REG - Power Metal - Exercise of Options and Director Option Update

Power Metal ResourcesAnnouncement

17/02/2022 17:30

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RNS Number : 0578C  Power Metal Resources PLC  17 February 2022

 

17 February 2022

Power Metal Resources plc ("Power Metal" or the "Company")

Exercise of Options and Director Option Update

 

Power Metal Resources plc (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an update regarding Company options.

 

Option Exercise

 

Power Metal has received notices to exercise options by a former director over
11,113,929 new ordinary shares of 0.1 pence each in the Company ("Option
Shares") at an exercise price of 1.0 pence per new ordinary share raising an
additional £111,139 for the Company.

 

Director Option Update

 

On 15 February 2019 Paul Johnson, Chief Executive Officer of the Company was
awarded 13,613,929 options to subscribe for new ordinary shares of 0.1 pence
each in the Company at an exercise price of 1.0p ("Director Options").  The
Director Options had an expiry date of 15 February 2022.

 

On 15 February 2022 Paul Johnson was unable to exercise the Director Options
being in a close period due to finalisation of the Company's audited financial
statements for the year ended 30 September 2021 and due to possession of
inside information in relation to the Company's exploration and corporate work
activities.

 

Under the Director Option agreement clause 3.5 states:

 

"In the event the Option Holder is in possession of relevant price sensitive
information or is restricted from dealing pursuant to the provisions of the
Market Abuse Regulations or by any other share dealing code, applicable law or
regulation and is thereby precluded from exercising the Options or any part
thereof immediately prior to the Final Exercise Date, then the Final Exercise
Date shall be deemed to be extended until the date which falls 10 business
days after the later of the date on which the Option Holder ceases to be an
insider or the date on which the close period or other prohibited period ends
or is otherwise no longer prohibited."

 

The Director Options are thereby automatically extended under clause 3.5 as
outlined above.

 

Recognising the level of operational activity and anticipated news flow in the
near term it is considered unlikely that the Director Options will be freely
exercisable for some time and therefore the Company has agreed that the
Director Options may be exercised up to 15 May 2022. All other terms of the
Director Options remain unchanged.

 

Related Party Note

The extension of the Director Options held by Paul Johnson as outlined above,
has been treated as a related party transaction pursuant to AIM Rule 13 of the
AIM Rules for Companies.

Scott Richardson Brown and Edmund Shaw, being the independent Directors for
the purposes of the extension of the expiry date of the Director Options held
by Paul Johnson consider, having consulted with the Company's nominated
adviser, SP Angel, that the extension of the expiry date to 15 May 2022 of the
Director Options held by Paul Johnson to be fair and reasonable insofar as the
Shareholders are concerned.

 

 

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 11,113,929 Option Shares to be admitted to
trading on AIM which is expected to occur on or around 24 February 2022
("Admission"). The Option 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 1,466,953,915 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.

 

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.

 

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 or Underway                                                    Results Awaited

 Alamo Gold Project                        USA        Earn-in to 75%   Excavation of multiple test pits and mapping & sampling.                      Field and assay results from on-site work programme.
 Athabasca Uranium                         Canada     100%             Data compilation across uranium properties                                    Interpretation results from 5 of 7 properties.
 Authier North Lithium                     Canada     Earn-in to 100%  Soil & rock sampling completed                                                Interpretation of laboratory assay results of samples collected defining next
                                                                                                                                                     exploration steps.
 Ditau Project                             Botswana   50%              Preparatory exploration work underway on target I10 leading to planned        Field programme findings and defined drill targets for near term drilling.
                                                                       accelerated drilling targeting rare-earth elements and base metals

 Kalahari Copper Belt                      Botswana   50%              Exploration programme underway across the South Ghanzi Project and further    Field programme findings and defined drill targets for near term drilling.
                                                                       exploration at the more recently acquired South Ghanzi Extension and Mamuno
                                                                       licence areas
 Molopo Farms                              Botswana   53%(A)           Kavango Option to acquire an interest in local project holding company.       Results from various work activities underway as part of the Kavango Option.
                                                                       Option fee payable through defined work programme
 Tati Gold/Nickel                          Botswana   100%             Reverse circulation drill programme completed                                 Laboratory assay results awaited.
 Haneti Project                            Tanzania   35%              Diamond drill programme completed                                             Laboratory assay results awaited.
 Selta Uranium Rare Earth Element Project  Australia  83.33(B)         Geological, geophysical and geochemical review across the project.            Findings of review including confirmation of key targets for next stage
                                                                                                                                                     exploration.
 Victoria Goldfields                       Australia  49.9%            Diamond drill programme underway                                              Field updates and Laboratory assay results awaited.

 Wallal Gold/Copper Project                Australia  83.33%(B)        Passive seismic and 2D seismic processing work programme completed.           Findings from multiple work programmes including target refinement for planned

                                                                             deep diamond drilling.
                                                                       Review of now completed ground reconnaissance work underway.

( )

(A) should Kavango exercise their option to acquire Kalahari Key, Power Metal
interest would reduce to 40% of the Molopo Farms Complex project

(B) 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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