REG - Power Metal - Kalahari Key Botswana – Kavango Update

Power Metal ResourcesAnnouncement

21/03/2022 14:00

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RNS Number : 4733F  Power Metal Resources PLC  21 March 2022

21 March 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Kalahari Key Botswana - Kavango Update

 

Power Metal Resources plc (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
notes the announcement made today by Kavango Resources plc ("Kavango") with
regard to its proposed acquisition of the majority of Kalahari Key Mineral
Exploration Pty Limited ("Kalahari Key").

An extract from the Kavango announcement is provided below:

"Further to the announcement on 02 March 2022, Kavango Resources plc (LSE:KAV)
announces it proposes to make an offer to acquire 100 per cent of the issued
share capital of Kalahari Key Mineral Exploration Proprietary Ltd ("KKME")
(the "Provisional Offer").

KKME has a 60% effective economic interest in the Molopo Farms Nickel
Exploration Project, Botswana.

The Provisional Offer will replace the proposed deal terms outlined in the
Work Programme Option announcement (announced 26 November 2021).

Subject to the Provisional Offer being accepted by the holders of at least 90
per cent of the shares in KKME, Kavango will publish a detailed exploration
plan on Molopo Farms, potentially including immediate diamond core drilling.

Further announcements will be made in due course."

 

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

"As previously stated Power Metal is supportive of Kavango's interest in
Kalahari Key and remains so today.  The Molopo Farms Complex Project has been
notably successful, with nickel discovered in the first drill programme and it
is time to get on with the job of exploration to take this project forward.

To be clear, whilst selling Power Metal's shares in Kalahari Key should the
above offer proceed, Power Metal would retain its separate 40% interest in the
Molopo Farms Complex Project."

 

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.

 

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 and assay results from on-site work programme.
 Athabasca Uranium      Canada     100%             Data compilation across uranium properties                                       Interpretation results from 5 of 7 properties.
 Authier North Lithium  Canada     Earn-in to 100%  Soil & rock sampling completed                                                   Interpretation of laboratory assay results of samples collected defining next
                                                                                                                                     exploration steps.
 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%(A)           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.
 Haneti Project         Tanzania   35%              Diamond drill programme completed                                                Laboratory assay results awaited.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme underway                                                 Field updates and Laboratory assay results awaited.

 Paterson Projects      Australia  83.33%           Wallal passive seismic and 2D seismic processing work programme completed.       Findings from multiple work programmes including final approvals and

                                                                                preparations for planned deep diamond drilling.
                                                    Review of historical data and target generation for Ripon Hills & Braeside
                                                    West projects

(A) should Kavango exercise their option to acquire Kalahari Key, Power Metal
interest would reduce to 40% of the Molopo Farms Complex project

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