REG - Power Metal Res. - Acquisition of Authier North Lithium Project

Power Metal ResourcesAnnouncement

12/07/2023 10:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230712:nRSL7970Fa&default-theme=true

RNS Number : 7970F  Power Metal Resources PLC  12 July 2023

12 July 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Acquisition of Authier North Lithium Project

Issue of Equity for Acquisition and Professional Advisory Fees

 

Power Metal Resources PLC (LON:POW), the AIM listed metals exploration and
development company, announces the Company has negotiated early completion of
the Authier North Lithium Project Earn-In to a 100% interest (the "Earn-In").
 The Company also announces a further issue of equity in lieu of professional
fees.

EARLY COMPLETION OF AUTHIER NORTH EARN-IN

The Earn-in was originally outlined in the Company's announcement dated 16
July 2021 which may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/agreement-canadian-lithium-properties/15061434
(https://www.londonstockexchange.com/news-article/POW/agreement-canadian-lithium-properties/15061434)

The Earn-in Agreement concerns two properties, Authier North and Duval East
(the "Properties").  The Properties are situated in the prolific Val'd'Or
mining camp approximately 45km northwest of the city of Val-d'Or and
approximately 500km northwest of Montreal, Quebec.

Power Metal has to date satisfied cash and POW equity payments on signing of
the original agreement and the following year's payments together with the
year 1 exploration spend commitment. The Company has now agreed with Eagle
Ridge Mining Limited based out of Barrie, Ontario, Canada (the "Vendor"), that
all further commitments to secure the 100% Earn-In will be satisfied in full
with the following balancing cash and equity payments as outlined in the
original Earn-in:

-      CAD$25,000 in cash to the Vendor

-      The issue of CAD$75,000 of shares to the Vendor (GBP£43,941). At
the previously agreed Power Metal ten-day volume weighted average price of
0.705835p (immediately prior to Earn-In completion) this equates to the issue
of 6,225,392 new Power Metal ordinary shares of 0.1p (the "Earn-In Shares)."

-      The year 2 and 3 exploration commitments totalling CAD$50,000 and
CAD$100,000 have been waived.

There is an existing 1.00% net smelter royalty ("NSR") over the Properties
that will remain in place. In addition, as per terms of the original Earn-In
Agreement  Power Metal will grant to the Vendors a further 1.25% NSR (the
"Vendor NSR") and 0.5% of the Vendor NSR may be bought back by Power Metal
Canada at any time for a cash payment of CAD$500,000.  In total therefore
prior to any buyback, the total NSRs amount to 2.25% over the Properties.

Upon completion of administration in relation to the Earn-In, the ownership of
the Properties will be held through Power Metal's wholly owned UK subsidiary,
ION Battery Resources Limited and its local operating subsidiary in Canada.

ISSUE OF EQUITY FOR PROFESSIONAL FEES

Power Metal is also to settle professional fees totalling £65,000 through the
issue of 9,208,951 new ordinary shares of 0.1p at an issue price of 0.705835p
(the "Fee Shares"). 3,541,904 Fee Shares have been issued to SP Angel
Corporate Finance LLP, the Company's nominated adviser and joint broker, in
lieu of fees for value of £25,000. The remaining 5,667,047 Fee Shares have
been issued to another corporate adviser in lieu of fees for value of
£40,000.

The services provided and settled by the Fee Shares are not specifically
related to the Earn-In.

Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented:

"I am delighted to secure a 100% interest in the Authier North Project for
Power Metal through this transaction which sees an expedited completion of the
Earn-in. Given the importance of lithium in the future growth and development
of green technology globally, it is important to retain exposure to this
metal.

With the Earn-in of Authier North now complete pending payment of
consideration, we are also able to move forward with commercial plans for ION
Battery Resources Ltd which will now hold this 100% interest and further on
that to follow in due course."

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 6,225,392 Acquisition Shares and 9,208,951
Fee Shares to be admitted to trading on AIM which is expected to occur on or
around 18 July 2023 ("Admission"). The Acquisition and Fee Shares will rank
pari passu in all respects with the ordinary shares of the Company currently
traded on AIM.

Following Admission, the Company's issued share capital will
comprise 2,080,106,256 ordinary shares of 0.1p each. This number will
represent the total voting rights in the Company and may be used by
shareholders as the denominator for the calculation by which they can
determine if they are required to notify their interest in, or a change to
their interest in, the Company under the Financial Conduct Authority's
Disclosure and Transparency Rules.

 

For further information please visit https://www.powermetalresources.com/
(https://www.powermetalresources.com/) or contact:

 Power Metal Resources plc
 Sean Wade (Chief Executive Officer)                                             +44 (0) 20 3778 1396

 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

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

 

 BlytheRay (PR Advisors)                             +44 (0) 20 7138 3204
 Tim Blythe
 Megan Ray

 

 

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.

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 grow the
Company, or may be returned to shareholders through share buy backs, dividends
or in-specie distributions of assets.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  IOERTMPTMTABMBJ