REG - Power Metal Res. - Strategic investment in Chilean copper developer

Power Metal ResourcesAnnouncement

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RNS Number : 3883X  Power Metal Resources PLC  20 March 2026

20 March 2026

Power Metal Resources PLC

("Power Metal" or the "Company")

Strategic investment in Chilean copper developer

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London-listed mineral
exploration company and project incubator with a global project portfolio, is
pleased to announce a strategic investment of US$1 million for 2.6% in Next
Minerals S.A. ("Next Minerals"), a Chile-based mining company focused on the
development of medium scale copper operations.

Highlights:

·    US$1 million investment via a subscription agreement into Next
Minerals for 2.6% interest

·    Exposure to the mine-ready Comahue underground copper mine in the
coastal copper belt in Antofagasta, Chile

o  Detailed engineering completed with the necessary permits acquired

o  Phase 1 Mineral Resource Estimate: 9.91 million tonnes ("Mt") at 0.81%
copper 1  (#_ftn1)

o  7 year Life of Mine ("LOM") for phase 1, processing 4.7 Mt to produce
40,000 tonnes of fine copper cathode

o  LOM revenue phase 1: US$495 million

o LOM EBITDA phase 1: US$140 million

o  Next Minerals' additional mining properties include five brownfield
targets totaling 3,000 ha and 10,000 ha of adjacent, unexplored mining
licences, with major world‑class deposits flanking the tenure - providing
potential to materially expand the Company's resource base.

·    Power Metal is undertaking this investment alongside Swift Mining
Services Ltd. ("Swift").

Sean Wade, CEO of Power Metal Resources, commented:

"This strategic investment in Next Minerals represents an important step in
building further, meaningful exposure to copper within our portfolio, on a
large scale in a premium copper jurisdiction.  Chile is the largest and most
renowned copper producer globally and Chilean copper is important across the
globe. This investment represents Power Metal's strategic entry into a
well‑established and prestigious market, strengthening the company's
position through exposure to highly prospective assets in world‑class
jurisdictions.

"The Comahue mine offers Power Metal shareholders access to a project that can
advance to production on an accelerated timescale with all key permits and
approvals granted, as well as a large exploration footprint, and in a time
where we are seeing an attractive copper market. It is also encouraging to
enter this investment with Swift, who equally see the significant potential in
the company and the project. I look forward to updating shareholders further
on this investment as and when appropriate."

Further information

The investment

Power Metal will enter a subscription agreement for the issue of 65,142
ordinary shares and 65,142 warrants in Next Minerals to the value of US$1
million. The warrants will have a three-year life from issue and will be
issued on a 1:1 basis.

The Company's investment will be made alongside an investment from Swift for a
combined sum of US$3 million and total interest of 7.9%. The funds will
support the progression of Next Minerals' business plan, including the
development of the Comahue underground copper mine, as well as to address
other strategic or growth opportunities that may arise.

Next Minerals

Next Minerals is a Mining Company based in Chile focused on the development of
medium scale copper operations. The leadership team has extensive experience
in the mining industry, as well as in management consulting and corporate
finance.

The Comahue copper mine

Next Minerals controls over 14,000 hectares, including the Comahue copper
mine, in the tier-one copper district of the coastal copper belt of
Antofagasta in Chile. Located in a world class mining district, the region
offers access to pre-existing and key infrastructure,  reducing CapEx
requirements. It is situated close to a number of major projects, such as the
Mantos Blancos mine and Marimaca copper project.

Comahue is a mine-ready underground copper project with a phase 1 mineral
resource estimate of 9.91 Mt at 0.81% copper, with 70% of the total resources
recorded within the Measured and Indicated category in accordance with
Canadian National Instrument 43-101. Detailed engineering has been completed
and all necessary permits, including environmental approvals granted. Based on
current reserves plus expected additions from its other mining properties,
Next Minerals could extend project life beyond 15 years and recover
approximately 100,000 tonnes of fine copper cathode, with a metallurgical
recovery of ~87-90%. The Company will employ a sub-level stoping mining method
and process via conventional crushing, heap leaching and SX‑EW, targeting an
initial Phase 1 production capacity of 6,000 tpa of copper cathode, with
potential to increase to about 12,000 tpa as additional resources are brought
online.

Economics of the Comahue mine include LOM revenue for phase 1 of US$425
million, LOM EBITDA of US$158 million, representing 37% of net revenue, and
cash costs of US$3.45/lb.

In addition, the mining property hosts five brownfield exploration targets and
10,000 ha of adjacent, unexplored mining licences, with major world‑class
deposits flanking the tenure - providing potential to materially expand the
Company's resource base.

About Swift Mining Solutions

Alongside Power Metal's investment, Swift will also be investing as part of
the subscription agreement. Swift operates a similar incubator model as Power
Metal, focusing on undervalued copper and gold assets in emerging markets.

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)

 Rachael Brooks/Alastair Roberts                                                 +44 (0) 20 7138 3204

 

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.

 1  (#_ftnref1) The Mineral Resource Estimate for the Phase 1 project was
prepared in accordance with Canadian National Instrument 43-101

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