REG - Power Metal - Insider Warrant Extension

Power Metal ResourcesAnnouncement

17/06/2022 15:00

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RNS Number : 3398P  Power Metal Resources PLC  17 June 2022

17 June 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 the December 2019 financing warrants held by Paul
Johnson and Edmund Shaw, Directors of the Company (the "Insider Warrants").

Extension of Insider Warrants

As at 17 June 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, then a further 3 months to 17 June 2022
as announced on 17 March 2022.

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

North America:

-      Preparatory work for the planned near-term London listing of
Golden Metal Resources PLC focused on Nevada, USA

 

-      Receipt and review of exploration findings relating to the Alamo
gold project in Arizona, USA

 

-      Finalisation of next stage exploration work in respect of the
Authier lithium project in Quebec, Canada

 

-      Finalisation of next stage exploration and specific corporate
activities related thereto for the Athabasca Basin uranium interests,
Saskatchewan, Canada

 

-      Next stage plans in respect of the Silver Peak project in British
Columbia, Canada

Africa:

-      Diamond drill programme underway at the Ditau Camp Project JV in
southwest Botswana

 

-      Field work to delineate drill targets in the Kalahari Copper Belt
JV interests in Botswana

 

-      Corporate work and next stage exploration planning in respect of
the Molopo Farms Project in southwest Botswana

 

-      Finalisation of next stage plans for the Tati greenstone gold
project in Botswana

 

-      Interpretation of diamond drill results and next steps for the
Haneti Project in Tanzania, including development of lithium opportunities

Australia:

-      Preparatory work for the planned near-term London listing of First
Development Resources PLC focused on Western Australia and Northern Territory
exploration interests

 

-      Further desktop, field and drill results from the New Ballarat
Gold Corporation Victoria goldfields JV, following recent diamond drill
programme, and matters pertaining to the planning for a listing of the holding
company

 

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)
cannot be exercised on the expiry date of 17 June 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
to a new expiry date of 31 December 2022. No other changes to the terms of the
Insider Warrants have been made.

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 31 December 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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