REG - Power Metal Res. - The Wilan Project Crystallisation Event

Power Metal ResourcesAnnouncement

28/05/2024 07:00

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RNS Number : 9602P  Power Metal Resources PLC  28 May 2024

28 May 2024

Power Metal Resources PLC

("Power Metal" or the "Company")

The Wilan Project ("Wilan") Crystallisation Event

NHM Holdings (Australia) Pty Ltd ("NHMHA") acquired by Aruma Resources Limited
(ASX: AAJ)

Power Metal Resources PLC (AIM:POW,OTCQB:POWMF), the London-listed exploration
company seeking large-scale metal discoveries across its global project
portfolio announced a Merger Agreement (the "Merger")  on 15 December 2022.
The Merger included Power Metal's Wilan Project and additional licences in Mt
Isa region of Queensland to form NHMHA with Power Metal owning 20% of NHMHA
Issued Share Capital. NHMHA created a Uranium / Copper focused vehicle.

Following successful completion of due diligence, ASX listed Aruma Resources
Limited ("Aruma") (ASX: AAJ) announced a conditional agreement for the
acquisition of 100% of NHMHA on 27 May 2024, providing Power Metal with
exposure to Uranium and Copper exploration potential on the ASX Markets.

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

"I am very pleased to be able to report an important crystallisation event in
respect of the NHMHA acquisition by Aruma Resources. This further demonstrates
the value of our incubator model and how it serves to add value to
shareholders. This transaction represents a continued streamlining of our
portfolio and allows for concentration on our highest-value opportunities".

 

Extract from the ASX Announcement Dated 27 May 2024, Aruma commented:

Aruma has executed a share acquisition agreement to acquire the Wilan
IOCG-Uranium Project in the Olympic Dam precinct in South Australia, and the
Fiery Creek Copper Project and the Bartola Copper Project in the Mt Isa region
of Queensland from NHM Holdings (Australia) Pty Ltd (NMHA).

This is a Pivotal acquisition for Aruma. It will see the Company expand its
focus into key high-demand commodities, copper and uranium, via a portfolio of
high-potential exploration projects in two of Australia's pre-eminent, active
mineral precincts.

Aruma has successfully completed due diligence over the new projects.
Completion of the acquisition of NHMHA remains subject Aruma shareholder
approval, to be sought at a shareholder meeting to be convened in the near
future.

On completion of the acquisition, Aruma plans to commence targeted, systematic
field work programs across the new projects to define priority drill targets,
with the aim of progressively drill testing priority targets to unlock each
project's full value proposition.

As consideration for the acquisition, Aruma proposes to issue the following to
NHMHA shareholders:

·    26.5 million fully paid AAJ ordinary shares, which will be subject to
a voluntary escrow period of 6 months from the date of issue;

·    24.5 million options each non-transferable and exercisable into one
ordinary AAJ share for a nil exercise price upon Aruma securing program for
environment protection and rehabilitation (PEPR) approval for drilling at the
Wilan Project in South Australia, and obtaining any other necessary approvals
to conduct drilling at the Wilan Project; and

·    28 million options each non-transferable and exercisable into one
ordinary AAJ share for a nil exercise price upon AAJ reporting an aggregate
drilling intercept (in one drill-hole) of 3m at >600ppm U308, or at least
20m at >0.8% Cu or metals equivalent at one of the new projects.

AAJ will also pay a 2% net smelter royalty to NHMHA shareholders over any
minerals extracted and sold from the tenements.

ASX Announcement Link:
https://announcements.asx.com.au/asxpdf/20240527/pdf/063ys0wnfvr63w.pdf

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                                                       +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

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Caroline Rowe

+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)                            +44 (0) 20 7138 3204
 Tim Blythe
 Megan Ray

 

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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