REG - Power Metal - Golden Metal Resources – Pre-IPO Financing

Power Metal ResourcesAnnouncement

09/12/2021 10:20

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RNS Number : 1281V  Power Metal Resources PLC  09 December 2021

9 December 2021

Power Metal Resources PLC

("Power Metal" or the "Company")

Golden Metal Resources - Pre-IPO Financing £750,000

Power Metal Subsidiary Golden Metal Resources Raises £750,000 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 wholly-owned subsidiary Golden Metal Resources Limited ("Golden
Metal" or "GMT") has completed its £750,000 Pre-IPO financing ("Financing").

 

Golden Metal is a Nevada, USA, focused exploration and development company and
is undertaking a planned listing on the London capital markets in 2022.

 

The latest exploration update in respect of Golden Metal is available through
the following link:

 

https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-exploration-update/15229671
(https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-exploration-update/15229671)

 

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

"With Golden Metal Resources we have created an attractive Nevada, USA,
focused investment opportunity, which we plan to list on the London capital
markets as soon as possible.

The Nevada portfolio is carefully balanced, including the Pilot Mountain
project which hosts a substantial JORC compliant tungsten focused resource,
(with copper, silver and zinc in addition) which we believe has significant
exploration potential and development upside.

The portfolio also includes Golconda Summit, where Golden Metal can earn a
100% interest, positioned in a neighbourhood of dramatic Carlin-style gold
deposits and where our initial exploration work has indicated the potential
for a significant gold discovery.

The Financing announced today means Golden Metal becomes self-financed and
Power Metal will no longer be required to fund Golden Metal operations but
instead will be a major strategic Golden Metal shareholder.

Alongside self-financing, Golden Metal has its own dedicated management team
with broad spectrum knowledge and capabilities, and above all with the energy
and focus to drive this exciting new junior exploration opportunity forward
within the London markets."

 

HIGHLIGHTS:

-      Capital restructuring of Golden Metal share capital underway to
enable additional shares to be issued and to amend the underlying Par Value in
readiness for the planned listing of Golden Metal ("Restructuring").

 

-      Golden Metal has raised £750,000 through a Pre-IPO financing
undertaken with First Equity Limited, corporate broker, at a price of 6.67p
per Golden Metal new ordinary share of 1 pence each ("Ordinary Share), which
will represent 18.75% of the issued share capital of Golden Metal on
completion of the Restructuring and the Financing.

 

-      50% of Financing monies will be payable to Golden Metal by
31.12.21 and 50% by 31.01.22 whereupon Financing completion will occur
("Completion") and shares will be issued to Financing participants.

 

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

 

-      Following the Restructuring and completion of the Financing, Power
Metal will hold a total of 49,874,437 Ordinary Shares representing 83.13% of
Golden Metal.

 

-      On the basis of issued share capital on completion of the
Restructuring and Pre-IPO Financing the valuation of Golden Metal will be
circa £4million, and Power Metal's 83.13% holding will be valued at circa
£3.33million.

 

-      The monies raised enable Golden Metal 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 and director
of Golden Metal has subscribed for £50,000 (749,625 Ordinary Shares) in the
Financing.

 

-      Should Golden Metal not be listed  on a recognised stock exchange
in London within 12 months of today's date, subscribers to the Financing may
elect to sell back their Golden Metal shares to Power Metal at the financing
price of 6.67p, with the number of Power Metal shares to be issued based on
the ten day volume weighted average price of Power Metal shares immediately
prior to the 12 month anniversary ("Buyback Right") of today's date.  Paul
Johnson, CEO of Power Metal, has elected to relinquish this Buyback Right.
Power Metal will also not hold the Buyback Right.

 

-      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.

 

 

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 (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 results from on-site work programme.
 Athabasca Uranium           Canada     100%             Phase I field exploration completed                                           Laboratory assay results of samples collected for uranium and REEs
 Authier North Lithium       Canada     Earn-in to 100%  Soil & rock sampling completed                                                Laboratory assay results of samples collected
 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%              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
 Victoria Goldfields         Australia  49.9%            Ongoing exploration across 848km(2) of granted exploration licences           Results from field programme including drill targets for near term drilling

 Wallal Gold/Copper Project  Australia  83.33%(1)        Passive seismic and 2D seismic processing work programme completed            Results awaited

(1) 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 Limited shares to vendors.

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