REG - Power Metal - Kalahari Key Botswana - Acquisition Update

Power Metal ResourcesAnnouncement

28/10/2022 10:30

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RNS Number : 4896E  Power Metal Resources PLC  28 October 2022

28 October 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Kalahari Key Botswana - Acquisition 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 in respect of the acquisition of an additional 58.7%
interest in Kalahari Key Mineral Exploration PTY Limited ("Kalahari Key" or
"KKME") (the "Transaction").

Kalahari Key has a single project 60% interest in the Molopo Farms Complex
Project (the "Project' or "Molopo Farms") targeting a large-scale nickel -
platinum group metal ("PGM") discovery in southwest Botswana.

 

The conditional acquisition was originally announced on 18 May 2022 which may
be viewed through the following link:

 

https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701
(https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701)
 

HIGHLIGHTS:

-      The Company has received written confirmation that all Botswana
regulatory approvals required to enable the Transaction to proceed have now
been received.

 

-      Following receipt of the approvals the Company is now working with
the Kalahari Key Board and advisers in Botswana to complete the Transaction.

 

-      Following Transaction completion, Power Metal will hold an 87.71%
interest in Kalahari Key which will hold a 100% interest in Molopo Farms.

 

-      A further announcement to follow shortly including confirmation of
the issue of equity consideration to Kalahari Key shareholders disposing of
their interest to Power Metal.

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

"The receipt of all Botswana regulatory approvals for the Transaction is a
significant event for the Company, and after the various administrative tasks
are completed Power Metal will hold an 87.71% interest in Kalahari Key.

On behalf of Power Metal I would like to thank the authorities in Botswana and
our advisers for their handling of the approvals process, and the Kalahari Key
team who are working with us to complete the Transaction.

Shareholders will be aware we are currently undertaking the largest drill
programme the Company has conducted at Molopo Farms and to complete the
Transaction at this juncture is particularly significant.

Further announcements will follow with regard to Transaction completion and
with operational updates from the Molopo Farms ongoing drill programme."

 

Further information in respect of Molopo Farms may be viewed on the Company's
website through the following link:

https://www.powermetalresources.com/project/molopo-farms-complex/
(https://www.powermetalresources.com/project/molopo-farms-complex/)

In addition photographs and videos from the Project are and will be available
on the Company's website gallery section, through the following link:

https://www.powermetalresources.com/investors/gallery/molopo-farms-complex-botswana/
(https://www.powermetalresources.com/investors/gallery/molopo-farms-complex-botswana/)

 

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.

 

Exploration Work Overview

Power Metal has multiple internal exploration programmes completed or
underway, with results awaited.  The status for each of the Company's
priority exploration projects is outlined in the table below.

 

 Project            Location  Current    Work Completed or Underway                                                     Results Awaited

                              POW %

 Athabasca Uranium  Canada    100%       Ground exploration programme complete at 3 properties.  Preliminary planning   Assay results from samples collected during fieldwork.
                                         for work in Spring/Summer 2023 is ongoing.
 Molopo Farms       Botswana  87.71%(#)  T1-6 conductor target drilling underway. Further MLEM surveys planned over     Drill programme updates and findings from further MLEM survey work.
                                         additional AEM targets identified.
 Tati Project       Botswana  100%       RC drilling and sampling of mine dumps complete.                               Review of mine dumps sampling and assay results from RC drill programme.

(#) following completion of administrative processes for share transfer and
restructuring

 

Exploration work programmes may also be underway within Power Metal investee
companies and 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.  These interests are summarised in the table below:

 

 Company                          Status/Operations                                                           Link
 First Class Metals PLC           Investment - POW 27.91%                                                     www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com/)

                                  Exploration in the Schreiber-Hemlo region of Ontario, Canada
 First Development Resources PLC  Planned IPO - POW 62.12%                                                    www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com/)

                                  Exploration in Western Australia and the Northern Territory of Australia
 Golden Metal Resources PLC       Planned IPO - POW 83.13%                                                    www.goldenmetalresources.com (http://www.goldenmetalresources.com/)

                                  Exploration and development in Nevada, USA
 Kavango Resources PLC            Investment - POW 14.03% (subject to completion of Kanye Resources disposal  www.kavangoresources.com (http://www.kavangoresources.com/)
                                  announced 8.7.22 and issue of Kavango shares e.g. financing announced

                                  24.10.22)

                                  Exploration in Botswana
 New Ballarat Gold PLC            Planned IPO - POW 49.9%                                                     A new website is currently in development which will be found

                                                                           at www.newballaratgoldcorp.com (http://www.newballaratgoldcorp.com/) .
                                  Exploration in the Victoria Goldfields of Australia

                                                                                                              In the interim further information in respect of NBGC can be found at:

                                                                                                              https://www.powermetalresources.com/project/victoria-goldfields/
                                                                                                              (https://www.powermetalresources.com/project/victoria-goldfields/) .

 Uranium Energy Exploration PLC   Planned IPO - POW on listing estimated 40-55%                               www.uraniumenergyexploration.com (http://www.uraniumenergyexploration.com/)

                                  Uranium exploration in the Athabasca region of Canada

 

 

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