REG - Power Metal - Financing Raises £1,050,000

Power Metal ResourcesAnnouncement

15/11/2021 07:05

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RNS Number : 3133S  Power Metal Resources PLC  15 November 2021

15 November 2021

Power Metal Resources plc

("Power Metal" or the "Company")

Financing Raises £1,050,000

Power Metal Raises £1.05 million to Accelerate Operational and Strategic
Opportunities

Power Metal Resources plc (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
announces the Company has raised £1.05 million through a placing  of new
ordinary shares of 0.1 pence each in the Company as detailed below (the
"Placing").

HIGHLIGHTS:

-     Power Metal raised £1.05 million at the closing market mid-price
of 1.75p on 12/11/21.

-   Funds raised to enable acceleration of business operations including
strategic exploration activities and corporate opportunities.

-     Power Metal working capital comprising solely cash and listed
investments increases to circa £3million.

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

"The new shares issued in the Placing undertaken by the Company represents
dilution of just 4.5% of current issued share capital and adds a material
further cash resource into the Company at this opportunistic time.

Power Metal has maintained a strong working capital position throughout 2021,
notwithstanding significant investment in exploration and corporate
development.  The Company is now at a key point where extensive exploration
activities are underway and corporate activities are intensifying.

The Placing will allow the Company to expand its exploration budgets,
accelerate corporate work and complete on a number of new initiatives.

The Power Metal board have been unable to participate in this Placing as we
are actively involved in a number of initiatives that due to the possession of
potentially price sensitive information would preclude us from buying the
Company's shares at this time."

FINANCING DETAILS

-    The Company has  raised £1,050,000 through the issue of 60,000,000
new ordinary shares of 0.1p each ("Placing Shares") at an issue price of
1.75p, the closing mid-market price on 12 November 2021.

-     Each Placing Share will have an attaching warrant to subscribe for
a further new ordinary share of 0.1p each ("Ordinary Share") at an exercise
price of 3.5p each with a two year term from the admission of the Placing
Shares ("Placing Warrant") creating 60,000,000 Placing Warrants.

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

-    The Placing was undertaken by the Company's Joint broker First Equity
Limited.Power Metal will issue First Equity Limited 6,000,000 warrants to
subscribe for Ordinary Shares on the same terms as the Placing Warrants.

 ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 60,000,000 Placing  Shares to be admitted to
trading on AIM which is expected to occur on or around 13 December 2021
("Admission"). The Placing 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 1,403,339,987 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.

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal now has the following exploration completed with results awaited
or exploration underway:

-      Authier North Lithium Project (POW 100%)(Canada) - soil & rock
sampling completed (laboratory assay results awaited)

 

-      Athabasca Uranium (POW 100%) (Canada) - Phase I exploration
completed (laboratory assay testing of samples collected, awaited)

 

-      Tati Gold/Nickel Project (POW 100%) (Botswana) - reverse
circulation drilling completed (field results, together laboratory assay
results awaited)

 

-      Molopo Farms Complex (Botswana) - further samples being tested for
nickel sulphide and platinum group elements ("PGEs") from diamond drill
programme completed (laboratory assay results awaited)

 

-      Ditau Project (Botswana) - preparatory exploration work underway
on target I10 in preparation for planned drilling targeting rare earth
elements and base metals

 

-      Kalahari Copper Belt (Botswana) - results from ongoing exploration
across the South Ghanzi Project and further exploration at the more recently
acquired South Ghanzi Extension and Mamuno licence areas in preparation for
planned drilling of copper-silver targets

 

-      Haneti Project (Botswana) - final preparations underway in
preparation for planned deep diamond of nickel sulphide-PGE targets.

 

-      Wallal Gold/Copper Project (Australia) - geophysics results from
2D seismic processing and passive seismic awaited

 

-      Victoria Goldfields (Australia) - results from ongoing exploration
across 848km(2) of granted exploration licences including preparation work for
planned drilling of gold targets

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