REG - Power Metal - Insider Warrant Update

Power Metal ResourcesAnnouncement

25/04/2023 07:00

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RNS Number : 3589X  Power Metal Resources PLC  25 April 2023

25 April 2023

Power Metal Resources plc ("Power Metal" or the "Company")

Insider Warrant Update

 

Power Metal Resources plc (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces a warrant update.

The Company would refer readers to its announcement of 24 October 2022 wherein
warrants to subscribe for new ordinary shares of 0.1p in Power Metal at an
exercise price of 0.75p per share ("Insider Warrants"), held by Company
directors, could not be exercised at the original expiry date of 20 July 2022
("July 2020 Warrants") and were extended to an expiry date of 21 April 2023 as
a result.

The Insider Warrants were issued to directors following their participation in
a Company financing in July 2020.

The Insider Warrants are held by Paul Johnson, former Director and Chief
Executive Officer of the Company and Ed Shaw, Non-executive Director (together
the "Insiders") as follows:

 Warrant Holder  Number of Warrants  Exercise Price

 Paul Johnson    20,000,000          0.75p
 Ed Shaw         7,500,000           0.75p

 

Current Status of the Insider Warrants

The Insider Warrants remain valid as the Insiders remain unable to exercise at
this time due to ongoing proactive exploration and corporate activities,
reflecting Ed Shaw's director position and Paul Johnson's continuing support
to the Company as outlined in the announcement of 10 March 2023.

This exploration and corporate activity includes, but is not limited to:

-     Exploration results expected to be released from the Molopo Farms
Complex Project and Tati Project in Botswana and the Berringa Project in the
Victoria Goldfields, Australia, and

-     Developments in respect of the Company's Athabasca uranium interests
in Saskatchewan, Canada.

-     Advanced spin-out IPOs and disposal activities across multiple
project interests.

Under the July 2020 Warrant instrument Clause 2.3 provides that should any
July 2020 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.

It is the Insiders' intention to exercise the warrants as soon as they are
free to do so however given the level of activity within the Company this may
not be possible for some time.

The Insider Warrants remain available to exercise under Clause 2.3 however the
Company has extended the expiry date on the warrants to 21 October 2023 to
reflect the limitations on exercise as described above.  Should the Insider
Warrants be unexercised on 21 October 2023, the Insiders must either give an
irrevocable commitment to exercise the Insider Warrants when next able to so
do, or the Board may consider a further extension.

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.

Sean Wade, Scott Richardson Brown and Owain Morton being the independent
Directors 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 21 October 2023 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
 Sean Wade (Chief Executive Officer)                                             +44 (0) 20 3778 1396

 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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