REG - Power Metal - Insider Warrant Extension

Power Metal ResourcesAnnouncement

18/03/2022 15:45

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RNS Number : 3307F  Power Metal Resources PLC  18 March 2022

18 March 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Insider Warrant Extension

 

Power Metal Resources plc (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
announces an extension of December 2019 financing warrants held by Paul
Johnson and Edmund Shaw, Directors of the Company (the "Insider Warrants").

Extension of Insider Warrants

As 17 March 2022 the following Insider Warrants remained outstanding:

 Warrant Holder  Number of Warrants  Exercise Price

 Paul Johnson    6,250,000           0.7p
 Ed Shaw         5,000,000           0.7p

 

The Insider Warrants were issued following participation in the December 2019
financing and had an original expiry date of 17 December 2021 which was
extended by 3 months to 17 March 2022 as announced on 17 December 2021.

The Company is undertaking numerous exploration programmes and corporate
activities across its portfolio where current and near term expected work
streams include:

North America:

-      Progression of the First Class Metals plc and Golden Metal
Resources plc listing processes, and administrative matters related thereto.

 

-      Commercialisation activities in respect of the Silver Peak project
in British Columbia, Canada.

 

-      Technical data compilation review across five of the Company's
seven uranium exploration projects surrounding the Athabasca Basin,
Saskatchewan, Canada, and commercialisation activities in respect of the
Athabasca uranium portfolio.

 

-      Technical review of the Authier North Lithium project, including
additional information following publication of an updated Mineral Resource by
neighbour Sayona Mining(1)

Africa:

-      Matters in relation to the Kavango Resources plc option to acquire
Kalahari Key Mineral Exploration Pty Limited and become a Molopo Farms Complex
("MFC") project partner with Power Metal (expiry 18.3.22) and development of
next stage exploration plans for the MFC project.

 

-      For the Tati Project in Botswana targeting gold/nickel, receipt
and technical review of assay results from the completed reverse circulation
programme, potential additional assay testing and various commercial matters
relating to the Tati Project.

 

-      Preparations in Botswana for upcoming drill programmes at the
Ditau Camp Project targeting rare earth elements and the Kalahari Copper Belt
Project targeting copper/silver mineralisation.

 

-      For the Haneti Project in Tanzania, receipt and technical review
of assay results following the completed diamond drill programme.

 

Australia:

-      For the Victoria Goldfield's project in Victoria, Australia,
exploration field updates and the receipt and review of assay results from a
diamond drill programme. Also, progression of the listing process for the
project holding company, New Ballarat Gold Corporation plc, and administrative
matters related thereto.

 

-      Findings from the field reconnaissance site visits currently
underway for the Wallal Project in Western Australia and Selta Project in the
Northern Territory.  In addition, findings from in-depth desktop reviews of
the Ripon Hills and Braeside West projects in Western Australia. Also,
progression of the listing process for the projects holding company, First
Development Resources Limited, and administrative matters related thereto.

 

As a result, the December 2019 Warrants held by Paul Johnson (Chief Executive
Officer of Power Metal) and Ed Shaw (Non-executive Director of Power Metal)
could not be exercised by the expiry date of 17 March 2022 and may be extended
under the warrant instrument, as outlined below.

Under the December 2019 Warrant instrument clause 2.3 provides that should any
December 2019 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.

Given the level of ongoing operational activity there is a material likelihood
that the receipt of price sensitive information could frequently restrict the
ability of Paul Johnson and Ed Shaw to exercise the December 2019 warrants.

Reflecting the above the Company has extended the Insider Warrants expiry date
by three months to a new expiry date of 17 June 2022.

Notes:

1
https://sayonamining.com.au/wp/wp-content/uploads/2022/03/SYA_Doubling-resource-base_1-Mar-22.pdf
(https://sayonamining.com.au/wp/wp-content/uploads/2022/03/SYA_Doubling-resource-base_1-Mar-22.pdf)

 

Related Party Note

 

The extension of the Insider Warrants held by Paul Johnson and Ed Shaw as
outlined above, have been treated as related party transactions for the
purposes of AIM Rule 13.

Scott Richardson Brown being the independent Director for the purposes of the
extension of the expiry date of the Insider Warrants held by Paul Johnson and
Ed Shaw considers, having consulted with the Company's nominated adviser, SP
Angel, that the extension of the warrant expiry date to 17 June 2022 to such
related parties is fair and reasonable insofar as the Shareholders are
concerned.

 

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.

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