REG - Power Metal Res. - Proposed Capital Reduction

Power Metal ResourcesAnnouncement

19/09/2025 07:00

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RNS Number : 9472Z  Power Metal Resources PLC  19 September 2025

19 September 2025

Power Metal Resources plc

("POW", "Power Metal" or the "Company")

Proposed Capital Reduction

Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed natural
resources exploration company and project incubator with a global project
portfolio, announces a proposed normal course reduction of capital
(the "Capital Reduction"), to ensure there are sufficient distributable
reserves to facilitate a return of capital to shareholders.

The Company recognises the importance of providing returns for the Company's
investors and considers it highly desirable that the Company has the maximum
flexibility to return value to Shareholders via a distribution of reserves.

The capacity of a UK company to make distributions is restricted by the
sufficiency of distributable reserves. Under the Companies Act, a company may,
with the sanction of a special resolution passed by its Shareholders and
confirmation of the High Court of Justice in London ("the Court"), reduce or
cancel its share capital, share premium account, capital redemption reserve
and other reserves. It may then apply the sums resulting from such reduction
to its distributable reserves. These sums may then be treated as distributable
for the purposes of making future returns to Shareholders.

The Company will, accordingly, be seeking Shareholder approval to cancel the
entire amount standing to the credit of its Share Premium account as at the
date when the relevant Court order is made. Subject to confirmation by the
Court and the reduction of capital taking effect, the amount so cancelled will
be credited to the Company's distributable reserves. This will improve the
Company's distributable reserves position and will provide the Company with
flexibility to support, amongst other things, Ordinary Share buy-backs and the
payment of dividends or other distributions to Shareholders in the future.

The Company will, in due course, update Shareholders on the timing of a Notice
of General Meeting to approve the Capital Reduction and the subsequent
application to the Court.

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)
 Tim Blythe/Alastair Roberts                               +44 (0) 20 7138 3204

powermetalresources@blytheray.com

 

NOTES TO EDITORS

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, Oman 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.

**Ends**

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