28 May 2024
Power Metal Resources
PLC
("Power Metal" or the
"Company")
The Wilan Project ("Wilan")
Crystallisation Event
NHM Holdings (Australia) Pty Ltd
("NHMHA") acquired by Aruma Resources Limited (ASX:
AAJ)
Power Metal Resources PLC
(AIM:POW,OTCQB:POWMF), the
London-listed exploration company seeking large-scale metal
discoveries across its global project portfolio announced a Merger
Agreement (the "Merger") on 15 December 2022. The Merger
included Power Metal's Wilan Project and additional licences in Mt
Isa region of Queensland to form NHMHA with Power Metal owning 20%
of NHMHA Issued Share Capital. NHMHA created a Uranium / Copper
focused vehicle.
Following successful completion of due
diligence, ASX listed Aruma Resources Limited ("Aruma") (ASX: AAJ)
announced a conditional agreement for the acquisition of 100% of
NHMHA on 27 May 2024, providing Power Metal with exposure to
Uranium and Copper exploration potential on the ASX
Markets.
Sean Wade, Chief Executive Officer of
Power Metal Resources plc, commented:
"I
am very pleased to be able to report an important crystallisation
event in respect of the NHMHA acquisition by Aruma Resources. This
further demonstrates the value of our incubator model and how it
serves to add value to shareholders. This transaction represents a
continued streamlining of our portfolio and allows for
concentration on our highest-value
opportunities".
Extract from the ASX Announcement Dated
27 May 2024, Aruma commented:
Aruma has executed a share acquisition
agreement to acquire the Wilan IOCG-Uranium Project in the Olympic
Dam precinct in South Australia, and the Fiery Creek Copper Project
and the Bartola Copper Project in the Mt Isa region of Queensland
from NHM Holdings (Australia) Pty Ltd (NMHA).
This is a Pivotal acquisition for Aruma. It
will see the Company expand its focus into key high-demand
commodities, copper and uranium, via a portfolio of high-potential
exploration projects in two of Australia's pre-eminent, active
mineral precincts.
Aruma has successfully completed due diligence
over the new projects. Completion of the acquisition of NHMHA
remains subject Aruma shareholder approval, to be sought at a
shareholder meeting to be convened in the near future.
On completion of the acquisition, Aruma plans
to commence targeted, systematic field work programs across the new
projects to define priority drill targets, with the aim of
progressively drill testing priority targets to unlock each
project's full value proposition.
As consideration for the acquisition, Aruma
proposes to issue the following to NHMHA shareholders:
·
26.5 million fully paid AAJ ordinary shares, which will be
subject to a voluntary escrow period of 6 months from the date of
issue;
·
24.5 million options each non-transferable and exercisable
into one ordinary AAJ share for a nil exercise price upon Aruma
securing program for environment protection and rehabilitation
(PEPR) approval for drilling at the Wilan Project in South
Australia, and obtaining any other necessary approvals to conduct
drilling at the Wilan Project; and
· 28
million options each non-transferable and exercisable into one
ordinary AAJ share for a nil exercise price upon AAJ reporting an
aggregate drilling intercept (in one drill-hole) of 3m at
>600ppm U308, or at least 20m at >0.8% Cu or metals
equivalent at one of the new projects.
AAJ will also pay a 2% net smelter royalty to
NHMHA shareholders over any minerals extracted and sold from the
tenements.
ASX Announcement Link:
https://announcements.asx.com.au/asxpdf/20240527/pdf/063ys0wnfvr63w.pdf
For
further information please visit https://www.powermetalresources.com/
or
contact:
Power Metal Resources plc
|
|
Sean Wade (Chief Executive
Officer)
|
|
|
|
SP Angel Corporate Finance (Nomad
and Joint Broker)
|
|
Ewan Leggat/Caroline Rowe
|
+44 (0) 20 3470 0470
|
|
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SI Capital Limited (Joint
Broker)
|
|
Nick Emerson
|
+44 (0) 1483 413 500
|
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First Equity Limited (Joint
Broker)
|
|
David Cockbill/Jason
Robertson
|
+44 (0) 20 7330 1883
|
BlytheRay (PR Advisors)
|
+44 (0) 20 7138 3204
|
Tim Blythe
|
|
Megan Ray
|
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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.