REG - Power Metal Res. - Successful Completion of Uranium-Focused JV

Power Metal ResourcesAnnouncement

07/10/2024 07:00

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RNS Number : 0779H  Power Metal Resources PLC  07 October 2024

7 October 2024

Power Metal Resources plc

("Power Metal" or the "Company")

Successful Completion of Formation of Uranium-Focused Joint Venture

Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed
exploration company with a global project portfolio, is pleased to confirm
that the formation of a uranium-focused joint venture (the "Joint Venture")
involving Power Metal's entire portfolio of uranium licences, has successfully
been completed with UCAM Ltd ("UCAM" or the "Investor").

 

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

"I am delighted to announce the successful completion of this flagship
transaction for Power Metal. We are extremely excited about working with UCAM
to deliver high-quality uranium discoveries and I am confident that this Joint
Venture will be a huge value driver for our shareholders. It is a strong
affirmation of our business model, and will serve as a beacon for how we can
continue to develop and crystallise value from across our portfolio.

"As we have previously stated, UCAM's investment is expected to provide Power
Metal shareholders with exposure to at least five high impact drilling
programmes, with significant advancement on several more.

"We have also recently acquired the Drake Lake-Silas property, which has now
been vended into the Joint Venture. Drake Lake-Silas was originally intended
to form part of the asset set of Uranium Energy Exploration plc ("UEE") which
is now no longer pursuing an IPO, and was, therefore, part of the portfolio of
licences offered to the Joint Venture at the outset of our discussions.

"As we have already reported, significant work has already commenced during
the current field season, and I look forward to announcing results from this
work as soon as we are able."

Joint Venture

In accordance with the Company's original announcement on 3 June 2024, the
Investor will make an initial equity investment of £10 million cash into
the Company's wholly owned Canadian subsidiary company, 1501158 BC
Ltd (formerly Power Metal Resources Canada Inc), for a majority interest of
70%. The Company will potentially receive an additional cash payment of up
to £4 million, conditional upon a sale transaction completing or other value
realisation by the Investor, subject to the Investor achieving a minimum
return threshold of three times its initial investment.

 

Tamesis Partners LLP acted as the Company's financial adviser, and Memery
Crystal LLP acted as the Company's legal adviser, in relation to the formation
of the Joint Venture.

 

Further Information on Projects

 

The Company is also pleased to provide a further update on the current status
of the following Projects:

 

Perch River

 

Following the staking of Perch River in summer 2023, Power Metal commissioned
a hyperspectral data compilation and processing study. Results from the study
highlighted the presence of several very strong hyperspectral helium
anomalies(2), the source of which is postulated to either be buried uranium
mineralisation, gas leakage from a helium reservoir at depth, or leakage from
a buried hydrocarbon reservoir. As noted at the time, the hyperspectral helium
anomalies were recorded to be in a prospective location for
unconformity-related uranium, with major fault structures, a gravity low and
recorded electromagnetic conductors.

 

A combined helium, radon, and soil survey has been completed in the centre of
Perch River, including within the footprint of the helium hyperspectral
anomaly, and secondary potential emissions of helium along the Font du Lac
river. The helium survey was completed by global expert in helium
geochemistry; Dr David Seneshen of Geochemical Exploration Services Ltd.
Alongside the helium survey, a combined radon and soil sampling campaign was
also successfully completed on Perch River, the results of which will be
released in due course.

 

Tait Hill

 

On Tait Hill, the work aimed to refine the anomalous radon and soil results
highlighted during the 2023 work programme over the Mullis Lake Target, and
investigate a further potential intrusive related uranium target in the
northwest, which has been named the Tait Lake West Target.

 

The Tait Lake West Target is located approx. 7 km to the north of the Mullis
Lake Target, and overlies a radiometric high, at the apex of mapped intrusion.
Previous work(3) identified multiple radioactive boulders, but failed to
locate their source. During the 2024 field season, soil and biogeochemical
samples were collected across these main target areas.

 

Cook Lake

 

In 2023, Power Metal completed a magnetic survey over Cook Lake(4) to aid in
delineating prospective structures for mineralisation to support future
fieldwork. The completed 2024 fieldwork includes radon and soil sampling on a
target located across a prospective fault structure, down ice of which is a
radioactive boulder train composed of similar geology to that mapped in the
vicinity of target(5).

 

Reitenbach

 

In 2023, Power Metal completed an airborne full tensor magnetic gradiometer
(FTMG) and radiometric survey across Reitenbach. This survey identified
multiple radiometric anomalies with prospective structural geology. These
targets are largely underexplored, with no systematic exploration and no
exploration in these areas since the 1970s.

 

During the summer of 2024, combined radon, soil, and biogeochemical sampling
was successfully completed across selected targets on Reitenbach.

 

Thibault Lake

 

In July, a combined magnetic and radiometric airborne survey was completed to
better understand the geology across Thibault Lake. Following the receipt of
preliminary results, the Company successfully completed a combined radon,
soil, and biogeochemical sampling campaign on areas of promising geophysical
and geological characteristics in late August.

 

Clearwater

 

Following the magnetic survey completed over Clearwater in 2023, two main
targets were identified along clearly defined fault structures, which,
although they had historically known radioactivity, had never been formally
tested. Alongside the fieldwork at Thibault Lake, one day of prospecting was
spent on one of the targets.

 

Soaring Bay

 

Fieldwork in 2023(5) confirmed the presence of a significant historical radon
anomaly along an inferred fault structure. The work completed in 2023 also
identified significant radon enrichment to the southwest along the fault
structure. To better understand Soaring Bay's structural geology, a combined
magnetic and radiometric survey was completed in mid-July, which will feed
into future work programmes on Soaring Bay, and will enhance the Power Metal
technical team's understanding of Soaring Bay's geology.

 

E12

 

In 2023, a magnetic survey was completed to provide information on E12's
structural and subsurface geology. In early September 2024, a follow-up field
programme comprising radon and soil sampling targeted two fault structures was
completed on E12.

 

Drake Lake - Silas

 

In early to mid-September, a combined radon, soil, and biogeochemical sampling
programme was completed on two main targets including, 1) a largely untested
but highly prospective geophysical trend, and 2) an untested gravity low.

 

Pending Work

 

Airborne electromagnetic surveys covering Perch River, Badger Lake, Hawkrock
East, and Hawkrock West are currently in advanced planning and are expected to
be commissioned in October. Depending on assay results, weather, and
contractor availability, scope exists for small, targeted field-based surveys
to complement the work completed this season.

 

In 2023, Power Metal commissioned an advanced airborne passive EM survey over
the Durrant Lake and Kernaghan Properties. The results of these surveys are
pending, subject to enhanced QA/QC by the contractor which is currently in
progress.

 

 

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.

 

 

 

REFERENCES

(1)Morgan, J.A. and Giroux, G.H.2008: Form 43-101 Technical Report on The
Central Mineral Belt (CMB) Uranium Project, Labrador, Canada.NI 43-101
Technical report

(1)
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rd1n0pr
(https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rd1n0pr)

(2) CanAlaska Uranium Ltd, 2008, Report on 2008 Exploration Programme - Grease
River Property, Saskatchewan. (74O09-0024)

(4)
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/wv4lmzw

(4) Marline Oil Corporation, 1979, Property CBS 5333 Area 114, (64E11-0030)

(5)
https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/xen6pyx

 

 

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/Caroline Rowe                                                       +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 an AIM-traded 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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