12 June 2024
Power Metal Resources
PLC
("Power Metal" or the
"Company")
Disposal of Victoria Goldfields Joint
Venture Interest
Power Metal
Resources PLC (AIM:POW, OTCQB:POWMF),
the London-listed exploration company with a global project
portfolio, is pleased to
confirm that further to the announcements dated 13 March
2024 (see here: https://tinyurl.com/26ejenby)
and 10 June 2024 (see here: https://tinyurl.com/yc6d9ekx)
the conditions precedent of the transaction have
now either been fulfilled or waived. Accordingly, completion of the
disposal of the Company's 49.9% interest in New
Ballarat Gold Corporation plc
("NBGC"), which
wholly owns Red Rock Australasia Pty Limited
("RRAL"), the local operating company holding exploration
interests in the Victoria Goldfields, Australia and in South
Australia, will occur within five days of 11 June 2024 (the
"Completion").
Following Completion:
1) Power Metal will transfer
its holding in NBGC to Red Rock Resources plc ("RRR");
2) RRR will deliver
£250,000 in convertible loan notes ("CLNs"), with a conversion
price equal to the price of any placement of new ordinary shares of
RRR raising proceeds of over £200,000. Should conversion not
be undertaken within six months of 8th March 2024, the
CLNs of £250,000 are repayable immediately as cash; and
3) RRR will deliver
166,666,667 new ordinary shares in RRR to Power Metal, with
accompanying warrants exerciseable at 0.25p per share in
RRR.
A further announcement will be made following
Completion.
Sean Wade, Chief Executive Officer
of Power Metal Resources plc, commented:
"I'm pleased to confirm that Power Metal will
be executing the disposal of its interest in New Ballarat Gold
Corporation plc to joint venture partner Red Rock Resources plc in
the coming days.
"The disposal enables the ownership of NBGC to be focused in
one entity which is the optimal holding structure for its continual
development. This also reflects the success of the streamlining
process of the Power Metal portfolio, with the NBGC interest being
converted into a balance sheet investment holding and additional
incoming cash.
"For Power Metal, this disposal will further enable the
Company to focus and direct its managerial, operational and
financial resources on retained high value business interests and
new opportunities.
"I
would like to wish the RRR team all success with their plans for
these licences."
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
|
|
Sean Wade (Chief Executive
Officer)
|
+44 (0) 20 3778 1396
|
|
|
SP Angel Corporate Finance (Nomad
and Joint Broker)
|
|
Ewan Leggat/Caroline Rowe
|
+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
BlytheRay (PR Advisors)
Tim Blythe/Megan Ray
|
+44 (0) 20 7330 1883
+44 (0) 20 7138 3204
|
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.