RNS Number : 0557W

Power Metal Resources PLC

17 December 2021

17 December 2021

Power Metal Resources PLC

("Power Metal" or the "Company")

Warrant Update and Extension of Insider Warrants

Power Metal Resources plc (LON:POW) the London listed exploration company seeking large scale metal discoveries across its global project portfolio announces an update in respect of Company share warrants.

Update Regarding Exercise of Warrants Expiring December 2021

On 17 December 2019 the Company issued warrants (the "December 2019 Warrants") as part of a financing undertaken by the Company and as outlined below:

 Description           N umber of Warrants   Exercise Price 
 Financing Warrants        175,000,000           0.70p 
                      --------------------  --------------- 
 Advisor Warrants          17,500,000            0.70p 
                      --------------------  --------------- 

All December 2019 Warrants carried a two-year life to expiry which ends today, 17 December 2021.

Power Metal can confirm that, save for 11,250,000 December 2019 Warrants held by current insiders, further details of which are provided below (the "Insider Warrants"), all December 2019 Warrants have been exercised.

The Company will be providing a breakdown of all other outstanding warrants and options in its upcoming quarterly report for the quarter ended 31 December 2021.

Warrant Exercise Proceeds and Working Capital Summary

In total the exercise of the December 2019 Warrants to date has raised an additional GBP1.27 million for the Company and in total all warrant exercises in 2020/2021 have raised circa GBP4.27 million.

This inflow of warrant monies enabled the Company to aggressively build its business model in 2021 and secure the depth and quality of project interests.

Notwithstanding this heavily active phase in 2021 Power Metal has, at all times, maintained a robust working capital position. Currently working capital, defined for this purpose as only cash and listed investments, stands at circa GBP3.06 million.

It is important to note that the above working capital figure excludes all unlisted Power Metal assets, including corporate holdings and project level investment holdings ("Unlisted Assets"). Included within Unlisted Assets are the Company's pre-IPO interests in First Class Metals Ltd, Golden Metal Resources Ltd, First Development Resources Ltd and New Ballarat Gold Corporation PLC.

To assist shareholders' understanding of the financial position of the Company a breakdown of all the Company's unaudited assets will be provided in the quarterly report for the quarter ended 31 December 2021.

Extension of Insider Warrants

As at 17 December 2021 the following Insider Warrants remained outstanding:

 Warrant Holder    N umber of Warrants   Exercise Price 
 Paul Johnson           6,250,000             0.7p 
                  --------------------  --------------- 
 Ed Shaw                5,000,000             0.7p 
                  --------------------  --------------- 

The Insider warrants were issued following participation in the December 2019 financing.

The Company is currently managing numerous exploration programmes and corporate activities across its portfolio and is engaged in various discussions relating to existing or potential business interests with external third parties.

As a result, the December 2019 Warrants held by Paul Johnson (Chief Executive Officer of Power Metal) and Ed Shaw (Non-executive Director of Power Metal) cannot be exercised on the expiry date of 17 December 2021 and may be extended under the warrant instrument, as outlined below.

Under the December 2019 Warrant instrument clause 2.3 provides that should any December 2019 Warrant holder be in the possession of price sensitive information and be thereby precluded from exercising warrant subscription rights, the exercise period shall be extended until 20 business days following the date on which the Warrant holder ceases to be an insider.

Given the level of ongoing operational activity there is a material likelihood that the receipt of price sensitive information could frequently restrict the ability of Paul Johnson and Ed Shaw to exercise the December 2019 warrants.

Reflecting the above the Company has extended the Insider Warrants expiry date by three months to a new expiry date of 17 March 2022.

Related Party Note

The extension of the Insider Warrants held by Paul Johnson and Ed Shaw as outlined above, have been treated as related party transactions for the purposes of AIM Rule 13.

Scott Richardson Brown being the independent Director for the purposes of the extension of the expiry date of the Insider Warrants held by Paul Johnson and Ed Shaw considers, having consulted with the Company's nominated adviser, SP Angel, that the extension of the warrant expiry date to 17 March 2022 to such related parties is fair and reasonable insofar as the Shareholders are concerned.

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 


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.

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:

       Project         Location      POW %          Work Completed             Results Awaited 
                                                      or Underway 
 Alamo Gold               USA       Earn-in    Excavation of multiple      Field results from 
  Project                            to 75%     test pits and mapping       on-site work programme. 
                                                & sampling. 
                      ----------  ----------  --------------------------  ------------------------- 
 Athabasca              Canada       100%      Phase I field exploration   Laboratory assay 
  Uranium                                       completed                   results of samples 
                                                                            collected for uranium 
                                                                            and REEs 
                      ----------  ----------  --------------------------  ------------------------- 
 Authier North          Canada      Earn-in    Soil & rock sampling        Laboratory assay 
  Lithium                           to 100%     completed                   results of samples 
                      ----------  ----------  --------------------------  ------------------------- 
 Ditau Project         Botswana       50%      Preparatory exploration     Field programme 
                                                work underway on            findings and defined 
                                                target I10 leading          drill targets for 
                                                to planned accelerated      near term drilling. 
                                                drilling targeting 
                                                rare-earth elements 
                                                and base metals 
                      ----------  ----------  --------------------------  ------------------------- 
 Kalahari Copper       Botswana       50%      Exploration programme       Field programme 
  Belt                                          underway across             findings and defined 
                                                the South Ghanzi            drill targets for 
                                                Project and further         near term drilling 
                                                exploration at 
                                                the more recently 
                                                acquired South 
                                                Ghanzi Extension 
                                                and Mamuno licence 
                      ----------  ----------  --------------------------  ------------------------- 
 Molopo Farms          Botswana       53%      Kavango Option              Results from various 
                                                to acquire an interest      work activities 
                                                in local project            underway as part 
                                                holding company.            of the Kavango 
                                                Option fee payable          Option 
                                                through defined 
                                                work programme 
                      ----------  ----------  --------------------------  ------------------------- 
 Tati Gold/Nickel      Botswana      100%      Reverse circulation         Laboratory assay 
                                                drill programme             results awaited 
                      ----------  ----------  --------------------------  ------------------------- 
 Victoria Goldfields   Australia     49.9%     Ongoing exploration         Results from field 
                                                across 848km(2)             programme including 
                                                of granted exploration      drill programme 
                                                licences                    underway 
                      ----------  ----------  --------------------------  ------------------------- 
 Wallal Gold/Copper    Australia   83.33%(1)   Passive seismic             Results awaited 
  Project                                       and 2D seismic 
                                                processing work 
                                                programme completed 
                      ----------  ----------  --------------------------  ------------------------- 

(1) assuming all licences held by URE Metals Pty Limited are granted as outlined in the Company's announcement of 19.11.21 resulting in the issue of First Development Resources Ltd shares to URE vendors.

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(END) Dow Jones Newswires

December 17, 2021 06:09 ET (11:09 GMT)

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