POW earn-in to 100% control the neighbouring Authier Lithium
Project.
On 12 July 2022 Power Metal announced the
decision to proceed into year 2 of the earn-in
to a 100% interest in Authier North.
Ground exploration plans are being finalised
with work expected to commence this quarter.
---------------------------------------------------------------------------------------
Molopo Farms Complex Power Metal secured a conditional agreement
Project to acquire an additional 58.7% of shares
Botswana in project partner Kalahari Key Mineral
(Nickel - Copper Exploration Pty Limited ("KKME") as announced
- Platinum Group on 18 July 2022:
Element) https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition
POW: Effective Economic /15458701
Interest is currently This acquisition, conditional on regulatory
52.6% increasing approval, will see Power Metal holding 87.71%
to 87.71% subject of KKME which will hold 100% of the Molopo
to completion of Farms Complex Project ("Molopo Farms").
the KKME shares The next step is diamond drilling to follow
acquisition & restructuring up on the discovery of nickel sulphides
announced 18.5.22. in the first drill campaign and seeking
an economic and large-scale discovery.
Planning is underway now for this next drill
programme which, subject to completion of
the agreement to acquire an additional 58.7%
of shares in KKME, we expect to commence
in the autumn.
Simultaneously, we have prepared and opened
a Molopo Farms dataroom providing all project
information for interested third parties
to review. All such engagements will be
under non-disclosure arrangements at this
time.
---------------------------------------------------------------------------------------
Tati Project
Botswana The Company announced the results from a
(Gold - Nickel) maiden drill programme at the Tati Project
POW: 100% on 4 April 2022 and this may be viewed through
the following link:
https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-drill-prog
ramme-results/15396365
Drilling confirmed 3 metres of 5.17g/t gold
from 9 metres downhole, representing shallow
gold mineralisation. Analysis led to additional
gold prospective ground being covered by
a new prospecting licence ("PL") application,
which was granted in April 2022 as announced
to the market:
https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-new-licenc
e-granted/15422038
Recently the Company's technical team visited
the new PL to conduct site inspections and
mapping, confirming extensive historical
gold workings at the Cherished Hope gold
mine as well as large fines dumps which
may be capable of near-term revenue generation
through toll processing of gold:
https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-exploratio
n-update/15543783
As a result of the findings from the site
visit undertaken, we have expedited plans
including further volumentric analysis and
gold sampling of fines dumps and a reverse
circulation ("RC") drill programme is expected
to commence in September/October of this
year.
---------------------------------------------------------------------------------------
PROJECT DISPOSALS OR IPO PROCESSES UNDERWAY
Note: other project packages within the Power Metal portfolio
are also in earlier stages of spin-out preparations in addition to
those listed below.
Project Latest Position
Kanye Resources On 8 July 2022 Power Metal announced the
Conditional Disposal conditional disposal of its Kanye Resources
to Kavango Resources interest to its joint-venture partner Kavango
Resources plc (LON:KAV)("Kavango").
The disposal is subject to the publication
of a prospectus by Kavango including provision
for the transaction.
Full terms and disposal consideration payable
to Power Metal may be viewed in the announcement
linked below:
https://www.londonstockexchange.com/news-article/POW/conditional-disposal-of-kanye-resource
s-interests/15532470
--------------------------------------------------------------------------------------------
First Class Metals Power Metal currently has an interest of
PLC (FCM) 36.3% in FCM following the FCM pre-IPO financing
Schreiber-Hemlo, which raised GBP486,000 in 2021. FCM is
Ontario, Canada seeking a listing on the London capital
(Gold - Base Metals) markets which is expected to occur shortly.
POW c.36% First Class Metals has 100% ownership of
7 claim blocks covering over 180km(2) in
the Hemlo - Schreiber greenstone belt of
Ontario, Canada.
The North Hemlo flagship property covers
over 90km(2) and sits just north of Barrick
Gold Corp's Hemlo gold mine. The North Hemlo
property has abundant showings of gold/copper/zinc/nickel.
In the east of the North Hemlo property
sits the Pickle Lake joint venture with
Palladium One (TSX:PDM) which is the subject
of a current drill programme focussing on
nickel/copper targets.
--------------------------------------------------------------------------------------------
Golden Metal Resources Power Metal provided a Golden Metal Resources
PLC (GMR) ("Golden Metal") company update on 19 July
Nevada, USA 2022 which may be viewed below:
Gold - Base Metals https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-company-update/
POW 83.13% 15547371
Following the pre-IPO financing which raised
GBP750,000 in late 2021 preparation for
the planned listing of Golden Metal is near
to completion and this will lead into the
IPO financing, and subject to regulatory
approvals, a planned listing on the London
capital markets expected to occur this quarter.
Golden Metal is active from an exploration
perspective with an induced polarisation
("IP") survey underway over the Pilot Mountain
project and a high-resolution soil geochemical
survey active across the Garfield project.
--------------------------------------------------------------------------------------------
First Development FDR has undertaken multiple exploration
Resources Ltd (FDR) and corporate work streams in recent months.
Western Australia A detailed company update will be released
(Gold - Copper - to the market shortly providing an update
Rare Earth Elements which will cover:
- Uranium - Lithium) * Final preparations for the Wallal project diamond
POW: 62.12% drill programme
* Exploration findings from the Braeside West, Ripon
Hills and Selta projects
* Update with regard to the planned listing process now
fully underway following the completion of a
GBP1.125m pre-IPO financing as announced in June
2022.
--------------------------------------------------------------------------------------------
New Ballarat Gold Through its Australian operating subsidiary,
Corporation PLC Red Rock Australasia Pty Ltd, NBGC has a
(NBCG) substantial licence footprint within the
Victoria, Australia Victoria Goldfields, Australia. This comprises
(Gold) 14 granted exploration licences covering
POW: 49.9% 50.1% 1,832km(2) and 5 licence applications covering
JV Partner Red Rock 493km(2) .
Resources PLC LON:RRR) A planned listing of NBGC has taken longer
than anticipated but remains the focus of
the company with a potential planned listing
in the London or Australian capital markets
later this year.
Much work has been undertaken recently to
advance the licences held in NBGC including
continuing exploration work by our in-country
operational team. Also through the advancement
of licence applications into granted status,
which has now been achieved for 79% of the
application footprint.
Recent licence grants include EL007330 located
northeast of Ballarat and this newly granted
licence covers the Ajax gold mine which
historically produced 312,789oz gold at
an average grade of 14.8g/t Au in the 1920s
("Ajax"). Further information in our announcement
of 24 May 2022:
https://www.londonstockexchange.com/news-article/POW/victorian-gold-fields-grant-of-key-lic
ences/15465313
The addition of the Ajax gold mine above
was further supplemented by a transaction
to acquire EL5535 which covers the historical
Berringa gold mine just west of Ballarat
which has historical production of 293,250
ounces of gold from 1898-1952, at an average
grade of 8.3g/t ("Berringa"). Further information
in our announcement of 6 July 2022:
https://www.londonstockexchange.com/news-article/POW/acquisition-of-historic-berringa-gold-
mine/15528927
The mined sections of the Ajax and Berringa
trends are thought by RRAL to be among the
top half dozen historic underground gold
mines of Victoria and contain significant
exploration targets. Both mine areas are
within 30km of existing and not fully utilised
treatment plants.
Work is currently being undertaken to better
understand historical mining activities,
residual gold resource potential and drill
targets at both Ajax and Berringa, with
a view to diamond drilling later this year.
This work is being undertaken alongside
various work streams in respect of the planned
listing.
--------------------------------------------------------------------------------------------
PROJECTS WITH NEXT STEPS TO BE DETERMINED
Project Latest Position & Key Forward Events
Alamo Gold Project
Arizona, USA Various technical reports have now been
(Gold) received and reviewed following work undertaken
POW: Earn-in to at the Alamo gold project in Arizona.
75%
The findings are inconclusive to date and
require additional work to be undertaken
to further the technical understanding of
the project's potential.
We are working with our partners in Arizona
to review the technical work required and
the costs attaching. We are also looking
at the earn-in which may need to be restructured
given the findings thus far.
-----------------------------------------------------------------------------------------------
Gawler Project The Gawler Project comprises two licence
South Australia applications (submitted October 2021 and
(Gold, Copper) covering 1,994km(2) ) details of which may
POW: 100% be viewed through the following link:
https://www.londonstockexchange.com/news-article/POW/new-australia-copper-gold-opportunity/151
89456
Recently Power Metal Resources Australia
Pty Limited, Power Metal's wholly owned
operating company, was advised that the
Department of Energy and Mining ("DEM")
proposed granting of one licence application
ELA2021/00163 (999km(2) ) for a period of
6 years. The initial expenditure commitment
for the licence is AUD$100,000 in total
over 2 years, and Power Metal has paid AUD$23,055.10
in respect of first year rent and administration
fees to the DEM. The Company now awaits
final regulatory sign-off and release of
granted licence documentation.
Internal technical review by the Power Metal
team has been undertaken and an initial
exploration programme is being finalised
in preparation for the launch of ground
exploration following receipt of the granted
licence documentation.
Power Metal awaits progress with regard
to the granting of ELA2021/00162 (995km(2)
) and will similarly launch planned ground
exploration subject to the granting of the
licence.
-----------------------------------------------------------------------------------------------
Haneti Project
Tanzania Drill results were announced for the Haneti
(Polymetallic) Project in May 2022. Drilling identified
POW: 35% (65% JV the targeted nickel, but not in economically
Partner Katoro Gold significant intersections. The technical
plc LON:KAT) results from the programme are expected
to lead to further target development at
Haneti for ongoing exploration.
In addition data from the programme is now
being made available to third parties previously
interested in the Haneti project, to augment
information previously supplied up to Q1
2020.
Power Metal is keen to progress the Haneti
project through further targeted exploration
and/or corporate activity.
-----------------------------------------------------------------------------------------------
Silver Peak Project Liaison with our Canadian partner to finalise
British Columbia, commercial initiatives for the project continue.
Canada An important next step is a planned site
(Silver) visit which is scheduled for early August
POW: 30% 2022, which is expected to assist expediting
matters.
-----------------------------------------------------------------------------------------------
NEW OPPORTUNITIES
Project Latest Position
Power Metal Resources The near-term focus will remain on the exploration
plc of existing interests and the crystallisation
of value through the potential listing of
spin-out vehicles and project value generative
disposals.
The primary acquisition focus for the foreseeable
future is uranium projects, however the
Company does not rule out other acquisitions
of exceptional opportunities.
---------------------------------------------------
Power Capital Investments Power Capital Investments ("Power Capital")
Limited continues to work on a number of initiatives
Global Resource targeting individual or smaller corporate
Project Incubator owned opportunities.
(Multi-Commodity) This is occurring against a backdrop of
POW: 100% intensive activity across the Power Metal
business and will for now remain a modest
source of activity as we seek to advance
our major business interests.
---------------------------------------------------
MANAGEMENT - FINANCIAL - COMPLIANCE
Project Latest Position
Board The Board currently comprises:
Scott Richardson Brown - Interim Non-executive
Chairman
Paul Johnson - Chief Executive Officer
Ed Shaw - Non-executive Director
Power Metal has been engaging with a number
of potential board candidates for Power
Metal and associated companies.
We have successfully secured full boards
for Golden Metal and First Development Resources
in advance of their planned listings.
For Power Metal we are undertaking due diligence
on new candidates and hope to be in a position
to announce new appointments in the near
term.
------------------------------------------------------------------------
Management and Power Metal has built a strong operational
Team team which along with the board now comprises
ten team members based out of our UK office.
We work extensively overseas and have developed
equally strong operational partnerships
in countries around the world, forming an
efficient and cost effective hub-and-spoke
operational model.
Power Metal is actively seeking to bring
new team members in to support the growth
in business and we continue to invite talented
individuals from all backgrounds who feel
they can contribute to our work to reach
out and contact us through the following
link:
https://www.powermetalresources.com/join-us/
------------------------------------------------------------------------
Financial Position Working Capital
Working capital comprises cash and listed
investments ("Working Capital").
As at 26/07/22 Working Capital amounted
to GBP1.88m. This is available for payment
of corporate costs and exploration expenditure
across business operations.
Pre-IPO Vehicles
Power Metal has holdings in three current
vehicles undertaking a planned IPO which,
valued at the historical pre-IPO valuation
level, amount to a total value of GBP6.92m
as per the table below: POW Holding at Pre-IPO GBP
Valuation
First Class Metals 1,028,766
----------
Golden Metal Resources 3,325,000
----------
First Development
Resources 2,562,500
----------
Total 6,916,266
----------
In addition, Power Metal is seeking with
JV partners (Red Rock Resources PLC) to
undertake a listing of NBGC, the pre-IPO
valuation of which is not confirmed at the
current time.
The listing of further project packages
may be undertaken which will be incorporated
into the above list in due course.
Project Investments & Intercompany Loans
As at 30/06/2022 Power Metal's remaining
assets comprising project investments and
intercompany loans, amounting to GBP5.08m.
Future Financing Sources
The Company has multiple sources of additional
financing, not all of which may be necessary
or occur in the foreseeable future:
* As an AIM listed vehicle traditional equity financing
can be undertaken to raise additional sums where
considered necessary.
* Through the exercise of financing and transactional
warrants or the exercise of director, team member or
adviser options. A full breakdown of all warrants and
options outstanding is available on the Company's
website through the following link:
https://www.powermetalresources.com/warrants-options-outstanding/
* In addition to the above, the Company will benefit
from the planned listings of the pre-IPO vehicles as
outlined above which will, if successful and in line
with expected valuations on listing, add considerably
to overall Power Metal asset value.
* It is anticipated that further value generative
events may occur including additional spin-outs into
new listed vehicles and outright disposal of certain
business interests.
------------------------------------------------------------------------
Audit and Compliance Power Metal with the support of One Advisory,
completed its interim results for the half
year ended 31 March 2022, which in line
with best practice were reviewed for comment
by the Company's auditors PKF. The interim
results were published on 27 June 2022.
The Company's year end is 30 September 2022
and it is expected that the audited financial
accounts for the full year will be published
in February 2023.
Power Metal is now well advanced with preparation
of a new environmental, social and governance
("ESG") initiative which will include:
* Appointment of an ESG Officer for Power Metal and all
associated companies.
* Design, implementation of new and wide ranging ESG
policies across the Company and embedded at local
project or investment level for all Company
activities.
Training of all staff members to develop
Company-wide core ESG understanding, with
in-depth training where required to maintain
optimal ESG capability at all levels.
A separate ESG dedicated announcement will
be published by the Company in due course.
------------------------------------------------------------------------
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
%
Athabasca Canada 100% Hyperspectral Finalise review of data
Uranium data analysis from 3 properties. Prepare
conducted across for summer exploration
all 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%
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