POW Power Metal Resources Plc

20 February 2025

Power Metal Resources PLC

("Power Metal" or the "Company")

Partial Disposal of GMET Holding

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London listed exploration company with a global project portfolio, announces that further to its announcement of 11 February 2025, the Company has entered into a legally binding sale and purchase agreement (the "SPA") with UCAM Ltd ("UCAM") in connection with the partial disposal of its stake in Guardian Metal Resources PLC ("GMET").

Pursuant to the SPA, the Company has sold 29,758,334 shares in GMET, and warrants granted over 986,352 ordinary shares in GMET of £0.01 each, for a total cash consideration of £9,225,083.91 before costs. The proceeds will be used to redeem the £2 million loan note issued to ACAM LP on 10 June 2024, with accrued interest, and for general corporate purposes.

UCAM is now GMET's largest shareholder with an interest of 23.45% of GMET's issued share capital. Power Metal retains 24,699,825 ordinary shares representing 19.46% of GMET's issued share capital, with a value of approximately £8.15 million based on GMET's closing share price on the AIM Market of the London Stock Exchange as at 19 February 2025.  

Tamesis Partners LLP acted as the Company's Financial Adviser in relation to transaction.

Sean Wade, Chief Executive Officer of Power Metal Resources, commented:

"I am pleased to confirm completion of the previously announced partial sale of our GMET interest, realising over £9.2 million of cash proceeds and a return of nearly 10 times on this part of our original investment. GMET remains a core holding for Power Metal and we look forward to further returns from our investment.

Following this transaction, our share price is now largely underpinned by the remaining value of our GMET stake and cash on hand, with significant upside for investors through exposure to our wider portfolio including projects in North America, Saudi Arabia, Oman, Australia and Africa."

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:

NOTES TO EDITORS

Power Metal Resources plc - Background

Power Metal Resources plc (AIM:POW, OTCQB:POWMF) is a London-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, Saudi Arabia 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.