REG - Power Metal - Molopo Farms - Drill Contract Signed

Power Metal ResourcesAnnouncement

30/08/2022 07:17

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RNS Number : 4735X  Power Metal Resources PLC  30 August 2022

30 August 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Molopo Farms - Drill Contract Signed

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 relation to the Molopo Farms Complex Project ("Molopo
Farms" or the "Project") targeting a large scale nickel-copper-platinum group
element ("PGE") discovery in southwestern Botswana.

On 23 August 2022 the Company announced an update regarding progress being
made towards the first Power Metal managed and operated diamond drilling
programme at Molopo Farms, as well the expansion of the geophysics programme
over target ("T") areas T1-6 and T1-14 (covering prior 20/21 drill holes K1-6
and K1-14) and two new target areas T1-3 and T2-3. The link to this
announcement is below:

https://www.londonstockexchange.com/news-article/POW/molopo-farms-drill-programme-geophysics-update/15596045
(https://www.londonstockexchange.com/news-article/POW/molopo-farms-drill-programme-geophysics-update/15596045)

 

Key Updates:

 

§ Diamond drilling contract has been signed with Mindea Exploration and
Drilling Services (Pty) Ltd ("Mindea"), an experienced Botswana-based company
with extensive drilling experience in-country. Mindea is 100% Botswana citizen
owned.

 

§ The current planned programme is for circa 2,600m of diamond drilling
across an expected 6 drillholes, with at least two drillholes planned into the
newly identified conductor within the T1-6 target area.

 

§ The drilling will be paid for on a part-cash, part-equity basis, with over
50% of the expected contract cost to be satisfied through the issue of up to
10,000,000 new ordinary shares of 0.1p each in the Company at an issue price
of 2.25p per share ("Drilling Cost Shares").  The Drilling Cost Shares will
be issued by the Company within one month of the completion of 2,600 metres of
drilling.

 

§ Mindea's base of operations is located only 98km from Molopo Farms allowing
for quick and efficient mobilisation of crews and equipment, with the expected
mobilisation and drilling commencement scheduled for mid-September 2022.

 

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

"It has been an incredible effort by the team to put us in the position to
launch expedited drilling at Molopo Farms only a matter of weeks after the
discovery, through geophysical surveys, of a new and very compelling conductor
in target T1-6 located immediately south of previous drillhole K1-6.

The electromagnetic conductor, the edge of which was intersected by previous
diamond drillhole K1-6 at a similar stratigraphic level to a broad nickel
sulphide mineralisation interval, represents a high-priority target during the
upcoming drilling programme.

The potential offered by this drill programme is amply demonstrated by Mindea,
the drill contractor, taking a significant portion of the contract costs in
Power Metal shares.

Now the real work begins, with the few weeks prior to drilling commencement to
be used to undertake the expanded geophysical surveys to confirm precision
drill targeting at T1-6, and the follow up surveys at targets T1-14, T1-3 and
T2-3.  That survey work is underway currently.

Further Molopo drilling updates are expected prior to and following
mobilisation, alongside updates in respect of the expanded geophysics drill
target generation programme."

PROJECT BACKGROUND AND OWNERSHIP

 

Power Metal currently has a current circa 53% effective economic interest in
Molopo, held through a direct project interest and a shareholding in partner
Kalahari Key Mineral Exploration (Pty) Ltd ("KKME").  On 18 May 2022 Power
Metal announced a conditional transaction that would see its interest in
Molopo Farms increasing to 87.71% (the "Transaction").  The announcement 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)

 

As part of the Transaction, Power Metal will become the Project operator and
in advance of completion the Company is working with the team at KKME to
maintain momentum with regard to Project exploration.

 

Work streams are also in process to secure Botswana regulatory approvals
enabling the Transaction to complete.

 

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 internal exploration programmes completed or underway, with
results awaited, as outlined in the table below.

 

 Project                Location  Current          Work Completed or Underway                                                    Results Awaited

                                  POW %

 Athabasca Uranium      Canada    100%             Ground exploration programme underway at 3 properties.  Continuing data       Results from ground exploration including spectrometer analysis, sampling and
                                                   analysis across the property portfolio.                                       mapping.
 Authier North Lithium  Canada    Earn-in to 100%  Property Evaluation Report completed.                                         Update covering exploration plans for target areas identified during the
                                                                                                                                 Evaluation.
 Molopo Farms           Botswana  53%(#)           Final preparations for the launch of K1-6 conductor target drilling and MLEM  Commencement of T1-6 drill programme, and findings therefrom and results from
                                                   surveys over T1-6, T1-14, T1-3 and T2-3 targets.                              MLEM surveys.
 Tati Project           Botswana  100%             RC drilling underway and previously sampling of mine dumps complete.          Review of mine dumps sampling, and processing potential.  Results from RC
                                                                                                                                 drill programme.

(#) subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%

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 28.19%                                                     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)

                                  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/) .

 

 

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