REG - Power Metal Res. - Strategic Financing Raising £1.3 million

Power Metal ResourcesAnnouncement

01/02/2024 07:15

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RNS Number : 6136B  Power Metal Resources PLC  01 February 2024

1 February 2024

 

Power Metal Resources PLC

("Power Metal" or the "Company")

Strategic Financing Raising £1.3 million

Funding Cornerstoned by Strategic Investors

Power Metal Resources PLC (AIM:POW), the London listed exploration company
with a global project portfolio, announces a financing raising £1.3million
("Financing").

HIGHLIGHTS:

§   Power Metal has raised £1.3m in a strategic financing through the
issue of 130,000,000 new ordinary shares of 0.1 pence each ("Ordinary Shares")
at an issue price of 1.0 pence per Ordinary Share, representing a premium of
approximately 3.09 per cent. to the closing mid-market price of 0.97 pence per
Ordinary Share on 31 January 2024, being the latest practicable date prior to
the publication of this announcement. There are no warrants to be issued in
conjunction with the Financing.

§   The Financing was cornerstoned by UK-based high net worth investors and
a strategic Saudi Arabian investor.

§   The Financing demonstrates the ability of the Company to secure direct
funding from strategic investors, helping to move the shareholder register to
include a greater proportion of longer term and institutional holders.

§   The Financing will be applied to the acceleration of high impact
exploration initiatives and corporate activities across the Power Metal group.

 

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

 

"Power Metal is highly active in its exploration and corporate activities and
we expect to announce further important news from across our varied business
interests in the near term.

 

Corporately, we have been seeking to augment our shareholder register with
strategic high net worth and institutional investors, to further strengthen
the ownership of the Company and achieve a greater proportion of the Company's
shares in the hands of long term investors.

 

This process, started in May 2023 with the involvement of Rick Rule's
investing vehicle, continues with this announcement today, with the Financing
cornerstoned by UK-based high net worth investors and, for the first time, a
strategic Saudi Arabian investor.

 

Importantly, we are also demonstrating the Company's ability to secure funds
from new sources, giving our shareholders confidence in the ability of the
Company to robustly finance its ambitious plans."

 

 

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 130,000,000 Ordinary Shares to be admitted to
trading on AIM which is expected to occur on or around 7 February 2024
("Admission"). The Financing Shares will rank pari passu in all respects with
the existing Ordinary Shares currently traded on AIM.

Following Admission, the Company's issued share capital will
comprise 2,213,468,324 ordinary shares of 0.1 pence each. This number will
represent the total voting rights in the Company and may be used by
shareholders as the denominator for the calculation by which they can
determine if they are required to notify their interest in, or a change to
their interest in, the Company under the Financial Conduct Authority's
Disclosure and Transparency Rules.

 

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/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)

 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 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 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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