REG - Power Metal - Exercise of Warrants & Warrant Update

Power Metal ResourcesAnnouncement

21/07/2022 17:15

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RNS Number : 3593T  Power Metal Resources PLC  21 July 2022

 

21 July 2022

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

Exercise of Warrants & Warrant Update

 

Power Metal Resources plc (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an exercise of warrants and warrant update.

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

"Including the exercise of warrants below, in the last week Power Metal has
announced an additional £382,666 raised through final conversions of the July
2022 expiry warrants. This is a material sum and added to our existing working
capital puts the Company in a strong financial position for the next stage of
its development.

That next stage is potentially the most exciting in our history as Power
Metal, with key exploration programmes planned including those at the Tati and
Molopo Farms Complex projects in Botswana, two of our key internal exploration
interests.

Corporately, we are looking forward to the planned listings of First Class
Metals, Golden Metal Resources and First Development Resources; and the
completion of various other crystallisation events for the Company.

I look forward to Power Metal driving through this next important stage and to
the announcement of key developments as they occur in the coming weeks and
months. To help articulate in full the latest position of all our interests,
Power Metal expects to release its quarterly report for the period April to
June 2022, (including a summary of events so far in July) early next week."

Warrant Exercise

The Company has received notices to exercise warrants over 18,548,700 new
ordinary shares of 0.1 pence each in the Company ("Warrant Shares") at an
exercise price of 0.75p per Warrant Share and raising an additional £139,115
for the Company.

Insider Warrant Update

In the July 2020 financing undertaken by the Company participants received
warrants to subscribe for new ordinary shares of 0.1p in Power Metal at an
exercise price of 0.75p per share with an expiry date of 20 July 2022 ("July
2020 Warrants").

As at the expiry date Paul Johnson, Chief Executive Officer of the Company and
Ed Shaw, Non- executive Director (together the "Directors") held the following
July 2020 Warrants ("Insider Warrants"):

 Warrant Holder  Number of Warrants  Exercise Price

 Paul Johnson    20,000,000          0.75p
 Ed Shaw         7,500,000           0.75p

 

The Insider Warrants were issued following participation in the July 2020
financing.

The Directors are unable to exercise the Insider Warrants due to the extensive
exploration and corporate activities underway within the Company which
preclude exercise at this time.

This activity includes, but is not limited to, the following:

North America

-     Final preparations for the planned listings of First Class Metals
plc (Schreiber-Hemlo  region Canada exploration vehicle - POW 36.3% interest)
and Golden Metal Resources plc (Nevada USA focused exploration and development
vehicle - POW 83.13% interest)

 

-     Exploration and corporate activities in respect of the Company's
Athabasca Basin region uranium interests

Africa

-     Exploration and corporate activities in respect of the Company's
Tati project and Molopo Farms Complex project, in Botswana.

Australia

-     Exploration progress and IPO process in respect of First Development
Resources Ltd, (Western Australia and Northern Territory exploration vehicle -
POW 62.12% interest)

 

-     Exploration and corporate activities in respect of New Ballarat Gold
Corporation plc (Victoria Goldfields exploration and development vehicle -
49.9% POW interest)

Under the July 2020 Warrant instrument Clause 2.3 provides that should any
July 2020 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.

It is the Directors intention to exercise the warrants as soon as they are
free to do so however given the level of activity within the Company this may
not be possible for some time.  In the interim the Insider Warrants will
remain available to exercise under Clause 2.3 and for clarity should the
Insider Warrants not be exercised the Company will provide an update as to
their status 3 months from today's date.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 18,548,700 Warrant Shares to be admitted to
trading on AIM which is expected to occur on or around 28 July 2022
("Admission"). The Warrant 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 1,531,808,465 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.

 

Exploration work programmes may also be underway within 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:

 

www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)

www.goldenmetalresources.com (http://www.goldenmetalresources.com)

www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)

 

Power Metal also holds a material investment in Kavango Resources plc with
exploration updates available through their regulatory announcements and on
their website:

 

www.kavangoresources.com (http://www.kavangoresources.com)

 

 Project                Location   Current          Work Completed or Underway                                                    Results Awaited

                                   POW %

 Alamo Gold Project     USA        Earn-in to 75%   Technical reports received following excavation of multiple test pits and     Analysis of technical reports and potential follow-on work programme under
                                                    mapping & sampling completed.                                                 review.
 Athabasca Uranium      Canada     100%             Hyperspectral data analysis conducted across all 7 properties. Updating to 7  Finalise review of data from 3 properties.  Prepare for summer exploration
                                                    data rooms for third party review.                                            programme across 4 properties.
 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%(#)           Comprehensive data review complete and establishment of data room for third   Finalise next exploration steps and action plan.
                                                    party review.
 Tati Project           Botswana   100%             Site visit with mapping of gold workings and mine dumps.                      Exploration planning underway including further mapping, sampling and launch
                                                                                                                                  of an RC drill programme.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme completed. Review of Ajax & Berringa mine             Final drill programme results analysis and resource potential analysis from
                                                    remaining resource potential.                                                 former high-grade producing mines in granted licences.

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

 

 

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