TIDMPOW
RNS Number : 4344X
Power Metal Resources PLC
05 January 2022
05 January 2022
Power Metal Resources plc
("Power Metal" or the "Company")
Quarterly Business Operational Update
Power Metal Resources PLC (LON:POW) the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces the December 2021 quarterly
business operational update for shareholders.
QUARTER HIGHLIGHTS:
Exploration
- Completion of a 1,092 metre reverse circulation drill
programme at the Tati Project, Botswana, designed to follow up on
Phase I and II results which highlighted kilometre-scale gold,
arsenic and nickel geochemical anomalies coincident with various
geological structures highlighted by ground geophysical
surveys.
- Bonanza grade silver achieved in 10 out of 19 drillholes
completed during the Phase I Silver Peak Project, Canada, drill
programme, follow up overlimit assays confirmed high-grade copper,
antimony and lead results increasing the average silver equivalent
grade by 18.8%.
- Rock sampling and prospecting programmes conducted at the
company's Tait Hill, Thibaut Lake and Clearwater uranium properties
surrounding the Athabasca Basin, Saskatchewan, Canada, returned
high-grade assay results up to 38,600ppm (3.86%) uranium.
- Securing the option agreement for Kavango Resources plc
("Kavango") to acquire current project partner Kalahari Key Mineral
Exploration Pty Ltd ("Kalahari Key"), through which exploration for
nickel, copper and platinum group elements ("PGE") at the Molopo
Farms Complex Project would see a significant step forward. Having
Kavango as the operational partner should streamline the ongoing
project progression which is key following the discovery of nickel
sulphides during the inaugural 2021 drill programme.
Spin-Out Vehicles
- New Ballarat Gold Corporation ("NBGC"): grant of licence
applications in Victoria, Australia, further increase the licence
footprint to over 1,500km(2) ; NBGC's inaugural diamond drilling
programme has commenced targeting gold mineralisation across a
number of exploration targets.
- Golden Metal Resources Limited ("Golden Metal"): Acquisition
of Pilot Mountain Project which hosts a substantial JORC compliant
Mineral Resource (tungsten with significant silver, copper &
zinc credits) in Nevada, USA, into Golden Metal which is seeking a
listing in London. Golden Metal is now moving through the listing
process with a full management board, suite of listing advisers and
has recently completed a GBP750,000 pre-IPO financing.
- First Development Resources Limited ("FDR Australia"): Further
commercial and technical developments within Power Metal's FDR
Australia subsidiary company with preliminary exploration work
delineating a number of exciting magnetic bullseye gold/copper
targets at the Wallal Project located within the prolific Paterson
Province. Further acquisition into FDR Australia of the Selta
Project targeting uranium and rare-earth elements in the Northern
Territory, Australia.
Corporate PLC
- Financing conducted in November raising GBP1,050,000 in a
placing conducted at the then mid-market price of 1.75p.
- Operational working capital comprising cash and listed
investments at 31/12/2021 amounted to GBP2.91M and unaudited total
assets at 30/11/2021 of GBP10.1M (before valuation uplift in
spin-out vehicles to pre-IPO valuation).
- New team members recruited in the quarter include a Chief
Executive Officer for First Development Resources Limited (planned
UK listing company) and Power Metal commercial management,
accounting and business administration staff. Additional
recruitment underway to support the growth of the Company and its
various spinouts.
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc, commented:
"We have chosen a non-conformist path for Power Metal in order
to build a company, and investment proposition, quite unlike any
other within the London junior resource space.
We have opted for scale and diversity, assembling a large
portfolio, widely spread across multiple jurisdictions and
commodities, with a main focus on district scale opportunities.
Our mission, after the first phase of portfolio building, was to
create value through proactive exploration and corporate activity.
We are doing just that as you will see from the project level
detail provided for the most recent quarter below.
We currently sit at an important point in the Power Metal
life-cycle, coincidentally, at a time when the world is demanding
unprecedented quantities of metals for investment security, new
infrastructure builds and to power the ongoing green technological
revolution.
Despite the world's aspirations, the practical reality is that
in recent years we have seen metal supply attrition with a lack of
large-scale metal discoveries combined with subdued investment in
the exploration and project development space.
With such skewed supply/demand fundamentals, sectors can come
alive, and we believe 2022 will be an exciting year for the junior
mining resource space.
The final quarter of 2021 is captured below with a brief
assessment by the Company of each project and company within our
portfolio. The work completed during the final quarter of 2021 has
set up Power Metal well for the coming year."
Note: in addition to the material presented below, investors are
encouraged to review Power Metal's corporate presentation which is
available on the Company's website through the following link:
https://www.powermetalresources.com/presentation/
PROJECT OPERATIONS UPDATE
The tables below provide the latest status of each project
within the Company's portfolio and include:
- Exploration project updates from African, North American and Australian interests;
- Corporate development updates for project packages advancing
towards spin-out into their own listed vehicles;
- Further updates in respect of the Company's new project
pipeline including Power Capital Investments Ltd, the Company's
wholly-owned project incubator;
- Additional management, compliance and financial information for shareholders.
African Exploration Projects
Project Latest Position
Molopo Farms Complex The Molopo Farms Complex Project ("MFC Project")
Project is owned by Kalahari Key Mineral Exploration
Botswana Pty Ltd ("Kalahari Key") with a 60% interest
(Nickel - Copper and Power Metal with a 40% interest. Power
- Platinum Group Metal earned-in to its 40% interest by spending
Element) US$500,000 on exploration work, including
POW: Effective Economic the maiden drill programme completed earlier
Interest circa 53% this year.
(which will reduce The maiden drill programme provided proof
to 40% if Kavango of concept of the geological model and also
Resources plc exercise identified significant nickel sulphides
their option) in the drill core with assays up to 1.7%
nickel and 0.55g/t platinum (1) . This was
a very positive outcome for the first drill
programme on this district scale exploration
project.
In order to simplify the project ownership
structure and streamline ground operations
in Botswana, an option agreement was signed
with Kavango Resources plc to acquire Kalahari
Key and its 60% interest in the MFC Project.
In lieu of an option fee and as part of
its due diligence, Kavango is undertaking
an agreed exploration work programme on
the MFC project, the results of which will
be made available to Power Metal in due
course.
If Kavango exercises its option Power Metal
will sell its circa 21% interest in Kalahari
Key in exchange for Kavango shares and warrants.
Power Metal will retain and intends to maintain
its 40% interest in the MFC project for
the foreseeable future.
Further details in respect of the Kavango
option are in the Company's announcement
on 26/11/2021 as linked below:
https://www.londonstockexchange.com/news-article/POW/kavango-option-kalahari-key-botswana/
15226717
Company View:
Proof of the geological model and the identification
of nickel sulphides in the inaugural three
drill hole programme was an extremely positive
initial outcome for the MFC Project.
It became evident however, that progress
was slower than ideal particularly given
the positive results of maiden drilling
programme. As a result, action was needed
to simplify the project ownership structure
in order to accelerate work progression
and streamline ongoing operations.
The Kavango option agreement was an important
step in this regard. We look forward to
the results of the option work programme
which should provide valuable additional
data to help plan the next phase of drilling
to follow up on the encouraging results
achieved thus far.
-------------------------------------------------------------------------------------------
South Ghanzi Project
Botswana The South Ghanzi Project is held within
(Copper - Silver) Kanye Resources Pty Limited, a joint venture
POW: 50% vehicle 50% held by Power Metal and 50%
by partners Kavango Resources plc (LON:KAV)
who are the operators of the project.
Drill target refinement continues at the
South Ghanzi Project, together with initial
exploration at the South Ghanzi Extension
licences and the Mamuno licences acquired
more recently in August 2021 (2) . Together,
the ground footprint in the Kalahari Copper
Belt ("KCB Project") totals 4,257km(2) .
Approval of the Environmental Management
Plan ("EMP") for South Ghanzi was secured
in October 2021 clearing the last key administrative
hurdle and enabling drilling to be undertaken
subject to the ongoing target refinement.
The joint venture partners continue to consider
the planned IPO of Kanye Resources (through
a UK listing company, Kanye Resources plc)
and an update in this regard will be provided
as soon as practicable.
Company View:
Approval of the EMP was a major step forward
for the KCB Project. The KCB holds district
scale potential and Power Metal is working
with Kavango to ensure the initial drill
holes are optimally cited to gather the
best geological data and maximise the chance
of discovery.
The joint venture partners anticipate a
material budget will be applied to drilling
at the KCB Project and therefore appropriate
investment is being made in preparatory
measures to optimise the vectoring of drill
targets.
-------------------------------------------------------------------------------------------
Ditau Camp Project The Ditau Camp Project ("Ditau") is also
Botswana held within the Kanye Resources joint venture
(Rare Earths - Base as outlined above.
Metals) Exploration work targeting Rare Earth Elements
POW: 50% ("REE") and base metals has identified a
2.5km by 2.8km target area at prospect I10
where an Audio-frequency Magnetotellurics
("AMT") geophysical resistivity anomaly,
coincides with a gravity high anomaly. The
latest Ditau exploration findings were announced
to the market in October 2021 and may be
viewed in the link below:
https://www.londonstockexchange.com/news-article/POW/ditau-project-botswana-exploration-up
date/15184669
Further exploration work is continuing on
the ground and the next material step, exploration
drilling, is expected to commence in the
first quarter of 2022.
Company View:
The Ditau Camp Project, soon to be the target
of exploration drilling, has delivered some
extremely positive findings to date, particularly
with the large anomaly now identified at
prospect I10.
The expansion of target commodities from
REEs to now include base metals demonstrates
the prospectivity Ditau holds and we are
very eager for drilling to commence as soon
as possible.
-------------------------------------------------------------------------------------------
Tati Project
Botswana The Company recently completed a maiden
(Gold - Nickel) drill programme following up positive initial
POW: 100% exploration results including geochemical
soil sampling, mapping & prospecting, and
ground-based geophysics including high-resolution
magnetic and radiometric surveys.
The initial exploration highlighted five
target areas across the two licences, which
are defined by kilometre-scale geochemical
anomalies that are coincident with various
geological structures that were highlighted
by the ground geophysical surveys.
The Company announced a maiden drill programme
at the Tati Project in October 2021 and
details may be viewed through the link below:
https://www.londonstockexchange.com/news-article/POW/tati-project-botswana-drill-programm
e-commences/15169113
The maiden drill programme comprised 23
reverse circulation ("RC") drillholes for
a total 1,092m drilled. The RC holes targeted
multiple nickel and gold anomalies identified
by the Company's Phase I and Phase II geochemical
and geophysical programmes completed earlier
in the summer. RC samples were shipped to
Johannesburg for sample preparation at Intertek
Genalysis ("Intertek") preparatory facility,
and have since been shipped and received
in Perth, Australia, at Intertek's laboratory
where they are undergoing analysis. Results
from all RC samples are still pending and
are expected to be received in early 2022.
Power Metal has incorporated a new Botswana
company, Tati Greenstone Resources Pty Ltd
("TGR"), to hold the Tati Project. Documentation
for the transfer of the two exploration
licences comprising the Tati Project into
TGR has been submitted to the Ministry of
Mineral Resources, Green Technology and
Energy Security ("MMGE").
Company View:
From the original announcement confirming
an option for the Tati Project in May 2021(3)
, Power Metal have moved through a number
of initial exploration steps very rapidly.
We await the results from the recent RC
drilling campaign which will provide key
information with regard to sub surface geology
to complement the information collected
at surface from geochemical and geophysical
exploration work.
The identification of multiple kilometre-scale
gold, arsenic and nickel anomalies so early
in the work programme, provides multiple
opportunities for a gold or nickel discovery.
We are therefore pushing as hard as possible
to accelerate project exploration.
-------------------------------------------------------------------------------------------
Kisinka Project Next stage exploration is drill testing
The Democratic Republic of the 6.8km copper-cobalt geochemical anomaly
of the Congo identified by previous exploration programmes
(Copper - Cobalt) at the Kisinka Project which holds a 25
POW: 70% year production licence.
We are continuing to push for an acceptable
drill programme including target finalisation
and sourcing of appropriate contractors.
Company View:
The 6.8km copper-cobalt anomaly is an interesting
exploration target which we would like to
see drill tested.
The Kisinka Project has discovery potential,
but the pace of commercial and exploration
progress in-country has been slower than
ideal and this is something we are working
to resolve.
-------------------------------------------------------------------------------------------
Haneti Project
Tanzania The Haneti Project is held 35% Power Metal
(Polymetallic) and 65% Katoro Gold plc (LON:KAT).
POW: 35%
The next stage of exploration at the Haneti
Project is deep diamond core ("DC") drill
testing of targets prospective for nickel
sulphide / PGE mineralisation.
The DC drill programme is scheduled to commence
in January 2022 and further information
will follow in due course.
Company View:
Based on the results achieved to date at
the Haneti Project, we are of the belief
that the next stage of exploration needs
to be deep diamond drilling, and we are
very pleased that this work is about to
commence.
If the DC drilling is successful in the
delineation of the mineralising system we
are ultimately seeking the discovery of
a nickel sulphide and PGE deposit and the
impact on both Katoro and Power Metal could
be significant.
Power Metal are therefore eager to see diamond
drilling commence in January 2022 and the
findings therefrom.
-------------------------------------------------------------------------------------------
North American Exploration Projects
Project Latest Position
Silver Peak Project A Phase I diamond drill programme was launched
British Columbia, at the Silver Peak Project in August 2021.
Canada In total 19 short cored drill holes were
(Silver) completed and assay results from this programme
POW: 30% were completed with 10 out of the 19 holes
drilled returning bonanza grade silver (>1,000g/t
Ag) with significant copper, zinc, lead
and antimony credits, and 14 of the 19 holes
returning elevated silver mineralisation.
This i ncluded a highlight Intercept of
0.76m of 8,692.2g/t Ag (279.5 oz/t) from
hole DDH21-2.
The initial drill assay results from the
Phase I programme were announced by the
Company in November 2021 and may be viewed
through the following link:
https://www.londonstockexchange.com/news-article/POW/silver-peak-canada-drill-programme-assay
-results/15210267
In addition, overlimit assays were conducted
highlighting high grade copper, antimony
and lead results. The overlimit assays received
led to an average increase in grade of 18.8%
from silver to silver equivalent for the
calculated intervals. The overlimit assay
results were announced by the Company in
December 2021 and may be viewed through
the following link:
https://www.londonstockexchange.com/news-article/POW/silver-peak-canada-overlimit-assay-resul
ts/15233399
Following the completion of the 2021 Phase
I drilling programme, and the receipt and
release of all associated assay results,
the project partners commissioned a NI43-101
compliant technical report (4) to be completed
on the Silver Peak Project.
The report was commissioned to prepare the
Silver Peak Project to potentially act as
a qualified project for a possible public
listing.
Company View:
The results from all stages of exploration
at Silver Peak have been increasingly exciting
for Power Metal and our partners. Repeated
bonanza grade silver results are particularly
attractive and, in our opinion, have led
to a significant increase in the overall
project valuation.
There are a number of potential options
for project commercialisation and we continue
to work with our partners to review possible
next steps.
----------------------------------------------------------------------------------------------
Alamo Gold Project
Arizona, United Permitting delays were encountered slowing
States of America progress at the Alamo Gold Project. Following
(Gold) granting of permits the work programme recommenced
POW: Earn-in to and is outlined in the Company's November
75% announcement found in the link below:
https://www.londonstockexchange.com/news-article/POW/alamo-gold-project-usa-exploration-upda
te/15221692
The test pitting programme was completed
successfully in early December 2021.
As part of the programme, multiple test
pits were excavated to bedrock at Big Boulder
Wash (3 pits) and Breccia Hill (3 pits).
A total of 13 rock samples were taken from
various trenches at Breccia Hill, as well
as three additional rock samples from various
localities located near to the trenches.
Rocks sampled were described predominantly
as volcanic and/or gneissic in nature, with
varying degrees of brecciation and hematisation
noted in several samples. Two of the prospecting
samples were described as strongly oxidised
quartz vein samples with carbonate-sulphide
veining throughout.
All samples were sent for assay at an accredited
ALS laboratory where they will undergo multi-element
analysis including gold, utilising a large
50-gram aliquot size intended to reduce
any nugget effect present in any of the
samples. Significant results will be announced
to shareholders as and when received.
Due to the permitting delays experienced
on our Alamo Gold Project, Power Metal and
the vendor, Frisco Gold Corporation, have
agreed to an amendment to the original Mineral
Lease and Option Agreement signed between
the two companies.
Under the original terms, a US$50,000 pre-production
royalty payment ("PPR Payment") was due
by 31 December 2021. Under the amended agreement,
the PPR Payment has been deferred until
14 days after the receipt of all analytical
results from the 2021 test pitting programme,
or 31 March 2022, whichever is earlier.
The amendment will allow Power Metal to
review all 2021 exploration data before
making a decision on next steps with the
project.
Company View:
Progress has been slow with the Alamo Gold
Project largely due to the permitting delays
locally onset by the COVID-19 pandemic.
With permits now issued, and work completed
and underway, we await the findings with
interest to determine the next steps for
the project.
----------------------------------------------------------------------------------------------
Athabasca Uranium
Saskatchewan, Canada The Company began staking in the Athabasca
(Uranium) Basin in Saskatchewan, Canada in September
POW 100% 2021 and in November 2021 announced a further
batch of staking increasing the footprint
of staked ground to 411.96km(2) over 7 property
packages as outlined in the following announcement:
https://www.londonstockexchange.com/news-article/POW/uranium-portfolio-expansion-athabasca-b
asin/15206182
Work was undertaken to assemble detailed
project information and to determine next
steps for the newly acquired properties.
Step one was the launch of Phase I surface
rock sampling programmes at three properties,
Tait Hill, Thibault Lake and Clearwater.
The programme was successfully completed
in November 2021 and 20 rock samples were
collected for assay testing, with the results
sent for rush assay testing.
Assay results were received in December
2021 demonstrating high grade uranium with
the highest grade of 38,600ppm or 3.86%
uranium oxide ("U(3) 0(8) ")(.)
The full exploration update released by
the Company may be viewed in the link below:
https://www.londonstockexchange.com/news-article/POW/uranium-exploration-update-athabasca-ba
sin/15256838
Company View:
The Company's move into the uranium exploration
space has generated a lot of interest amongst
shareholders. This is justifiable, as the
staking undertaken in September through
to November has created 7 exciting project
packages surrounding the Athabasca basin.
Those packages have attracted interest from
multiple parties and we continue to review
the forward pathway for our uranium business
in which Power Metal has significant optionality.
We continue to look for additional uranium
opportunities in the Athabasca region and
more generally in North America and Africa.
----------------------------------------------------------------------------------------------
Authier North
Quebec, Canada Inaugural exploration was launched at Authier
(Lithium) North in September 2021 with a Phase I programme
POW earn-in to 100% comprising prospecting, mapping and sampling.
The programme was designed to test for the
extensions of a lithium-bearing pegmatite
dyke down dip to the north, and along strike
to the east from the adjacent Authier Lithium
Property.
The Authier Lithium Property is owned by
Sayona Mining Limited and is scheduled to
go into production in 2023.
A total of 12 rock samples and 193 B-horizon
soil samples were collected from three grid
areas across the Authier North Project (West,
Northeast, and Southeast).
Soil and rock samples were collected and
sent for assay at Activation Laboratories
Ltd., Ancaster, Ontario. Soil samples were
assayed utilising a 35-element analytical
package including lithium, and select samples
were further tested for rare-earth element
enrichment utilising a REE analytical package.
The mean result for lithium-in-soil was
9.8ppm Li, with a standard deviation of
4.0ppm Li. The three highest results returned
were 27ppm Li, 29ppm Li, and 36ppm Li representing
a 4, 4.5 and 6 standard deviation increase
over the mean.
The highest results were all located in
the eastern part of the Authier North Project
within the Northeast and Southeastern grids.
The Company is considering additional infill
soil sampling between the two grids, as
well as possible ground-based geophysical
surveys over the entire project.
Company View:
The Authier North project is an exciting
lithium and REE focused opportunity for
Power Metal.
We are pleased to have successfully completed
Phase I exploration and are looking forward
to receipt of full assay data so we can
determine next steps for the project.
----------------------------------------------------------------------------------------------
Australian Exploration Projects
Project Latest Position
Gawler Project
South Australia In October 2021 the Company announced it
(Gold, Copper) had established a new wholly owned Australian
POW: 100% subsidiary Power Metal Resources Australia
Pty Ltd ("POW Australia"). Following that,
POW Australia submitted licence applications
covering an area of 1,994km(2) in the Gawler
Craton of South Australia.
The applications are targeting Olympic Dam
style mineralisation and POW Australia is
currently undertaking a review of publicly
available historic data in order to further
refine geological understanding and prepare
detailed exploration plans in readiness
for ground operations when licences are
granted.
The Company's announcement in respect of
the above may be viewed through the following
link:
https://www.londonstockexchange.com/news-article/POW/new-australia-copper-gold-opportunity/151894
56
Company View:
The Gawler Project, although early stage
and still in the application phase, demonstrates
the Company's ability, with the skills and
knowledge of its technical team members,
to identify new opportunities and move quickly
to secure new ground and begin to build
a new project opportunity from the ground-up.
---------------------------------------------------------------------------------------------------
Disposal/Spin-Out Vehicle Packages (*)
* Please note other project packages within the Power Metal
portfolio are also in earlier stages of spin-out preparations in
addition to those listed below.
Project Latest Position
New Ballarat Gold Power Metal has a 49.9% interest in New
Corporation Ballarat Gold Corporation plc ("NBGC") which
Victoria, Australia is held in a joint venture with 50.1% owner
(Gold) Red Rock Resources plc (LON:RRR).
POW: 49.9% Through its Australian operating subsidiary,
Red Rock Australasia Pty Ltd, NBGC has a
substantial claim holding within the Victoria
Goldfields, Australia.
The latest update in respect of NBGC was
released by the Company in December 2021
and may be viewed through the following
link:
https://www.londonstockexchange.com/news-article/POW/new-ballarat-licence-grant-drilling-com
mences/15251136
Note: subsequent to the above update a further
single licence has been granted, EL007505
covering 9km(2) , further details about
which will be provided in future NBGC updates.
The update confirms the commencement of
an inaugural DC drilling programme at the
O'Loughlin's gold prospect located south
of Buninyong. Further details of the planned
drill programme were provided in the Company's
update also released in December 2021 which
may be viewed through the following link:
https://www.londonstockexchange.com/news-article/POW/business-update-red-rock-resources-aust
ralasia/15240196
Drilling is progressing well with a market
update expected in January 2022.
NBGC is seeking a listing on the London
capital markets and is working with advisors
in this regard.
Company view:
A significant claim footprint secured by
joint venture partners has created a valuable
land holding within the Victoria Goldfields,
one of the most sought after gold exploration
regions in the world.
To date over 10 exploration licences (of
the 16 applications) have now been granted,
taking the granted footprint to over 1,500km(2)
, representing a major achievement which
has materially increased the value of the
joint venture.
Whilst the preparations for listing the
vehicle in London are in process, the proactive
approach to exploration continues, with
multiple gold exploration targets now subject
to diamond drilling that is progressing
well.
---------------------------------------------------------------------------------------------
Golden Metal Resources During 2021 Power Metal assembled a strategic
Nevada, USA package of exploration and development interests
Gold - Base Metals in Nevada, USA, under the corporate vehicle
POW 83.13% (following Golden Metal Resources Ltd ("Golden Metal").
issue of shares Golden Metal's project portfolio includes:
relating to the * Golconda Summit - An earn-in over an exploration
GBP750,000 pre-IPO property targeting a major gold discovery, where
financing) Golden Metal has a right to earn-in to a 100%
interest.
* Garfield/Stonewall - Two 100% owned exploration
properties targeting gold-silver-copper
mineralisation.
* Pilot Mountain - 100% interest in an advanced
exploration and development property with a
substantial JORC compliant Mineral Resource for
tungsten (with significant copper, silver and zinc
credits).
The latest Golden Metal project exploration
update was released in November 2021 and
may be viewed through the link below:
https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-exploration-upda
te/15229671
Golden Metal is seeking a listing on the
London capital markets (targeting April
2022) and has recruited its listing board,
appointed all advisors and recently raised
GBP750,000 in pre-IPO funding further details
of which may be seen in the Company's December
announcement linked below:
https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-pre-ipo-financin
g/15244131
The Golden Metal website is now live and
can be viewed through the following link:
https://www.goldenmetalresources.com
The Golden Metal corporate presentation
may be accessed directly through the following
link:
https://www.goldenmetalresources.com/golden-metal-resources-presentation/
Company View:
The pre-IPO financing for Golden Metal
was conducted at a pre-money valuation of
GBP3.25million. The intention is to secure
an IPO listing at a premium to the pre-IPO
valuation and launch Golden Metal with immediate
high-impact exploration programmes planned
across the portfolio.
Power Metal considers the Golden Metal package
to be a highly attractive listing vehicle,
offering UK-based investors access to North
American exploration focused on the world's
top mining jurisdiction (5) of Nevada, USA.
The Golden Metal package includes the Pilot
Mountain Project, which hosts a significant
JORC compliant Mineral Resource which we
believe will underpin a strong valuation
for Golden Metal going forward.
Golden Metal is a unique opportunity and
the Company is looking forward to the planned
listing and proactive exploration updates
thereafter.
---------------------------------------------------------------------------------------------
First Development Power Metal acquired a 100% interest in
Resources First Development Resources Pty Ltd ("FDR
Western Australia Australia") via its wholly owned subsidiary
(Gold - Copper - First Development Resources Limited ("FDR
Rare Earth Elements UK"). The announcement in respect of this
- Uranium) acquisition was released in October 2021
POW: 96.15% (diluting and may be viewed through the following
down to 83.33% should link:
all 3 Selta Project https://www.londonstockexchange.com/news-article/POW/power-metal-acquires-100-of-fdr-austral
licences be granted). ia/15193248
FDR Australia has a 100% interest in three
exploration projects in the Paterson Province
of Western Australia (comprising five granted
exploration licences in total and covering
a ground footprint of 751km(2) ).
The three projects include the Wallal Project,
Braeside West Project and Ripon Hills Project.
At the flagship Wallal Project, ongoing
exploration work includes 2D seismic geophysics
reprocessing and a passive seismic survey
which is intended to help refine drill targeting
within the Wallal Main licence area.
Drill targets comprise magnetic bullseye
targets of similar geological nature to
that drill tested by Greatland Gold plc
leading to the discovery of the Havieron
deposit also within the Paterson Province.
In November 2021 Power Metal announced that
FDR UK had acquired URE Metals Pty Ltd ("URE")
an Australian private company and holder
of the Selta Project, comprising 3 exploration
licences in the Northern Territory, Australia.
The announcement may be viewed through the
following link:
https://www.londonstockexchange.com/news-article/POW/uranium-rare-earths-acquisition-austral
ia/15219001
The acquisition of URE was almost entirely
payable in FDR UK shares diluting Power
Metal's holding in FDR UK to 96.15% initially,
and ultimately to 83.33% should all 3 Selta
Project licences be granted.
The pre-transaction value of Power Metal's
interest in FDR UK was GBP2,500,000 and
FDR UK is seeking a listing on the London
capital markets. Preparatory steps are being
taken for the listing, which is targeting
Q2 2022, including the recruitment of a
suitable board, senior management team and
suite of advisors to assist with the listing
process.
Specifically in respect of the board Tristan
Pottas has been appointed as Chief Executive
Officer of FDR UK and Craig Moulton as Non-executive
Director.
Company view:
It is apparent from shareholder communications
with Power Metal that FDR UK will be of
great interest going forward. The combination
of the Wallal Project's exciting magnetic
bullseye targets together with the uranium/REEs
exploration opportunity at the Selta Project
in the Northern Territory, is drawing significant
shareholder attention.
The Power Metal team are working hard to
implement the preparatory measures needed
to secure the listing of FDR UK and are
looking forward to providing further updates
in due course.
---------------------------------------------------------------------------------------------
First Class Metals Power Metal announced the 100% disposal
Schreiber-Hemlo, of its Schreiber-Hemlo interests to First
Ontario, Canada Class Metals ("First Class") on 7 September
(Gold - Base Metals) 2021 for a consideration of GBP1million.
POW c.36% With the shares received on the disposal,
and following a subscription by Power Metal
of GBP28,764 at GBP3/share in the pre-IPO
raise, Power Metal currently has an interest
of 36.3% in First Class (after reflecting
the circa GBP400,000 pre-IPO raise undertaken
by First Class).
First Class is seeking a listing on the
London capital markets and is working on
this currently targeting a listing for Q1
2022.
Power Metal is working with First Class
to support their listing plans and looks
forward to reporting further progress in
this regard. On listing Power Metal will
be a significant shareholder in First Class.
Company View:
The First Class Metals business offers investors
through London, access to a Ontario, Canada,
focused exploration vehicle with extensive
exposure to highly prospective and strategically
positioned projects.
With the integration of the Power Metal
Schreiber-Hemlo projects, the First Class
Metals portfolio is potentially market leading
and we believe will draw considerable interest
on listing.
The team at First Class Metals are doing
a very effective job and we continue to
work with them where required.
---------------------------------------------------------------------------------------------
New Opportunities
Project Latest Position
Power Metal Resources Power Metal as a business has an acquisitive
plc mindset. However, the near-term focus will
remain on the exploration of existing interests
and the crystallisation of value through
the potential listing of spin-out vehicles
as previously announced.
New acquisitions are likely to be restricted
to additional projects to add into the FDR
UK business in preparation for its planned
IPO, new uranium opportunities and potentially
additional gold/copper opportunities in
North America or Australia.
Should Power Metal encounter exceptional
new opportunities outside the above areas
it will consider further acquisitions but
only on the right commercial terms. It should
be noted that many of the Company's previous
acquisitions have used Power Metal equity
as a large portion of consideration. With
the share price trading at a circa 55% discount
to the high in January 2021, the Company
is reluctant to utilise equity for acquisitions
at this time and it makes commercial sense
to limit any equity based acquisition approach
at current share price levels.
-------------------------------------------------
Power Capital Investments Power Capital Investments ("Power Capital")
Limited continues to work on a number of initiatives
Global Resource targeting individual or smaller corporate
Project Incubator owned opportunities.
(Multi-Commodity) Limited information will be provided in
POW: 100% respect of the above Power Capital projects
to preserve commercial sensitivity, notably
where work is needed to secure exploration
licences or to protect commercial partners.
At present none of the Power Capital projects
are considered material in the context of
the Power Metal business overall. Should
they become so, further disclosures may
be necessary.
NOTE: A maximum investment level of GBP100,000
per opportunity has been established and
a minimum 50% Power Capital holding interest
in any opportunity following Power Capital's
investment.
-------------------------------------------------
Management and Financial
Project Latest Position
Board The Board currently comprises:
Scott Richardson Brown - Interim Non-executive
Chairman
Paul Johnson - Chief Executive Officer
Ed Shaw - Non-executive Director
Power Metal is seeking to appoint new board
members and expects to make additional announcements
in this regard in the current quarter.
-----------------------------------------------------------------
Management and Team The Company operates a hub and spoke operational
management style coordinating and controlling
global business operations from its UK operational
head office based in Farnborough, UK.
In 2021 with the growth of our business
portfolio, and the success of exploration
and commercial ventures, we have built the
Head Office team with additional team members
covering:
* exploration management,
* commercial management,
* financial and administrative support, and:
* marketing & communications
We are seeking to optimise resources, and
our Head Office team will be deployed to
support Power Metal central activities and
also to support spin-out vehicles, managerially
and administratively, sharing the Power
Metal team operational costs with spin-out
vehicles.
Power Metal is actively seeking to bring
new team members in to support the growth
in business activities and has launched
a "Join-Us" page on the Company's website
with further details. This may be viewed
through the following link:
https://www.powermetalresources.com/join-us/
-----------------------------------------------------------------
Financial Position Power Metal Financial Assets
The core of the Company's assets, as with
many other exploration companies, is a portfolio
of capitalised project acquisition and exploration
costs for ongoing projects or loans to subsidiary
companies in respect of project expenditure
("Project Assets").
As at 30/11/2021 the Project Asset value
was GBP3,354,847 in the Company's internal
unaudited management accounts.
The Company's assets also include the planned
spin out/disposal project vehicles ("Pre-IPO
Assets") which includes:
* First Class Metals (Hemlo-Schreiber projects sold to
FCM Sept 21)
* Golden Metal Resources (Nevada
exploration/development)
* First Development Resources (Australia exploration)
* New Ballarat Gold Corporation (Australia
exploration).
Each spin-out/disposal, on successful listing
is expected to add material value to the
Company's balance sheet.
As at 30/11/2021 the Pre-IPO Asset value
was GBP3,709,777 in the Company's internal
unaudited management accounts. This value
does not include the valuation uplift from
acquisition cost to pre-IPO value.
Power Metal also holds listed investments
including shares and warrants of currently
listed junior resource companies ("Listed
Assets"). The Listed Assets are readily
tradable and provide the Company with a
source of cash if needed.
As at 30/11/2021 the Listed Asset value
was GBP1,079,128 in the Company's internal
unaudited management accounts.
In addition to the above the Company maintains
material cash balances which includes GBP,
USD, CAD, AUD and Pula currencies ("Cash
Assets").
As at 30/11/2021 the Cash Asset value was
GBP1,962,561 in the Company's internal unaudited
management accounts (including the November
2021 financing, which was received in full
in December 2021).
Overall, as at 30/11/2021 including all
categories listed above the total unaudited
assets of the Company amounted to GBP10,106,313.
Note: this asset figure does not include
the uplift in value of Golden Metal Resources
or First Development Resources to reflect
the current pre-IPO valuations of both vehicles,
with both vehicles included at acquisition
cost only.
Working Capital
The Company considers Working Capital to
be the money available to deploy on payment
of corporate operational, notably exploration
expenditure. It comprises cash held and
listed investments only and at 30/11/2021
as outlined above amounted to GBP3,041,689.
As Working Capital management is vital,
we monitor this on a weekly basis and as
at 31/12/2021 this amounted to GBP2,907,686.
This is a robust amount of cash and listed
investments as the Company enters 2022.
Future Financing Sources
The Company has multiple sources of additional
financing.
As demonstrated in November 2021, traditional
equity financing can be undertaken to raise
additional sums where considered necessary.
Furthermore, the Company has issued warrant
instruments during financings and project
acquisition transactions, some of which
are currently in-the-money, but most are
at higher prices to the current mid market
share price.
In addition, the Company has issued options
to management, staff, advisors and consultants,
as part of team incentivisation.
Table 1 below provides a full breakdown
of all warrants and options outstanding
as at 31/12/2021.
The warrants and options above, if exercised
in full, will bring GBP8,406,213 additional
cash into the Company, largely at exercise
prices considerably higher than the current
market share price (or GBP9,406,213 if Thor
Mining plc exercise their 4p warrants within
12 months and exercise replacement warrants
at an exercise price of 8p).
In addition to the above, the Company will
benefit from the planned listing of four
pre-IPO vehicles as outlined above which
will, if successful and in line with expected
valuations on listing, add considerably
to overall Power Metal asset value. Subject
to any applied lock-in on listing, the shares
held on IPO will form part of listed asset
investments and provide an additional pool
of working capital to the Company.
It is anticipated that further value generative
events may occur including additional spin-outs
into new listed vehicles and outright disposal
of certain business interests. The level
of such corporate activity is dependent
on demand for new vehicles, predominantly
in the London capital markets, and also
the level of M&A activity in the junior
resource sector. In the latter regard the
Power Metal board, from acquisitive interest
already demonstrated across the Company's
portfolio, expect a heightened level of
corporate activity in 2022.
-----------------------------------------------------------------
Audit and Compliance Power Metal continues to work with One Advisory,
its financial and compliance service partner,
to liaise with auditors PKF, and the financial
results for the year ended 30 September
2021 are expected to be published in February
2022.
Power Metal continues to bolster its Environmental,
Social and Governance initiatives and expects
to publish further information in this regard
in the coming quarter covering the various
measures implemented.
In 2020 the Company undertook a Finance,
Administration and Compliance Protocols
and Procedures Review to further improve
its underlying Governance. This review is
being updated currently to ensure all areas
are fully updated with business developments.
As part of this the Company has now completed
detailed business process mapping across
all key corporate activities. In addition,
Power Metal has recruited a new Commercial
Manager onto the team to prepare business
organisational structure charts, detailed
business process flows, a live corporate
and licence database and a full business
information managed database.
These measures are considered necessary
as the Company expands in size, scale and
breadth of corporate and exploration activities.
-----------------------------------------------------------------
Table 1: Power Metal Resources plc - Share Warrants and Options
Outstanding at 31/12/2021
Financial Instrument Type Note Number Exercise Expiry POW Receives
Price Month on Exercise
Dec-19 Financing Warrants
- POW Director Held 11,250,000 0.7p Mar-22 GBP78,750
------------ --------- ------- -------------
Jul-20 Financing Warrants
- POW Director Held 27,500,000 0.75p Jul-22 GBP206,250
------------ --------- ------- -------------
Jul-20 Financing Warrants
- General Holders 70,706,079 0.75p Jul-22 GBP530,296
------------ --------- ------- -------------
Nov-21 Financing Warrants
- General Holders 66,000,000 3.5p Dec-23 GBP2,310,000
------------ --------- ------- -------------
TOTAL FINANCING WARRANTS 175,456,079 GBP3,125,296
----------- ------------ --------- ------- -------------
Alamo Gold Project Acquisition 15,500,000 1p Jul-23 GBP155,000
------------ --------- ------- -------------
Kavango - Strategic JV Earn-in
Super Warrants 5,000,000 5p Jul-23 GBP250,000
------------ --------- ------- -------------
Silver Peak Acquisition
(Signing) 9,000,000 1.75p Sep-23 GBP157,500
------------ --------- ------- -------------
Silver Peak Acquisition
(Earn-in Complete) 2,569,641 2.89p Mar-24 GBP74,263
------------ --------- ------- -------------
Garfield/Stonewall Acquisition 2,250,000 3.75p Jun-23 GBP84,375
------------ --------- ------- -------------
First Development Resources
Acquisition 13,333,333 4.5p Oct-24 GBP600,000
------------ --------- ------- -------------
First Development Resources
Acquisition 10,000,000 5p Oct-24 GBP500,000
------------ --------- ------- -------------
Pilot Mountain Acquisition (i) 12,500,000 4p Oct-24 GBP500,000
----------- ------------ --------- ------- -------------
TOTAL TRANSACTION WARRANTS 70,152,974 GBP2,321,138
----------- ------------ --------- ------- -------------
Advisor/Consultant Options 15,000,000 2p Jul-23 GBP300,000
------------ --------- ------- -------------
POW Team (Non-Board Options) (iv) 25,000,000 3.25p Jul-24 GBP812,500
----------- ------------ --------- ------- -------------
POW Director Options 1,000,000 5p Jul-23 GBP50,000
------------ --------- ------- -------------
27,227,858 1p Feb-22 GBP272,279
-------------------------------------------- ------------ --------- ------- -------------
15,000,000 1p Feb-23 GBP150,000
-------------------------------------------- ------------ --------- ------- -------------
20,000,000 2p Jul-23 GBP400,000
-------------------------------------------- ------------ --------- ------- -------------
(ii)(iv) 10,000,000 3.25p Jun-24 GBP325,000
-------------------------------------------- ------------ --------- ------- -------------
(iii)(iv) 20,000,000 3.25p Aug-24 GBP650,000
-------------------------------------------- ------------ --------- ------- -------------
TOTAL BOARD, STAFF, CONSULTANT (v) 133,227,858 GBP2,959,779
& ADVISOR OPTIONS
----------- ------------ --------- ------- -------------
TOTAL ALL WARRANTS AND OPTIONS 378,836,911 GBP8,406,213
------------ --------- ------- -------------
Notes:
(i) If exercised within 12 months replacement warrants issued
at an 8p exercise price
(ii) Subject to Shareholder Approval at General Meeting
(iii) Subject to completion of six month's service
(iv) Exercise subject to POW trading at a volume weighted
average price of 5p for ten trading days
(v) A further 97,500 options remain outstanding from October
2012, at an exercise price of GBP6.00 each, expiring in October
2022
COMPETENT 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 Competent 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.
Reference Notes:
1 Power Metals company announcement , 24 September 2021: ( source: https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/x4919kw )
2 Power Metals company announcement , 2 August 2021: ( source: https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rg745jr )
3 Power Metals company announcement , 6 May 2021: ( source: https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rnp73px )
4 NI43-101: Canadian National Instrument 43-101: Standards of
Disclosure for Mineral Projects ( for background reference see:
https://www.osc.ca/en/securities-law/instruments-rules-policies/4/43-101/mining-disclosure-essentials-ni-43-101-reporting-fundamentals-industry-best-practices-and-useful
)
5 The top jurisdiction in the world for investment based on the
Investment Attractiveness Index is Nevada based on the Fraser
Institute Annual Survey of Mining Companies, 2020 (see:
https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2020
)
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
NOTES TO EDITORS
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 and assay
Project to 75% test pits and mapping results from on-site
& sampling. work programme.
---------- ---------- ------------------------ ----------------------
Authier North Canada Earn-in Soil & rock sampling Laboratory assay
Lithium to 100% completed results of samples
collected
---------- ---------- ------------------------ ----------------------
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
areas
---------- ---------- ------------------------ ----------------------
Molopo Farms Botswana 53%(1) 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
completed
---------- ---------- ------------------------ ----------------------
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%(2) Passive seismic Results awaited
Project and 2D seismic
processing work
programme completed
---------- ---------- ------------------------ ----------------------
(1) should Kavango exercise their option to acquire Kalahari
Key, Power Metal interest would reduce to 40% of the Molopo Farms
Complex project
(2) 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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDEAAFLEFLAEAA
(END) Dow Jones Newswires
January 05, 2022 02:00 ET (07:00 GMT)
Grafico Azioni African Battery Metals (LSE:ABM)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni African Battery Metals (LSE:ABM)
Storico
Da Apr 2023 a Apr 2024
