REG - Power Metal - Additional Financing Raising £280,000

Power Metal ResourcesAnnouncement

05/09/2022 11:00

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RNS Number : 2778Y  Power Metal Resources PLC  05 September 2022

5 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Additional Financing Raising £280,000

 

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces it has completed a further placing of £280,000 with a single new
investor in the Company.

Together with the £800,000 fundraise announced earlier today, the additional
placing of £280,000 brings the total raised to £1,080,000 before expenses.

Paul Johnson, Chief Executive Officer of Power Metal Resources plc,
commented:

"Power Metal welcomes the additional amount raised  of a further £280,000
notably through a single investor, a client of our broker First Equity
Limited.

This additional amount will provide Power Metal yet greater financial
firepower as we embark upon what I consider to be one of the most important
phases in our corporate history."

 

FINANCING FURTHER INFORMATION

§ The Company has raised £280,000 before expenses through the issue of
20,000,000 new ordinary shares of 0.1p each in the Company (the "Financing
Shares") at an issue price of 1.4p per share, the closing market bid price on
2 September 2022.

 

§ Each Financing Share has an attaching warrant to subscribe for one new
ordinary share of 0.1p each ("Ordinary Share") at an exercise price of 2.0p
with a 12-month term from 19 September 2022 ("Financing Warrant") creating
20,000,000 Financing Warrants.

 

§ Should the Power Metal share price exceed a volume weighted average share
price of 10p for five trading days Power Metal may issue a written notice to
the Financing Warrant holder providing ten trading days to exercise the
Financing Warrants and ten further trading days to make payment of exercise
monies or the Financing Warrants may be cancelled.

 

§ The Financing was undertaken by the Company's joint broker First Equity
Limited.  Power Metal has issued First Equity Limited with 2,000,000 warrants
to subscribe for new Ordinary Shares on the same terms as the Financing
Warrants.

 

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 20,000,000 Financing Shares to be admitted to
trading on AIM which is expected to occur on or around 19 September 2022
("Admission"). The Financing Shares will rank pari passu in all respects with
the ordinary shares of the Company currently traded on AIM.

Following Admission, the Company's issued share capital will
comprise 1,614,654,921 ordinary shares of 0.1p each. This number will
represent the total voting rights in the Company and may be used by
shareholders as the denominator for the calculation by which they can
determine if they are required to notify their interest in, or a change to
their interest in, the Company under the Financial Conduct Authority's
Disclosure and Transparency Rules.

 

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/
(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 - 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.

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with
results awaited, as outlined in the table below.

 

 Project                Location  Current          Work Completed or Underway                                                    Results Awaited

                                  POW %

 Athabasca Uranium      Canada    100%             Ground exploration programme underway at 3 properties.  Continuing data       Results from ground exploration including spectrometer analysis, sampling and
                                                   analysis across the property portfolio.                                       mapping.
 Authier North Lithium  Canada    Earn-in to 100%  Property Evaluation Report completed.                                         Update covering exploration plans for target areas identified during the
                                                                                                                                 Evaluation.
 Molopo Farms           Botswana  53%(#)           Final preparations for the launch of K1-6 conductor target drilling and MLEM  Commencement of T1-6 drill programme, and findings therefrom and results from
                                                   surveys over T1-6, T1-14, T1-3 and T2-3 targets.                              MLEM surveys.
 Tati Project           Botswana  100%             RC drilling and sampling of mine dumps complete.                              Review of mine dumps sampling and results from RC drill programme.

(#) subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%

Exploration work programmes may also be underway within Power Metal investee
companies and planned IPO vehicles where Power Metal has a material interest,
the findings from which will be released on their respective websites, with
simultaneous updates through Power Metal regulatory announcements where
required.  These interests are summarised in the table below:

 

 Company                          Status/Operations                                                           Link
 First Class Metals PLC           Investment - POW 28.19%                                                     www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)

                                  Exploration in the Schreiber-Hemlo region of Ontario, Canada
 First Development Resources PLC  Planned IPO - POW 62.12%                                                    www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)

                                  Exploration in Western Australia and the Northern Territory of Australia
 Golden Metal Resources PLC       Planned IPO - POW 83.13%                                                    www.goldenmetalresources.com (http://www.goldenmetalresources.com)

                                  Exploration and development in Nevada, USA
 Kavango Resources PLC            Investment - POW 14.03% (subject to completion of Kanye Resources disposal  www.kavangoresources.com (http://www.kavangoresources.com)
                                  announced 8.7.22)

                                  Exploration in Botswana
 New Ballarat Gold PLC            Planned IPO - POW 49.9%                                                     A new website is currently in development which will be found at

                                                                           www.newballaratgoldcorp.com (http://www.newballaratgoldcorp.com) .
                                  Exploration in the Victoria Goldfields of Australia

                                                                                                              In the interim further information in respect of NBGC can be found at:

                                                                                                              https://www.powermetalresources.com/project/victoria-goldfields/
                                                                                                              (https://www.powermetalresources.com/project/victoria-goldfields/) .

 

 

 

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