REG - Power Metal Res. - Golden Metal Resources Plc Update

Power Metal ResourcesAnnouncement

29/06/2023 10:00

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RNS Number : 3795E  Power Metal Resources PLC  29 June 2023

29 June 2023

Power Metal Resources PLC

("Power Metal" or the "Company")

Golden Metal Resources Plc Update

Power Metal Resources PLC (LON:POW) the London listed exploration company with
a global project portfolio, notes the announcement made by Golden Metal
Resources Plc ("Golden Metal"), a company in which Power Metal Resources has a
62.01 per cent shareholding, which is reproduced in full below and can be
found on the Golden Metal website accessible via the following
link: https://www.goldenmetalresources.com/
(https://www.goldenmetalresources.com/)

 

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

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

 

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

 

 

Golden Metal Resources plc

('Golden Metal' or the 'Company')

US Funding Strategy

Golden Metal Resources plc (LON:GMET), a mineral exploration company focused
on tungsten, gold, copper and silver within Nevada, USA, announces the
Company's strategy relating to funding opportunities that are available
through the US Government.  The Company intends to pursue this strategy with
a particular focus on seeking non-dilutive government supported grant funding
for its flagship 100% owned Pilot Mountain Project ("Pilot Mountain" or the
"Project").

Highlights:

-      The Company considers that Pilot Mountain hosts the largest known
undeveloped tungsten resource in the US.

 

-      The US is currently without any domestic primary tungsten
production with their largest import partner for the critical defense metal
being China. Beginning January 2026, the US Department of Defense (DOD) is
banning the use of mined tungsten from China, Russia, North Korea and Iran in
defence procurement.(1)

 

-      Golden Metal recently signed a tungsten concentrate off-take
letter of intent with Global Tungsten & Powders LLC, a leading United
States supplier of tungsten powders and semi-finished parts.

 

-      As a result of the above, the Company believes it is in a strong
position to seek out non-dilutive grant funding. If Golden Metal were to
receive such funds, it would enable exploration and development at Pilot
Mountain to be accelerated.

 

-      Golden Metal is actively working with Mrs. Chang Turkmani, who on
5 June 2023 was officially engaged as Strategic United States Government
Advisor, on how to shape its general strategy as it relates to further
increasing the profile of Golden Metal Resources and Pilot Mountain within the
US and abroad.(2)

 

Next Steps:

-      Golden Metal has commenced the application process for a short
list of relevant grant programmes identified by the Company's management team,
alongside Mrs. Turkmani, from the available Company-eligible funding
opportunities.

 

-      Some grants targeted by the Company are applied for by way of an
unsolicited application process, meaning Golden Metal can neither disclose
which grants have or will be applied for nor the expected timing of an award.

 

-      Securing non-dilutive financial support for Pilot Mountain remains
a priority of the Company, and all endeavours are being made in this respect
to give Golden Metal the best chance of achieving this goal.

 

-      As soon as it is possible to do so, Golden Metal will provide the
market with updates as it relates to progress made towards securing
non-dilutive grant funding, which would allow the Company to fast-track
exploration and development at its flagship Pilot Mountain Project - with the
ultimate goal of establishing Pilot Mountain as the only domestic US primary
mined source of tungsten.

Oliver Friesen, CEO of Golden Metal, commented:

"While at this time we cannot disclose many details about our strategy as it
relates to government funding opportunities, the recent appointment of Mrs.
Turkmani should clearly signify to the market the endeavours we are making on
this front.

"The time for the United States to reduce its reliance on other countries for
their imports of critical and defence metals is now, and we at Golden Metal
strongly believe that as 100% owners of what we consider is the largest
undeveloped tungsten deposit located on US soil, we can be a part of this
urgent process.

"Targeting non-dilutive funding is a critical focus of the Company. However,
minimal updates will be given for the time being, as such disclosure may
interfere with our ongoing endeavours in this regard. However, it is important
for our investors to know that, while this key part of the business ticks away
in the background, we will continue pushing forward exploration and
development across the portfolio at pace."

Notes and References

(1)https://www.jdsupra.com/legalnews/department-of-defense-expands-scope-of-8754647/

(2)https://www.londonstockexchange.com/news-article/GMET/appointment-of-strategic-advisor-issue-of-shares/15985547

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
timing and granting of regulatory and other third party consents and
approvals, uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of unexpected
events.

Actual results achieved may vary from the information provided herein as a
result of numerous known and unknown risks and uncertainties and other
factors.

For further information visit www.goldenmetalresources.com
(http://www.goldenmetalresources.com) or contact the following:

 Golden Metal Resources plc                   Tel: +44 (0) 20 7583 8304

 Oliver Friesen (CEO)
 Cairn Financial Advisers LLP                 Tel: +44 20 7213 0880

 Nominated Adviser

 Sandy Jamieson/Jo Turner/Louise O'Driscoll
 First Equity Limited                         Tel: +44 20 7374 2212

 Broker

 Jonathan Brown/Jason Robertson

 

The Projects:

Pilot Mountain Project

The Pilot Mountain project is an advanced exploration and mineral resource
definition stage project located in Mineral County in western Nevada. The
project covers an area of 14.80 km(2) (3,656.1 acres) and is located 200km
southeast of Reno and 18km east of Mina, Nevada. It is well situated for the
supply of power, water and skilled labour and proximity to transport
infrastructure in Mineral County and is centred around four existing mineral
deposits: Garnet; Good Hope; Gunmetal and Desert Scheelite, all of which
possess significant skarn-style tungsten-copper-silver-zinc mineralisation.
The Pilot Mountain project consists of 176 active lode mining claims and 4
filed mill site claims. The four mill site claims filed at the former Dunham
mill site have secure access to groundwater supply sufficient for the proposed
project.

Golconda Summit Project

Golden Metal is the operator of the Golconda Summit project, which is held
under an earn-in right to acquire up to 100 per cent. of the project from the
mineral claim owner pursuant to an option agreement. The Golconda Summit
project is an exploration stage gold and silver project located in Humboldt
County and situated at the confluence of the Getchell and Battle Mountain -
Eureka metallogenic trends, and consists of 44 lode mining claims, covering a
total area of approximately 3.22 km(2) (795.4 acres) located approximately
27km east of Winnemucca.

Garfield Project

The Garfield project is an early exploration stage copper, gold and silver
property consisting of 39 lode mining claims covering 3.23 km(2) (797.9 acres)
located in Mineral County, Nevada, approximately 14km due east of the town of
Hawthorne and 120km due west-northwest of Tonopah.

Stonewall Project

The Stonewall project is an exploration stage gold-silver property prospective
for epithermal gold-silver mineralisation. The property consists of 19 lode
mining claims covering 1.59 km(2) (392.5 acres) located on the northern flank
of Stonewall Mountain, on the western edge of the Nellis Airforce Range
Restricted Access Area, in Nye County, Nevada, approximately 24km south-east
of the historic gold mining town of Goldfield and 60km due south of Tonopah.

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