REG - Power Metal Res. - Uranium Energy Exploration Update

Power Metal ResourcesAnnouncement

13/12/2023 09:45

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231213:nRSM6487Wa&default-theme=true

RNS Number : 6487W  Power Metal Resources PLC  13 December 2023

13 December 2023

Power Metal Resources plc

("Power Metal" or the "Company")

Uranium Energy Exploration Update

Power Metal Resources plc (AIM:POW), the London listed exploration company
with a global project portfolio, is pleased to update the market on progress
and key developments relating to the conditional disposal of its Canadian
uranium assets as announced previously.

On 8 August 2022 and 4 November 2022, Power Metal announced the conditional
disposals of the Reitenbach and E-12 uranium properties respectively into
Teathers Financial plc ("Teathers"), which is to be renamed Uranium Energy
Exploration plc ("UEE"), the details of which can be found below:

https://www.londonstockexchange.com/news-article/POW/disposal-of-reitenbach-uranium-property-canada/15575269
(https://www.londonstockexchange.com/news-article/POW/disposal-of-reitenbach-uranium-property-canada/15575269)

https://www.londonstockexchange.com/news-article/POW/disposal-of-e-12-uranium-property-canada/15703304
(https://www.londonstockexchange.com/news-article/POW/disposal-of-e-12-uranium-property-canada/15703304)

Since then, considerable progress has been made on the structure of the
transaction and the advancement of the assets, a key component of which has
been the successful completion of a pre-IPO financing which is announced
today, together with further information in respect of next stage plans.

As noted in the announcement of 10 March 2023, Sean Wade, Chief Executive
Officer of Power Metal Resources plc, is a director of Teathers Financial plc.
Mr Wade is also a shareholder in Teathers Financial Plc.

 

PRE-IPO HIGHLIGHTS

-      Teathers/UEE has conditionally raised approximately £421,500
through a Pre-IPO financing ("Financing") undertaken at 1.241135p per Teathers
new ordinary share ("Ordinary Share").

 

-      Completion of the Financing is subject only to approval of
Teathers' shareholders at General Meeting, arrangements for which are being
finalised.

 

-      The capital raised enables Teathers/UEE to self-finance its
operations including its planned IPO advisory costs, corporate expenses and
various project expenditures.

 

-      No warrants are included automatically with the Financing, however
should warrants be offered as part of the planned IPO placing, participants in
this Pre-IPO financing will receive warrants on the same terms.

 

FURTHER HIGHLIGHTS

-      With the pre IPO Financing work complete, Teathers/UEE is now
moving to execute on further corporate initiatives in advance of its planned
Q1/Q2 2024 listing on the London capital markets ("IPO listing").

 

-      Based on the Teathers/UEE pre-IPO valuation and planned
conditional disposals by Power Metal of the Reitenbach and E-12 uranium
properties into Teathers/UEE, it is currently anticipated that upon completion
of the planned acquisitions by Teathers/UEE and its IPO listing, Power Metal
is expects to hold a significant interest in the newly listed vehicle.

 

-      Further updates are expected shortly in relation to the Power
Metal's uranium focused portfolio.

 

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

"I am very pleased to be able to report positive progress towards the UEE IPO.
Current market conditions are not conducive to capital raising, and the fact
that Teathers/UEE have outperformed expectations in this regard is further
validation of investor interest in new uranium focused opportunities.

I look forward to the planned IPO of UEE with a high quality collection of
uranium interests and an exciting period of exploration ahead.

Further updates will be provided to shareholders as material progress occurs."

 

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 (Nomad and Joint Broker)
 Ewan Leggat/Charlie Bouverat                                                    +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/Charlie Bouverat

+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.

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 grow the
Company 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  UPDEANADFLEDFEA