TIDMPOW
RNS Number : 5563J
Power Metal Resources PLC
20 August 2019
20 August 2019
Power Metal Resources plc ("POW" or the "Company")
Completion of Strategic and Operational Review
Power Metal Resources plc (LON:POW) the AIM listed African
focused metal exploration and development company is pleased to
confirm the completion of the Company's strategic and operational
review.
HIGHLIGHTS:
-- Strategic and operational review, commenced in February 2019,
now complete and all key restructuring activities essentially
complete;
-- Power Metal Resources to remain focused on large scale metal
discoveries with a focus on nickel, copper and cobalt;
-- Company to continue proactive exploration activities in
Botswana, Cameroon, the DRC and Tanzania;
-- Paul Johnson becomes Chief Executive Officer of the Company with immediate effect.
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc commented: "The key strategic objective of Power Metal
Resources is to make large scale metal discoveries in the power
metal commodities, principally nickel, copper and cobalt.
I am pleased to be given the opportunity to take the role of
Chief Executive Officer and with the support of the team, and
shareholders, I intend to make a long-term commitment to building
Power Metal Resources into one of the strongest exploration and
development companies in London.
In line with this objective we have made a great start in recent
months with exploration success in Cameroon (cobalt) and the DRC
(copper), where both projects have to date exceeded our
expectations.
The Company has also added new operational activities in
Botswana and Tanzania, predominantly nickel focused, and where all
results achieved to date have been highly encouraging.
I would like to thank my fellow directors and our advisory team
for their vital help and support so far in 2019 and also our
shareholders, including those who have held for a long period and
more recent holders. Junior resource exploration is high risk and
at times holding shares can be a tortuous process, not least when
sector conditions are very challenging.
With a fair wind I trust we will deliver the level of returns
that justify your investment."
STRATEGIC AND OPERATIONAL REVIEW
Business Strategy:
-- The key strategic objective of Power Metal Resources is to
make large scale metal discoveries in the power metal commodities,
principally nickel, copper and cobalt;
-- At present the Company's operational interests are African
based however the Company may acquire interests outside Africa
should compelling opportunities arise in the future;
-- In addition, the present focus on the power metal commodities
suite of nickel, copper and cobalt is expected to continue although
the Company is open to other commodity opportunities should
projects prove compelling;
-- The Company is focused on large scale targets and the
application of innovative and cost effective exploration techniques
to control costs while maximising the chance of a discovery or
discoveries;
-- At present the Company has a diverse business model with
multiple project interests and may in time focus the resources of
the business more aggressively toward a project or projects within
our portfolio where accelerated development is justified;
-- The Company will seek to maintain an external dialogue with
larger organisations with a view to project farm-in, joint venture
or disposal, where such steps could materially improve the value of
a project in the interest of shareholders.
Original Project Operations (held by the Company as at February
2019):
-- In February 2019 the Company had original operations in three
countries, Cameroon, the Democratic Republic of the Congo ("DRC")
and the Ivory Coast;
-- Since February we have successfully relaunched active
exploration operations in Cameroon and the DRC, with significant
advancement at both projects achieved in recent months;
-- In Cameroon the Company has confirmed its 100% owned project
licenses share a similar geology to the nearby substantial Nkamouna
cobalt deposit;
-- In the DRC the Company has identified a 6.8km copper anomaly
running through the heart of its 70% owed Kisinka copper-cobalt
license;
-- Additional work programmes will be undertaken in Cameroon and
the DRC projects, reflecting their clear strategic importance to
Power Metal Resources;
-- The Company remains in discussions with the vendors of the
Lizetta II chrome-nickel-cobalt project in the Ivory Coast and is
reviewing the potential development options for that project.
New Acquisitions:
-- Since February 2019 the Company has acquired two additional
project interests in Botswana and Tanzania and taken an option for
due diligence over an additional cobalt license in the DRC;
-- In Botswana the Company has an 18.26% stake in Kalahari Key
Mineral Exploration Pty Ltd ("KKME"), which owns outright a single
project, the Molopo Farms Complex ("MFC") nickel-copper-PGM
project, in South West Botswana (POW can by 31.12.19 elect to
earn-in to a 40% direct MFC project interest by spending US$500,000
on the project by 31.12.20 - upon earn-in POW will hold a 50.96%
effective economic interest in the MFC Project);
-- The KKME team in Botswana have completed the helicopter
airborne electromagnetic work defining 17 sub-surface targets and
very recently the ground geophysics over the top 10 targets, with
interpretation and drill targets to follow shortly;
-- In Tanzania POW has acquired a 25% holding in the Haneti
nickel project held in joint venture with Katoro Gold plc (LON:KAT)
with a right to increase to 35% through a payment of GBP25,000 by
15 May 2020;
-- A drill programme is to be undertaken over the two principal
drill targets at Haneti at the heart of what is considered to be an
80 km potential mineralised strike, and supplementing this, work
has identified the presence of lithium pegmatites;
Management and Administration:
-- The Company has conducted a management and technical advisory
review and as a result of this review Paul Johnson, previously
Executive Director, has become Chief Executive Officer with
immediate effect;
-- In addition, recognising the success of exploration
activities to date and new acquisitions, the Company recognises the
need to add additional technical capabilities at senior management
and consultancy level;
-- Otherwise we are generally pleased with the support provided
by our advisors and consultants to the Company and have established
a cost effective and disciplined system of business
administration.
Finance and Working Capital:
-- Following the restructuring and refinancing the initial
financial focus of the Company was the completion of Audited
Results for the year ended 30 September 2018 and which were
successfully finalised and released on 29 March 2019;
-- In addition, Interim Results for the half year ended 31 March
2019 were completed and released on 11 June 2019;
-- Following completion of the refinancing in February 2019 the
Company paid all material creditor balances through a cash or share
settlement;
-- The Company has no material debt and a secure working capital position.
Marketing and Communications:
-- The Company implemented a name change from African Battery
Metals plc to Power Metal Resources plc with effect from 21 June
2019;
-- A complete overhaul of the Company's website has now been
undertaken and a new corporate presentation prepared for the
website;
-- Various initiatives have been developed and more will be
undertaken to increase awareness of the Company's value
proposition.
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No.596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
For further information please visit
https://www.powermetalresources.com/ or contact:
Power Metal Resources plc
Paul Johnson (Executive Director) +44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat +44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson +44 (0) 1483 413 500
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed African
focused metal exploration and development company exploring for the
key metals used in power generation, transmission, storage and
utilisation. The Board and team of advisors, who have proven
expertise in exploration, mining and project generation, have
identified an opportunity to utilise the Company's position to
become a leader in the London market for investors to gain exposure
to the power metal commodity suite, particularly nickel, copper and
cobalt.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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