REG - Power Metal Res. - Tati Project Development Update

Power Metal ResourcesAnnouncement

27/01/2026 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260127:nRSa4445Qa&default-theme=true

RNS Number : 4445Q  Power Metal Resources PLC  27 January 2026

27 January 2026

Power Metal Resources PLC

("Power Metal" or the "Company")

Tati Project Development Update

Power Metal Resources PLC (AIM:POW) the London-listed exploration company and
project incubator with a global project portfolio, is pleased to announce a
commercial update from its 100% owned Tati Gold Project ("Tati" or the
"Project") located on the Tati Greenstone Belt ("TGB") near
Francistown, Botswana.

Further to the share option agreement ("Option" or the "Agreement") entered
into with Tuscan Holding PTY LTD ("Tuscan") on 19(th) June 2024, Power Metal
along with Tuscan and its in-country operations team have completed key
preparations for the next phase of work, the details of which are outlined
below.

 

Highlights:

·    The Environmental Management Plan ("EMP") for the Tati Gold Project
has been formally approved by the relevant government authorities, removing a
key permitting milestone required to advance on-site activities including
drilling.

 

·    While negotiations relating to the access agreement covering the
Project area, and Cherished Hope specifically, took longer than initially
anticipated, discussions are now well advanced and nearing finalisation, with
execution expected in short order. This will provide access to the licence
area to support the planned work programme.

 

·    An extremely strong gold price environment continues to materially
support the advancement of the Tati Gold Project and the potential for
small-scale mining at Cherished Hope, reinforcing the economic rationale for
continued investment and evaluation by the Company's option partner, Tuscan.

 

·    With the successful receipt of the EMP, and upon finalisation of the
access agreement, the Company is pleased to report that next project steps can
proceed which include rotary air blast ("RAB") drilling to define the geometry
and continuity of gold mineralisation at Cherished Hope.

 

·    In accordance with the Option, Tuscan will manage and fund the
planned work programme. Site visits are expected to commence in the upcoming
weeks to progress drill site investigations and preparations, with drilling
planned to commence following the end of the current rainy season, anticipated
by March/April.

 

Details

Following approval of the Environmental Management Plan and with the access
agreement close to finalisation, the Project has completed the key preparatory
steps required to move into its next phase of technical work.

Under the terms of the option agreement, Tuscan is progressing a structured
work programme aimed at advancing the Project toward a potential feasibility
study. The initial phase will focus on defining the geometry and continuity of
gold mineralisation through a programme of rotary air blast ("RAB") drilling
to depths of approximately 60 metres for a planned total of ~600m. This
drilling strategy is designed to follow mineralisation down-dip, generate
sufficient geological data to support early mine planning concepts, and
produce representative samples for preliminary metallurgical test work, while
mitigating the effects of supergene enrichment.

In parallel, high-resolution drone imagery will be collected across the
Project area to support environmental baseline studies, the development of
digital terrain models, and the preliminary design of mining infrastructure.

Subject to receiving encouraging results from this phase of work, applications
may be submitted to the relevant authorities to permit small-scale mining
operations of approximately 50 tonnes per day, with the objective of
progressing the Project toward initial gold production thereafter.

 

Deal Details

On 19(th) June 2024 Power Metal entered into a 730-day share option agreement
with Tuscan Holding Pty Ltd in respect of Prospecting Licence PL049/2022 at
the Tati Gold Project, Botswana. During the option period, Tuscan will fully
fund and manage all exploration, evaluation and feasibility activities,
including the preparation of a feasibility study, at no cost to Power Metal.
Subject to completion of the feasibility study and Tuscan financing the
construction and development of a processing plant and associated mine
infrastructure, Tuscan may exercise the option to acquire a 75% interest in
the licence, with Power Metal retaining a 25% interest free carried to
production. Power Metal will retain 100% ownership of all other Tati licences,
and the retained interest in PL049/2022 is intended to provide ongoing
exposure to potential future cash flow and dividend distributions from any
future gold production.

 

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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDFZGZMZVKGVZZ



            Copyright 2019 Regulatory News Service, all rights reserved