REG - Power Metal - Reitenbach Uranium Disposal – Progress Update

Power Metal ResourcesAnnouncement

08/09/2022 08:45

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RNS Number : 7526Y  Power Metal Resources PLC  08 September 2022

8 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Reitenbach Uranium Disposal - Progress Update

 

Power Metal Resources PLC (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces a progress update in respect of the conditional disposal of its
Reintenbach uranium property ("Reintenbach" of the "Property") located east of
the Athabasca Basin in Northern Saskatchewan, Canada.

The conditional disposal of Reitenbach to Teathers Financial Plc ("Teathers
Financial" or "Teathers"), was announced on 8 August 2022 and may be viewed
through the following link:

https://www.londonstockexchange.com/news-article/POW/disposal-of-reitenbach-uranium-property-canada/15575269
(https://www.londonstockexchange.com/news-article/POW/disposal-of-reitenbach-uranium-property-canada/15575269)

Teathers is an unlisted public company which is planning an initial public
offering ("IPO") on the London capital markets.   Subject to the conditional
terms of the agreed  Property Purchase Agreement  (the "Agreement") being
met, the Power Metal group would be expected to hold an estimated 40-55%
interest in the newly listed company.

HIGHLIGHTS

§ Teathers to be renamed Uranium Energy Exploration PLC for its planned
listing on the London capital markets.

 

§ Preparations for planned listing progressing well and £125k pre-IPO
fundraising round completed.

 

§ Multiple significant uranium prospective anomalies identified across the
Property.

 

§ A significant 'New Lake Geochem Zone' has been identified which is
demonstrated by high-

tenor uranium results from historical lake sediment geochemical sampling

 

§ Additional staking of 1,333 hectares (13.33Km(2)) completed to cover new
prospective zone and increasing the size of the Property to 15,979 hectares
(159.79km(2)).

 

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

"The planned disposal of the Reitenbach uranium Property into what will be
Uranium Energy Exploration PLC is progressing well, with significant corporate
and technical progress having been made in the last 4 weeks since the
transaction was announced.

We are seeing uranium shares move sharply higher across UK, Canadian and
Australian exchanges, reflecting the increasing recognition across the globe
of an urgent need for the uptake in utilisation of nuclear power generation.

Regrettably the UK capital markets do not have many uranium focused shares,
and there is limited opportunity for UK investors to participate in the
uranium sector. This new planned listing will add another opportunity, and we
understand the investor engagement thus far, has demonstrated there is a great
deal of interest.

Should you wish to be kept informed of developments, please email
info@uraniumenergyexploration.com."

 

FURTHER INFORMATION

Corporate:

-      Teathers Financial recently completed a £125,000 pre-IPO
financing.

 

-      Teathers has secured the company name, Uranium Energy Exploration
and ticker symbol UEE, in advance of its planned listing on the London capital
markets in the near term.

 

-      Teathers has also secured the website holding page
(https://uraniumenergyexploration.com (https://uraniumenergyexploration.com/)
) as well as the Twitter handle @uranium_energy as it continues to build out
its online presence.

 

Reitenbach Technical:

Prior to the acquisition of the Property becoming unconditional, Power Metal's
technical team have continued to undertake exploration work on the Property.
The outcome of that work is outlined below.

-      Hyperspectral remote sensing analysis utilising Sentinel-2
satellite data on hydrogen and helium gas reflectance was recently obtained
over the Reitenbach area. The results of this spectral survey highlighted the
existence of several anomalies located across the Property.

 

-      These spectral results, combined with government and historical
geophysical data, have allowed for the refinement of several high-priority
targets for inspection during future work programmes, which includes a strong
northeast-southwest trending anomaly in close proximity to the original 'Lake
Geochem Zone' identified in 2021 by Power Metal.

 

-      A significant 'New Lake Geochem Zone' was also identified through
further historical data digitisation, which includes lake sediment sample
results up to 346ppm Uranium ("U") (with 6 results returning > 285ppm U)
which represent very high tenor results for this type of geochemical sample.
The combined Lake Geochem Zone now stretches for greater than 7km.

 

-      The spectral results also have highlighted a significant hydrogen
and helium anomaly present along the regionally important Needle Falls Shear
Zone.

 

-      As a result of the spectral results and the identification of the
'New Lake Geochem Zone', an additional 1,333 hectares have been claim staked
(13.33 km(2)), bringing the total Property area under licence to 159.79 km(2).
The new ground staked covers the extension of a northeast-southwest trending
uranium-rich boulder train as well as spectral anomalies identified at the
'New Lake Geochem Zone'. All Reitenbach Property claims are being held by
Power Metal, in trust for Teathers, pending completion.

A map highlighting the newly staked area and results from the 'New Lake
Geochem Zone' be viewed on the Company's website through the following link:

https://www.powermetalresources.com/reitenbach-property-overview-sept-22/
(https://www.powermetalresources.com/reitenbach-property-overview-sept-22/)
 

 

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and
approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a
qualified geologist and acts as the Competent Person under the AIM Rules -
Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal
consultant working for Mining Analyst Consulting Ltd which has been retained
by Power Metal Resources PLC to provide technical support.

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 and sampling of mine dumps complete.                              Review of mine dumps sampling and 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/) .

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

 

 

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