REG - Power Metal - First Development Resources - Pre-IPO Financing

Power Metal ResourcesAnnouncement

01/06/2022 07:01

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RNS Number : 4816N  Power Metal Resources PLC  01 June 2022

01 June 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

First Development Resources - Pre-IPO Financing £1,125,000

Power Metal Subsidiary First Development Resources Raises £1,125,000 in
Pre-IPO Financing to Fund its Planned IPO and Operational Expenses

 

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
announces its subsidiary First Development Resources Limited ("First
Development" or "FDR") has undertaken a £1,125,000 Pre-IPO financing
("Financing").

 

FDR is planning to list on the London capital markets in Q3 2022 (the "IPO")
and is focussed on district-scale exploration opportunities in Australia.

 

HIGHLIGHTS

·    First Development has raised £1,125,000 through a Pre-IPO financing
undertaken with SI Capital Limited, corporate broker, through the issue of
16,866,566 new First Development ordinary shares of 1 pence each ("FDR
Ordinary Share") at a price of 6.67p per Ordinary Share, which will represent
27.14% of the issued share capital of First Development on completion of the
Financing.

 

·    50% of Financing monies will be payable to First Development by
10.06.22 and 50% by 10.07.22 whereupon Financing completion will occur
("Completion") and all shares will be issued to Financing participants shortly
after Completion.

 

·    Power Metal has subscribed for £75,000 of the Financing, subscribing
for 1,124,437 FDR Ordinary Shares ("POW Subscription").

 

·    Following Financing Completion, Power Metal will hold a total of
38,605,696 FDR Ordinary Shares representing 62.12% of issued share capital
First Development.

 

·    On the basis of issued share capital of FDR on Completion of the
Pre-IPO Financing the current valuation of First Development will be £4.125
million, and Power Metal's 62.12% holding will be valued at circa £2.562
million.

 

·    The monies raised will enable First Development to fully self-finance
its operations including IPO listing advisory costs, corporate expenses and
various project expenditures.

 

·    Paul Johnson, Chief Executive Officer of Power Metal has subscribed
for £50,000 (749,625 FDR Ordinary Shares) in the Financing.

 

·    No warrants are included automatically with the Financing however
should warrants be offered as part of the planned IPO financing, participants
in this Pre-IPO Financing will receive warrants on the same terms.

 

Tristan Pottas Chief Executive Officer of First Development Resources
Ltd commented:

"The Pre-IPO Financing provides FDR with the necessary working capital to
confidently push ahead with business operations including its planned listing
on the London capital markets.

The FDR business has been built around Australian exploration and notably,
what we believe are high impact opportunities in Western Australia's Paterson
Province and the Northern Territory.

We have been analysing the extensive historical exploration data in and around
our projects since early 2021, securing the benefits and knowledge from work
undertaken by previous licence holders.

Using this core data and the latest in technological innovation in resource
exploration we have been building targets for next stage work, including
gold-copper drill targets at our flagship Wallal Project in the Paterson, and
uranium-rare earth element and potential lithium targets at our Selta Project
in the Northern Territory."

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

"The successful Pre-IPO Financing reported in today's announcement is the
first decisive step on FDR's journey to becoming an independent listed
vehicle. We believe the projects which make up FDR's portfolio present a
compelling investment proposition which we look forward to watching develop
under the management of the FDR board.

The Pre-IPO Financing means First Development becomes financially
self-sufficient and Power Metal will no longer be required to fund FDR
operations in the period leading up to the planned IPO and instead will become
a strategic FDR shareholder.

Of particular note is that Power Metal has now seen three of its project
packages find their own independent corporate pathway, management and
financing including:

-      Disposal of the Company's Schreiber - Hemlo interests in Ontario,
Canada, into First Class Metals plc ("FCM") in September 2021.  Power Metal
currently has a 36.3% interest in the issued share capital FCM, which secured
Pre-IPO financing in September 2021 and is seeking a planned listing this
quarter.

-      Golden Metal Resources plc ("GMT") focused on exploration and
development interests in Nevada, USA, currently 83.13% Power Metal owned. GMT
secured Pre-IPO financing in December 2021 and is seeking a planned listing
this quarter.

-      As announced today, First Development Resources, currently 82.78%
Power Metal owned (62.12% following Completion) focused on Australian
exploration interests and seeking a listing in Q3 2022."

We continue to work on the potential spin-out listing of other business
interests.  This includes our Victorian Goldfields joint venture with Red
Rock Resources plc (LON:RRR) and held through New Ballarat Gold Corporation
plc ("NBGC") where we hold a 49.9% interest."

FDR EXPLORATION INTERESTS

FDR Australia holds the following exploration licence interests:

Wallal Project (Wallal Main-E45/5816 - 390km(2) - granted), (Wallal West
1-E45/5853 96km(2) - granted) and (Wallal West 2 - E45/5880 -
86km(2) - granted).

A comprehensive geophysical review has identified three magnetic bullseye
anomalies located under Phanerozoic sedimentary cover which are interpreted to
have possible geological similarities major Au-Cu deposits within the Paterson
Province including Winu (Rio Tinto) and Havieron (Newcrest Mining-Greatland
Gold joint venture).

Braeside West Project (E45/5854 - 137km(2) - one granted licence)

In-depth desktop analysis of historic exploration data is currently underway
on the Braeside West Project. A recent base-metal discovery by neighbouring
company Rumble Resources Ltd (ASX:RTR) has enhanced the overall prospectively
within the Braeside West Project area as it is hosted within a similar
geological environment to that of Rumble Resources discovery.

Ripon Hills Project (E45/5088 - 42km(2) - one granted licence).

The Ripon Hills Project is prospective for base-metal and gold mineralisation
associated with deep-seated north-south oriented fault structures which run
through the Ripon Hills Project area. In-depth desktop analysis of historic
exploration data is currently underway over the project.

Selta Project (EL 32737, EL 32738, EL 32755 - 1,575km(2) - three granted
licences)

The Selta Project is located in an area considered to be highly-prospective
for uranium and rare earth element mineralisation. FDR recently completed an
in-depth review of all geological, geophysical and geochemical data which also
identified the potential for lithium, gold and base-metal mineralisation as
well as the possibility of tin-tantalum-tungsten rich pegmatites.

IPO AND LISTING PROCESS

FDR is seeking a listing on the London capital markets and is working with
advisors in this regard and is targeting a listing on the London capital
markets in Q3 2022.

 

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 has exploration programmes completed or underway, with results
awaited, as outlined below:

 

 Project                Location   Current          Work Completed or Underway                                                    Results Awaited

                                   POW %

 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 all Properties complete. Next steps upcoming.
 Authier North Lithium  Canada     Earn-in to 100%  Soil & rock sampling completed                                                Technical Review of exploration results & define next exploration steps.
 Ditau Project          Botswana   50%              Drill programme focused on key targets notably drilling of potential          Field updates and receipt & review of laboratory assay results.
                                                    carbonatites and targeting rare-earth elements.
 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%#             Review of recent exploration findings.                                        Determine next exploration steps and action plan.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme underway                                              Field updates and receipt & review of laboratory assay results.

 Paterson Projects      Australia  82.78%*          Wallal passive seismic and 2D seismic processing work programme completed.    Findings from multiple work programmes including final approvals and

                                                                             preparations for planned deep diamond drilling.
                                                    Review of historical data and target generation for Ripon Hills &
                                                    Braeside West projects.

 Selta Project          Australia  82.78%*          Field reconnaissance work complete, which included mapping and sampling.      Finalising data review from field programmes.

* Reducing to 62.12% after Completion of the Pre-IPO Financing

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

 

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