REG - Power Metal Res. - Update on Formation of Uranium-Focused JV

Power Metal ResourcesAnnouncement

30/09/2024 07:00

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RNS Number : 1236G  Power Metal Resources PLC  30 September 2024

30 September 2024

Power Metal Resources plc

("Power Metal" or the "Company")

Update on Formation of Uranium-Focused Joint Venture

Acquisition of Drake Lake-Silas Uranium Project, Newfoundland & Labrador

Update on 2024 Fieldwork Programme

Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed
exploration company with a global project portfolio, is pleased to provide an
update on the formation of a uranium-focused joint venture (the "Joint
Venture") involving Power Metal's entire portfolio of uranium licences, with
UCAM Ltd ("UCAM or the "Investor", together the "Parties").

 

The Company has been informed by the Investor that it is in the process of
completing certain administrative tasks relating to the finalisation of the
Joint Venture transaction, and expects to be in a position to enter into
definitive documentation shortly. Given the advanced state of the transaction,
the Company does not feel it is necessary to formally extend the period of
exclusivity for the transaction, and currently expects to be able to inform
shareholders imminently that the transaction has completed.

The Company also announces, that subject to the approval of its Nominated
Adviser, it intends to extend the date of the Company's financial year end.

Separately, the Company is pleased to announce that it has acquired the Drake
Lake-Silas uranium project ("Drake Lake-Silas" or the "Property"), within a
prolific uranium district in Newfoundland and Labrador. The Property will be
vended into the Joint Venture on completion of the transaction. A substantial
fieldwork programme has already been undertaken in the current field season
with further work planned for the current year.

 

Drake Lake-Silas is composed of two non-contiguous licences covering
1,250-hectares (12.5 kilometres squared ("km(2)")) and 500-hectares (5.0km(2))
respectively. The mapped geology is contiguous with a resource of 5 million
pounds ("lbs") U(3)O(8) indicated and 5.82 million lbs U(3)O-(8) inferred(1),
and a vanadium resource of 15.81 million lbs inferred of V(2)O(5), at 0.088%
V(2)O(5) within 1 kilometre ("km") of the Property's boundaries.

The Property hosts two known uranium occurrences, along trend of the
identified off-Property resource; the two occurrences include up to 798 parts
per million uranium in soil results and an intersection of 0.27% U(3)O(8) over
0.20 metres ("m"). Further details will be provided regarding the geology of
Drake Lake-Silas in due course.

Terms of the Acquisition

 Power Metal will pay consideration of £500,000 through the issue of new
ordinary shares of 2p each ("Ordinary Shares") in Power Metal at an issue
price of 0.161292 p each, being the volume weighted average price ("VWAP") in
the 30 trading days immediately prior to 19 September 2024. Accordingly,
3,099,968 new Ordinary Shares ("Consideration Shares") will be issued.

The vendors shall be entitled to dispose up to the vested portion of their
Consideration Shares on or after each of the vested dates as set out in the
table below:

 Vested date                                                          Vested portion (%)
 The date falling three calendar months after the date of Admission   25
 The date falling six calendar months after the date of Admission     50
 The date falling nine calendar months after the date of Admission    75
 The date falling twelve calendar months after the date of Admission  100

 

Admission and Total Voting Rights

 

Application will be made for the 3,099,968 Consideration Shares to be admitted
to trading on AIM which is expected to occur at 8.00 a.m. on or around  4
October 2024 ("Admission"). The Consideration Shares will rank pari passu in
all respects with the Ordinary Shares of the Company currently traded on AIM.

 

Following Admission, the Company's issued share capital will
comprise 114,287,742 Ordinary Shares of 2p 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.

 

 

Update on 2024 Fieldwork Programme

Highlights

 

·    Ground-based surveys have now been completed on seven properties
including Perch River, Tait Hill, Reitenbach, Thibault Lake, Clearwater, E12
and Cook Lake (collectively the "Properties"), with multiple exploration
methods, including soil, radon, helium and biogeochemistry (vegetation)
sampling employed.

 

·    The exploration work completed has been designed to test various
prospective areas within the Properties, including radiometric and helium
hyperspectral anomalies as well as prospective fault structures noted from
prior work completed by Power Metal and historical operators.

 

·    Two combined magnetic and radiometric surveys have been completed on
Soaring Bay and Thibault Lake. Preliminary results are in hand, with
post-survey processing ongoing.

 

·    In early-mid September, Power Metal completed a phase 1 soil sampling
campaign over a portion of Drake Lake-Silas, with results pending.

 

·    Final preparations are underway for next stage electromagnetic ("EM")
surveys which will be completed across Perch River, Badger Lake, East Hawkrock
and West Hawkrock. It is anticipated that these surveys will commence in early
October of this year.

 

 

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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