REG - Power Metal Res. - Power Arabia Limited (“Power Arabia”) Update

Power Metal ResourcesAnnouncement

12/03/2024 07:00

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RNS Number : 4131G  Power Metal Resources PLC  12 March 2024

12 March 2024

Power Metal Resources PLC

("Power Metal" or the "Company")

Power Arabia Limited ("Power Arabia") Update

Power Metal Resources PLC (AIM:POW), the London listed exploration company
with a global project portfolio, is pleased to update shareholders on the
progress being made through its 100% owned subsidiary company, Power Arabia
Ltd ("Power Arabia").

Highlights:

·    Memorandum of Understanding ("MoU") signed with Ministry of
Investment of the Kingdom of Saudi Arabia ("MISA") at Future Minerals Forum,
as announced on 12 January 2024

·    Power Arabia has been established to encompass all of POW's
activities across the Arabian Gulf (the "region"). This could also include
projects outside the Gulf in joint venture with entities domiciled within the
region

·    Several binding MoUs for potential joint ventures on existing
exploration licences are currently in the final stage of negotiation and,
assuming execution of one or more of these, initial groundwork is expected to
commence in April, after Ramadan and Eid al-Fitr.

·    Power Arabia is currently undergoing a pre-IPO financing round to
fund activities in the region with a view to a listing on the London capital
markets in due course

·    Conversations are progressing with investors, both from the Gulf and
internationally, who have indicated significant interest in a regionally
focused investment vehicle

 

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

"I am very pleased to update shareholders on the progress we are making in
this exciting part of our business. We have now made several trips to the
region and are establishing ourselves as a credible partner for a number of
existing licence holders. We are currently looking at formal arrangements to
acquire suitable exploration opportunities with various separate entities, of
which several are currently close to execution. It is clear that our
successful incubator model has resonated with regional investors and we are
intending to shortly complete a financing round for Power Arabia with a view
to completing transactions in the region and getting started on meaningful
exploration work.

As has been the case with previous portfolio transactions, POW is expected to
retain a significant shareholding in Power Arabia, giving our shareholders
substantial upside potential from discoveries, but without diluting their
shareholding in POW and asking them to fund all of the exploration costs.

Whilst there is never complete certainty of a successful outcome, of either
the pre-IPO financing or the listing of Power Arabia on the London capital
markets, we are very excited to bring this IPO to London and strongly believe
that our model will be successfully replicated across the Arabian Gulf region
and will deliver significant value to shareholders."

 

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/Caroline Rowe/Harry Davies-Ball                                     +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/Caroline Rowe/Harry Davies-Ball

+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 (AIM: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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