REG - Power Metal - Kalahari Key Update – Ditau Drilling Commences

Power Metal ResourcesAnnouncement

22/03/2022 14:15

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RNS Number : 6377F  Power Metal Resources PLC  22 March 2022

22 March 2022

Power Metal Resources plc

("Power Metal" or the "Company")

Kalahari Key Update - Ditau Camp Project Drill Programme Commencement

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 certain Botswana interests.

Proposed Offer for Kalahari Key

Further to previous announcements, Kavango Resources plc ("Kavango")(LON:KAV)
has at this time withdrawn from making an offer for the entire issued share
capital of Kalahari Key Mineral Exploration Pty Limited ("Kalahari Key" or
"KKME") in order to focus on its other business interests.

Kavango made a proposal that was supported by the majority of Kalahari Key
shareholders, including Power Metal. It was not possible, on the timescale
required, to secure unanimous support to move the proposal forward and
therefore with the upcoming planned drill programme at Ditau, Kavango have
decided to withdraw their proposal.

Kalahari Key has a 60% interest in the Molopo Farms Complex Project
("Molopo").  Molopo is targeting nickel sulphides, copper and platinum group
elements in Botswana.

Power Metal holds 5,313 shares in Kalahari Key (circa 21.5% of the issued
Kalahari Key shares) and together with an earned-in 40% direct Molopo project
interest has an effective economic interest of circa 53% in Molopo.

Power Metal will now engage with Kalahari Key and its shareholders to review
alternative strategies and take Molopo forward.

 

Ditau Camp Drill Programme

 

Power Metal has a 50% interest (with Kavango 50%) in the Ditau Camp Project
("Ditau") in Botswana.

Following site preparations, a diamond drill rig is now mobilising to the
first drill location, targeting rare earth elements through the drilling of
potential carbonatites at Ditau.

A further update will be released by Kavango and Power Metal, providing
further information with respect to key drill targets and drill plans in the
coming days.

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

"I would have preferred to announce that the Kavango proposal to acquire
Kalahari Key was proceeding with full Kalahari Key shareholder approval.
Unfortunately, corporate activities don't always go according to expectations,
particularly where ownership of a company is fragmented with varying minority
interests.

Life goes on and the default position is that Power Metal retains its circa
53% effective interest in the Molopo Farms Complex Project and will now liaise
with Kalahari Key to see what should be done to move things forward.
Expeditious solutions are key here.  Molopo is in my view a superb
exploration opportunity with nickel sulphides confirmed through our first
drill programme and we should look to move the project forward with due
dispatch.

Turning to Ditau, I am extremely happy to see this drill programme launched,
having followed the Ditau Camp project for years, I think we have real
potential to make company changing discoveries.  A further detailed update on
the planned drill programme will be released to market shortly.  Meanwhile
the rig is now mobilising to site."

 

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                                                   Technical Review of exploration results & define next exploration steps.
 Ditau Project          Botswana   50%              Drill programme focused on key targets notably drilling of potential             Field updates and receipt & review of laboratory assay results.
                                                    carbonatites and targeting rare-earth elements.
 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%              Review of recent exploration findings.                                           Determine next exploration steps and action plan.
 Tati Gold/Nickel       Botswana   100%             Reverse circulation drill programme completed                                    Receipt & review of laboratory assay results.
 Haneti Project         Tanzania   35%              Diamond drill programme completed                                                Receipt & review of laboratory assay results.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme underway                                                 Field updates and receipt & review of laboratory assay results.

 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.

 Selta Project          Australia  83.33%           Field reconnaissance work now underway, including mapping and sampling.          Field updates.

 

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