REG - Power Metal Res. - Business Update

Power Metal ResourcesAnnouncement

25/10/2023 07:00

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RNS Number : 1574R  Power Metal Resources PLC  25 October 2023

25 October 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Business Update

Power Metal Resources PLC (AIM:POW), the AIM listed metals exploration and
development company, provides a Business Update for shareholders following
completion of the Company's financial year on 30 September 2023.

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

"I am pleased to provide this update for shareholders summarising the status
of Power Metal's extensive business interests and our key business objectives
for the near term.

The team are working intensively and concurrently on significant exploration
and corporate initiatives, details of which are outlined below.

We expect various news updates in the near term, informing shareholders of the
outcomes of current exploration programmes, the launch of new exploration
activities and the results of our corporate activities seeking value
crystallisation and streamlining of the Company.

I am well aware that our long-term shareholders have been extremely patient in
what are close to unprecedented market conditions. I am very confident that
the actions we are taking, coupled with the positive macro backdrop for
commodity prices, will translate into significant returns for shareholders
over time."

KEY BUSINESS OBJECTIVES

Power Metal's key business objectives in the short term are as follows:

-      Complete transactions with third parties looking to acquire
business interests, enter into project joint ventures, or otherwise engage in
our various ongoing activities;

 

-      Focus on major metal discoveries from our retained in-house
portfolio through cost-effective exploration including drilling, utilising our
strong financial position and cash generated from future project disposals;

 

-      Expand the ownership of Power Metal shares into new investor
groups, a process that started with the May 2023 £2.7m financing
corner-stoned by Term Oil Inc, a Company controlled by internationally
recognised resources specialist Rick Rule;

 

-      Identify new territories for future business opportunities and
incoming project level investment, including notably Saudi Arabia and Oman,
where we recently conducted in-country meetings and site visits;

 

-      Focus on demonstrable value growth in the Power Metal portfolio
through exploration and value crystallisation, to materially increase the
Company's market valuation.

 

KEY OPERATIONAL ACTIVITIES

 

Note: the information below covers the certain areas of internal operational
activities within Power Metal, where the Company is targeting near term value
generative outcomes.  It does not cover all the activities within the Company
or the Company's investment holdings, where we also note extensive operational
activity continues.

 

 

EXPLORATION ACTIVITIES

 

Key Exploration Activities Table:

 

 PROJECT               LOCATION   NEXT STEPS

 Athabasca Uranium     Canada     Completion of ongoing 2023 exploration programme and publication of findings
                                  targeting significant uranium discoveries.
 North Wind Project    Canada     Receipt of assay results from 2023 field exploration targeting a significant
                                  lithium discovery.
 Molopo Farms Complex  Botswana   Drilling of major conductor targeting nickel/platinum group element discovery.
 Tati Gold Project     Botswana   Completion of ongoing 2023 exploration programme and publication of findings.
 Wallal Project        Australia  Drilling of major magnetic bullseye target in Paterson Region with geophysical
                                  signature similar to Greatland Gold's Havieron Project.

 

 

 

ATHABASCA URANIUM EXPLORATION

Power Metal currently has a 100% interest in 17 uranium properties covering
over 1000km(2) in the Athabasca Region of Saskatchewan, Canada.  This is the
largest ground footprint in the Athabasca Region held by a UK listed
company.

Power Metal's technical team selected the Athabasca footprint by painstaking
review of historical exploration data from work conducted and paid for by
others, applying modern geological knowledge and techniques to identify the
best available ground.  The ground was available because other explorers had
relinquished their interests during the long-term uranium bear market or
because the geological opportunities the Company identified had, at that
stage, been noted by others.

2023 has seen the largest Athabasca uranium exploration programme ever
undertaken by the Company with some very significant early findings announced
recently.

Once completed our 2023 exploration programme will cover approximately 10
properties and to date we have announced major exploration results from across
the portfolio, with further updates expected in the near term as our field
teams remain active and a range of exploration results are awaited.

AFRICA EXPLORATION

Tati Project (POW 100%)

Exploration work at Tati has continued to validate the gold mineralisation
within the previously identified 8km long gold trend.  This work continues
with further infill sampling focused on newly discovered target areas of gold
mineralisation within the trend which pending analysis of final results, may
be followed by reverse circulation and/or diamond drilling which will be
targeted towards the highest profile areas.

In the Company's view there is considerable evidence building for a
potentially significant, economic gold deposit at Tati. Moreover, that there
is potential for rapid project development with a recommencement of historic
mining activities, subject to applicable local regulatory approvals.  This is
made more feasible if the Company can rapidly demonstrate the extent of gold
mineralisation within the project boundaries.  The latter is Power Metal's
present focus.

Molopo Farms Complex Project (POW 87.71%)

Extensive exploration to date has confirmed the feeder zone geological model,
confirmed the presence of nickel sulphides and platinum group elements
("PGEs") through drilling as announced on 27 April 2023 which includes 2.3m @
0.56g/t Pt+Pd+Au & 0.17% Ni from DDH1-6B, and by aggregating and analysing
the extensive database of historical work has now identified the highest
profile conductor drill target to date.

Power Metal sees the potential for a district-scale nickel and PGE discovery
at Molopo and is planning the next diamond drill programme with this objective
in focus.

NORTH AMERICA EXPLORATION

 

North Wind (POW 100%)

 

North Wind is held by ION Battery Resources Limited a 100% owned POW
subsidiary.  A lithium focused ground exploration programme conducted earlier
this summer led to the identification of several pegmatites.

 

The results from assay testing of outcrop rock samples from the identified
pegmatites, together with those from extensive soil geochemical sampling at
North Wind, are expected in the near term.

 

CORPORATE DEVELOPMENT ACTIVITIES

 

The Power Metal model is to advance robust internal exploration programmes to
seek major metal discoveries and build underlying project value, whilst also
looking in parallel for significant value crystallisation through corporate
activity to build the value of the Company.

In some cases, exploration programmes continue across certain projects where
there has been incoming third-party interest.  Power Metal's policy is to
continue planned exploration notwithstanding discussions that may be occurring
in parallel.

Athabasca Uranium Corporate Activity

Given the resurgence in the uranium sector, Power Metal has seen a
considerable increase in the level of interest in our strategic Athabasca
holdings.

Power Metal has previously announced the disposal of Reitenbach and E-12
properties into Uranium Energy Exploration ("UEE"). Plans for an IPO of UEE
have are advancing and a further market update is expected shortly.

The Company has also received third party interest across our uranium
portfolio and further commercial transactions are anticipated however
shareholders should note that there can be no certainty of any such
transactions being concluded.

Africa Corporate Activity

Both Tati and Molopo Farms Complex projects have received third party interest
and the Company continues in discussions to explore complementary, joint
venture and other project level partnerships.

Power Metal continues to liaise with our partner to seek a new pathway for
advancement of the Haneti Project in Tanzania where the Company holds a 35%
interest.

North America Corporate Activity

Power Metal's 100% owned ION Battery Resources Limited ("ION") holds the North
Wind project where lithium focused exploration is currently underway, together
with the Authier North lithium project and Doerksen Bay graphite project.

The next corporate steps for ION are to be determined following receipt of
assay results from the North Wind summer exploration programme and a further
announcement will be made in due course.

The Company's 30% interest in the Silver Peak project remains as previously
stated and we are working with our partners on the next commercial steps for
this important asset.

Australia Corporate Activity

 

New Ballarat Gold PLC (49.9% POW) has secured an enviable ground footprint in
the Victoria Goldfields of Australia, including two high grade former working
gold mines. Power Metal is working with its joint venture partner to create a
pathway to expedite the commercial success of this strategic Australian
opportunity and hopes to announce an update with progress in the near future.

 

First Development Resources PLC ("FDR")(58.59% POW) holds strategic
exploration projects in Western Australia and the Northern Territory and has
been fully prepared for an IPO listing which subject to a return to normalised
market conditions and final regulatory approvals can be undertaken at short
notice.  In Western Australia FDR holds the Wallal Project which includes the
company's primary target - the Eastern Anomaly, a magnetic bullseye target
with a geophysical signature similar to Greatland Gold's Havieron discovery in
the Paterson Region.

 

FDR has secured a c. £110,000 Co-funding grant from the Western Australian
government as part of the Exploration Incentive Scheme to be set against the
costs of Wallal drilling and has received all the necessary local approvals
for the drill to be undertaken.  FDR has also agreed a contract with DDH1
Drilling Ltd to undertake the Phase I diamond drilling drill programme and has
prepared the access and the drill pad location in readiness for drilling.
Recognising this progress the early commencement of drilling is being
considered alongside the work being undertaken to finalise the IPO listing.

 

Finally, Power Metal holds a 20% interest in New Horizon Metals Pty Ltd, which
holds projects in Queensland and South Australia, and is working towards the
completion of a listing in the Australian capital markets.

 

 

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
 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.

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