TIDMPOW
RNS Number : 7042L
Power Metal Resources PLC
04 January 2023
4 January 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
Acquisition - Canadian Graphite Project
New Battery Commodities Vehicle
Power Metal Resources PLC (LON:POW), the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces the acquisition of the
4,222-hectare Doerksen Bay graphite Project ("Doerksen Bay" or the
"Project") located in mining friendly Saskatchewan, Canada. Power
Metal also announces the formation of ION Battery Resources
Limited, a new UK private battery metals and minerals focused
vehicle.
HIGHLIGHTS
-- The acquisition of Doerksen Bay gives Power Metal
shareholders exposure to the exciting graphite space, a key
component in new age battery technology.
-- Graphite flake prices are trading near to historic highs, and
tight supply is expected to underpin the graphite market into
2023.(1)
-- Historical rock samples from Doerksen Bay have returned
graphite grades of up to 45% carbon (C) from coarse-grained
graphitic gneiss (2) .
-- The Project complements the Company's Authier North/Duval
East as well as North Wind lithium projects which are all to be
held within a newly incorporated special purpose battery
commodities vehicle, ION Battery Resources Limited.
Paul Johnson, Chief Executive Officer of Power Metal Resources
PLC commented:
"The acquisition of Doerksen Bay brings a potential high-grade
graphite opportunity into the Power Metal portfolio.
This acquisition enables us to create critical mass in
specialist battery commodities, through the formation of a new
holding company ION Battery Resources Ltd which we plan to hold
Doerksen Bay, together with the Company's two existing Canadian
lithium interests.
We are continuing our desktop research for the Project with a
view to designing ground exploration to test the extremely
high-grade graphite occurrences reported from the Project as soon
as weather conditions and team availability allows."
ACQUISITION TERMS
The vendors of the Project (the "Vendors") are a consortium led
by established local prospector Brian Fowler. Mr. Fowler 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 and the Reindeer Lake,
Porter Lake and Old Woman Rapids uranium properties as announced on
26 July 2022.
As consideration for the 100% acquisition of the Project, Power
Metal will pay the Vendors a total of GBP37,500 (the
"Consideration").
The Consideration is payable through the issue of 2,500,000
Power Metal new ordinary shares of 0.1p each ("Consideration
Shares") at an issue price of 1.5p per share. The Consideration
Shares will be subject to a 4-month lock-in from today's date.
PROJECT INFORMATION
Doerksen Bay is located 230km northeast of La Ronge,
Saskatchewan. The Project is centred around five Saskatchewan
Mineral Deposit Index ("SMDI") graphite occurrences including the
Ben, Ben North, Bear Bones, Brabant Lake and Doerksen Bay
showings.
These occurrences returned multiple grab samples of graphite
bearing gneisses including assays up to 45% C (incl. 45%, 36%, 14%,
13%, 12% and 10% C).
A modern airborne geophysical survey was carried out over the
Project in 2013, which highlighted numerous untested
very-low-frequency electromagnetic ("VLF-EM") conductors. Graphite
is a known conductor, and the SMDI graphite occurrences on the
Project are broadly coincident with the VFL-EM conductors. As a
result, the recently identified conductive anomalies may be related
to additional undiscovered high-grade graphite bearing gneiss units
and ground-truthing them will be a priority of future work
programmes undertaken by Power Metal planned for 2023.
NEW VEHICLE
Power Metal has formed a new wholly owned UK private subsidiary
ION Battery Resources Limited ("ION Resources"), which will act as
a holding company (through 100% owned Canadian operating vehicles)
and through which we plan to hold the Company's battery resources
exploration interests including Doerksen Bay (graphite), Authier
North/Duval East (lithium) and the North Wind (lithium).
ION Resources will focus on battery metals and minerals and will
house the Company's current graphite and lithium interests in
Canada as outlined above, as well as any future potential
acquisitions in the battery metal space including lithium, graphite
and potentially vanadium.
After a suitable period of structuring, exploration and
development, ION Resources will be available for outright disposal
or listing on an appropriate stock exchange.
QUALIFIED 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 Qualified 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 2,500,000 Consideration Shares
to be admitted to trading on AIM which is expected to occur on or
around 11 January 2023 ("Admission"). The Consideration 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 1,663,289,092 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.
References:
1:
https://www.argusmedia.com/en/news/2403887-tight-supply-to-underpin-china-graphite-market-in-2023
2: Gneiss: a foliated (banded) metamorphic rock that is formed
by high-temperature and high-pressure metamorphic processes acting
on formations composed of igneous or sedimentary rocks.
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
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END
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