REG - Power Metal - Golden Metal Resources - Company Update

Power Metal ResourcesAnnouncement

19/07/2022 14:30

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RNS Number : 0159T  Power Metal Resources PLC  19 July 2022

19 July 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Golden Metal Resources - Company 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 from Golden Metal Resources PLC ("Golden Metal" or "Golden
Metal Resources"), the Company's 83.13% owned subsidiary, which is planning to
list in the London capital markets.

Golden Metal holds a 100% interest in three projects (Pilot Mountain, Garfield
and Stonewall) and a right to earn-in to a 100% interest in one further
project (Golconda). All projects are situated in Nevada USA, ranked number 3
in the Fraser Institute Survey of Mining Companies 2021 - Investment
Attractiveness Index.(1)

HIGHLIGHTS:

Operational

-      3D induced polarisation ("IP") survey over Pilot Mountain project
is now underway, a significant milestone, enabling a more detailed assessment
of high priority targets, with follow up drilling planned to commence later
this year to target additional tungsten, copper, silver and zinc resources.

 

-      Detailed planning has been undertaken for initial exploration
programmes at the Golconda project, including utilising historical datasets
which would expedite exploration plans and targeting a gold discovery in the
known Carlin-type geological environment surrounding Golconda.

 

-      High resolution soil geochemical survey currently underway across
the Garfield project targeting additional copper-gold-silver mineralisation
and building on the significant evidence of skarn-type mineralisation
established to date which led to the staking of additional claims expanding
the project.

 

-      Detailed desktop study undertaken for the Stonewall project has
identified multiple targets for follow up exploration programmes.

 

Corporate

·    The most complex area of the pre-IPO process has been undertaken,
namely the removal of the various Australian subsidiaries from the holding
company structure of the Pilot Mountain Project. Golden Metal Resources plc
now has 100% ownership of the two US private companies holding the Pilot
Mountain project.

·    The re-registration of Golden Metal to a PLC was completed earlier
this year, the pre-IPO funds were received in full, and the key technical work
streams (Competent Person's technical reporting, legal due diligence,
financial accounting due diligence and multiple related work streams) have now
been progressed successfully.

·    Golden Metal is in the final stages of finalising its inaugural
Environment Social and Governance ("ESG") report, demonstrating to the market
that it plans on being an ESG leader in the resource exploration and
development space.

·    Following the United States Geological Survey ("USGS") including
tungsten in its 2022 list of critical minerals (released February 2022),
Golden Metal is making progress building connections with various governmental
groups in the USA, in order to increase the awareness of its projects, notably
Pilot Mountain, and exposing the company to various governmental initiatives
to stimulate the production of homeland based critical metal projects.

·    The preparations for Golden Metal's listing on the London capital
markets are now nearing completion and Golden Metal expects to be in a
position shortly where it can move towards the launch of its Initial Public
Offer ("IPO") financing and subject to regulatory approvals, complete its
listing process.

Following the reorganisation of the Pilot Mountain holding company structure
the new Golden Metal organisation structure may be viewed on the Golden Metal
website through the following link:

https://www.powermetalresources.com/golden-metal-resources-company-structure/
(https://www.powermetalresources.com/golden-metal-resources-company-structure/)

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

"Since our last report earlier this year Golden Metal has made extensive
progress and is now in the final stages of preparation for its planned
listing. This has been a complex process where we have removed the Australian
holding companies for the flagship project, Pilot Mountain, and structured its
ownership more appropriately, particularly when it comes to seeking project
engagement with the USA authorities and the private sector, as a wholly owned
subsidiary of a UK company.

We look forward to Golden Metal taking the final steps towards its planned
listing in the London capital markets, where we believe it will attract
considerable investment interest."

Oliver Friesen, Chief Executive Officer of Golden Metal Resources PLC,
commented:

"The team at Golden Metal Resources has done a fantastic job over the past
several months preparing the company for our listing on the London capital
markets. Not only have we achieved several important corporate milestones, but
we have been able to launch exploration on the ground allowing us to push
forward some of the exciting 100% owned projects in  the Golden Metal
portfolio.

We are starting to see a very important shift happening globally, and
specifically in the United States of America where governments are not only
realising the importance of securing domestic sources of critical metals such
as tungsten - but actively making policy changes in order to support companies
who are exploring and developing these strategic projects.

Our 100% owned Pilot Mountain project is now held within a simplified
corporate structure, we have officially launched a very exciting IP geophysics
programme and have begun preparations for a robust diamond drilling campaign
planned for later in the year. All of these factors combined have our team
very excited about what is in store for Golden Metal Resources during the
second half of 2022 and beyond."

Reference

 

(1)
https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2021.pdf

 

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

 

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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