REG - Power Metal Res. - Disposal of Kavango Resources Shares for Cash

Power Metal ResourcesAnnouncement

06/11/2023 07:00

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RNS Number : 4134S  Power Metal Resources PLC  06 November 2023

6 November 2023

 

Power Metal Resources PLC

("Power Metal" or the "Company")

Disposal of Kavango Resources Shares for Cash

 

Power Metal Resources PLC (AIM:POW), the AIM listed metals exploration and
development company announces the disposal of its entire holding of 69,500,000
shares of Kavango Resources plc ("Kavango") at a price of 0.8p per share
raising cash of £556,000 for the Company.

Power Metal retains 60,000,000 warrants to subscribe for new Kavango shares
with 30,000,000 warrants at an exercise price of 4.25p and 30,000,000 warrants
at an exercise price of 5.5p, both with an expiry date of 8 January 2025.

In addition, Power Metal holds a 1% net smelter return royalty ("NSR") in
respect of the project licence footprint in the Kalahari Copper Belt and Ditau
Camp projects previously held in joint venture with Kavango.

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

"I am pleased to announce this disposal bringing an additional £556,000 cash
into the Company which will be deployed into the Company's high impact
exploration initiatives.

"Whilst we would describe our holding in Kavango as non-core our disposal does
not reflect any negative view of their business or their ambitions and we wish
them well in their endeavours.

"Our priority however is deploying financial resources into Power Metal core
projects whilst also streamlining the diverse interests of the Company and
demonstrating our ability to raise cash for operations through means other
than equity financings which dilute investor holdings.

"The funds raised will add to our significant existing cash balances and will
be utilised for accelerated exploration, including drilling of certain high
impact retained exploration projects targeting large-scale metal
discoveries.  Further information to follow in respect of specific
exploration programmes."

 

 

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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