REG - Power Metal Res. - Partial Disposal of GMET Holding

Power Metal ResourcesAnnouncement

11/02/2025 07:15

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RNS Number : 5884W  Power Metal Resources PLC  11 February 2025

11 February 2025

Power Metal Resources PLC

("Power Metal" or the "Company")

Partial Disposal of GMET Holding

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London listed
exploration company with a global project portfolio, announces an intended
partial disposal of its stake in Guardian Metal Resources PLC ("GMET").

Power Metal has reached an agreement in principle with UCAM Ltd wherein it is
intended that UCAM Ltd will purchase from Power Metal 29,758,334 shares in
GMET, and warrants granted over 986,352 ordinary shares in GMET of £0.01
each, for a total cash consideration of £9,225,083.91 before costs (the
"Proposed Transaction").

Completion of the Proposed Transaction is subject to UCAM completing a
fundraising transaction, certain administrative processes and a legally
binding Sale and Purchase Agreement (the "SPA") being entered into between
Power Metal and UCAM. It is currently intended that the SPA will be entered
into within 10 business days however there can be no certainty that the SPA
will be entered into within this timeframe, or at all, and that the Proposed
Transaction will complete on the terms set out above.

Should the Proposed Transaction be concluded as envisaged, Power Metal's
resultant holding in GMET will be 25,169,772 shares, representing
approximately 19.2% of GMET's issued share capital.

The proceeds will be used to redeem the £2 million loan note issued to ACAM
LP on 10 June 2024, with accrued interest, and for general corporate purposes.

Tamesis Partners LLP is acting as the Company's Financial Adviser in relation
to the Proposed Transaction.

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

"I am very pleased to be able to announce to shareholders the intended
monetisation of a portion of our holding in GMET, and with it, to introduce to
GMET such a significant strategic investor.

GMET has been a very successful investment for Power Metal and if the Proposed
Transaction is completed, we will have realised a return on this part of our
investment of 966%, or close to 10 times.

This would represent a strong validation of our incubator model and will
hopefully give investors renewed confidence in our ability to generate
significant shareholder returns.

We are committed to our remaining holding in GMET for the foreseeable future
and look forward to seeing it continue to grow as part of our portfolio of
high-quality assets."

 

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 LLP (Nomad and Joint Broker)
 Ewan Leggat/Jen Clarke                                                          +44 (0) 20 3470 0470

 Tamesis Partners LLP (Joint Broker)
 Richard Greenfield/Charlie Bendon                                               +44 (0) 20 3882 2868

 BlytheRay (PR Advisors)                                                         +44 (0) 20 7138 3204

 Tim Blythe/Megan Ray

 

NOTES TO EDITORS

Power Metal Resources plc - Background

Power Metal Resources plc (AIM:POW, OTCQB:POWMF) is a London-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, Saudi Arabia 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.

 

 

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