REG - Power Metal - Results for the Year Ended 30 September 2021
03/03/2022 12:15
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RNS Number : 5510D Power Metal Resources PLC 03 March 2022
3 March 2022
Power Metal Resources plc
("Power Metal" or the "Company")
Audited Financial Results for the Year Ended 30 September 2021
Power Metal Resources plc (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio,
announces its consolidated audited results for the year ended 30 September
2021, for the Company and its subsidiaries (together the "Group").
Highlights from the year under review:
Operational
· After an extensive preparatory period drilling commenced in
October 2020 at the Molopo Farms Complex Project ("MFC Project") in Botswana,
where the Company funded US$500,000 of exploration costs to earn-in to a 40%
direct project interest. Results were released during the course of the year
with potentially significant nickel sulphides identified from the three hole
drill programme and the company completed its earn-in during April 2021,
securing a direct 40% interest in the MFC Project.
· In January 2021 an option was secured over exploration interests
in the Paterson Region of Western Australia and during 2021 various amendments
were made to this original option culminating in the acquisition of a 5
licence exploration package covering 751km(2) post-year end. Work undertaken
during the year demonstrated the presence of magnetic bullseye anomalies
demonstrating geological and geophysical similarities to the Havieron deposit
discovered by Greatland Gold plc.
· January 2021 saw option agreements signed over exploration
project interests in the Hemlo Schreiber region in Ontario Canada, with
options crystallised in the year and it was then announced in September 2021
that the entire interests in the Hemlo Screiber region were sold to First
Class Metals Limited ("FCM") for £1 million through the issue to wholly owned
subsidiary Power Metal Canada Inc of 333,334 FCM shares at £3 per share. FCM
is seeking a listing on the London capital markets.
· The Company saw its 49.9% owned joint venture in the Victoria
Goldfields see its first licence applications granted and the launch of
inaugural ground exploration in February 2021, with various updates released
during the year confirming additional licence grants and gold exploration
progress.
· In March 2021 the Company confirmed the acceleration of its
earn-in to a 30% holding in the Silver Peak silver project in British
Columbia, Canada, and in July 2021 diamond drilling commenced which would
ultimately lead to the discovery of further bonanza grade silver, with
significant copper, lead and antimony credits.
· Also in March 2021, the company announced a business update from
its 50% owned joint venture with Kavango Resources plc in the Kalahari Copper
Belt ("KCB"), Botswana that saw the signing of conditional acquisition
agreements to acquire 8 new KCB licences and increasing the joint
arrangement's KCB ground footprint to 4,255km(2). The acquisitions were
completed in August 2021 and saw all KCB interests transferred to a new 50%
joint operating company Kanye Resources Pty Ltd.
· In May 2021 the Company secured an option agreement over two gold
- nickel prospecting licences in Botswana, and after due diligence exercised
the option in July 2021. Accelerated exploration led to the discovery of
multiple kilometre-scale gold, nickel and arsenic anomalies announced in July,
ultimately leading into a post-year end reverse circulation drill programme.
Following option exercise the two licences underlying the properties (the
"Tati Project") were successfully transferred post-year end into a new 100%
Power Metal owned Botswana holding company, Tati Greenstone Resources Pty Ltd.
· June 2021 saw the Company sign an Assignment and Assumption
Agreement to acquire a right to earn into a 100% interest in the Golconda
Summit Gold Property in Nevada USA, marking the Company's first project in
Nevada.
· Also in June 2021 acquisitions in Nevada continued with the
acquisition of a 100% interest in the Stonewall and Garfield exploration
projects from fellow AIM listed Sunrise Resources plc.
· July 2021 saw the identification of rare earth element drill
targets at the Ditau Camp project in Botswana, also held in the 50% owned
joint venture with Kavango Resources plc, Kanye Resources Pty Ltd.
· The Company signed an agreement in July 2021 through which it may
acquire a 100% interest in the Authier North lithium exploration property in
Quebec, Canada, situated adjacent to Sayona Mining's (ASX:SYA) Authier lithium
project.
· In September 2021 the Company launched a uranium staking
programme in the Athabasca area of Saskatchewan, Canada which ultimately saw
c.412km(2) of ground staked, allocated into 7 project packages.
Financial
· Loss for the year to 30 September 2021 of £622k (2020: £1.4
million);
· Pre non-controlling interest total equity of £6.3 million at
the year-end (2020: £2.7 million); and
· Raised £3.6 million in cash during the year from the exercise of
Power Metal share warrants, including by directors.
Post-year end
In November 2021, Power Metal raised over £1,050,000 gross proceeds through a
placing of 60,000,000 new ordinary shares of 0.1 pence each, at an issue price
of 1.75 pence per share. In conjunction with the placing, each new ordinary
shareholder receives an attaching warrant, to subscribe for a further new
ordinary share of 0.1 pence each, at an exercise price of 3.5 pence each,
expiring after two years.
Following the end of this reporting period, to the date of signing, the
Company has received funds of £593,481 in relation to warrant and option
exercises, issuing a total of 74,192,876 new ordinary shares.
Drilling programme commencement at Tati project in Botswana was announced
October 2021 with completion by the calendar year end and results dispatched
to Intertek in Australia for assay testing.
New copper anomalies identified at the Garfield project in Nevada USA, with
additional claims staked to cover the ground footprint over the identified
anomalies, as announced in October 2021.
In October 2021, it was announced that the final licence application was
granted at the Wallal project, leading to the Company signing a revised
agreement to acquire 100% of First Development Resources Australia Pty, via
its subsidiary First Development Resources Ltd. The transaction consideration
was funded through the issue of 13,333,333 Power Metal new ordinary shares at
an issue price of 2.75 pence each and 13,333,333 warrants over Power Metal
shares at an exercise price of 4.5 pence per ordinary share. Additional
consideration of 10,000,000 Power Metal shares at an issue price of 3.2 pence
and 10,000,000 warrants over Power Metal shares with an exercise price of 5.0
pence per ordinary share will be settled by Power Metal for all other
Australia licences with interests held by First Development Resources Pty Ltd,
owned by third parties to be transferred to First Development Resources Pty
Ltd.
Approval of the Environmental Management Plan was secured in October 2021 for
the Kalahari Copper Belt and Ditau Camp projects licence areas held in the
Kanye Resources joint venture with Kavango Resources plc clearing the last key
administrative step prior to drilling key targets at the project areas.
In October 2021, Power Metal Resources Australia Pty Ltd, a subsidiary of the
Company, submitted two licence applications in South Australia covering
1,994km(2) targeting Olympic Dam style mineralisation.
On 29 October 2021, the Group concluded the 100% share capital purchase of
First Development Resources Pty Ltd ('FDR Australia') for total consideration
of £749,743, consisting of £36,200 cash (AUD$66,000), 13,333,333 new
ordinary shares in the Company at a share price of 2.75 pence, 10,000,000 new
ordinary shares at a share price of 3.2 pence, and warrants with a total fair
value of £26,876. FDR Australia holds exploration interests in the Paterson
region of Western Australia and work in 2021 identified three magnetic
bullseye targets hosted within the Wallal Project. The acquisition meets the
definition of a business combination and will be accounted for using the
acquisition accounting method in accordance with the Group's accounting
policies.
Details of the fair value of identifiable assets and liabilities acquired,
purchase consideration and goodwill are as follows:
Fair value
£'000's
Prospecting and exploration rights 749
Cash and cash equivalents 1
Total fair value 750
Consideration 750
Goodwill -
There were no associated transaction costs.
The Company announced in November 2021 the signing of a 3 month option
agreement by Kavango Resources plc to acquire 51.15% of Kalahari Key Minerals
Exploration Pty Ltd. The acquisition will include the 5,313 shares in Kalahari
Key currently owned by Power Metal. The acquisition does not affect the 40%
project interest which the Company has earnt-in to. Following the transaction,
Kalahari Key is due to restructure, with the 40% project interest held by
Power Metal to transfer to interest in the company.
In November 2021, the Company announced it had signed an agreement for the
100% acquisition of the Selta project, located in the Northern Territory,
Australia. The acquisition will be made by the Company's wholly-owned
subsidiary, First Development Resources Ltd ("FDR"). Consideration includes
AUD $25,000 cash and £100,000 payable through the issue of 1,499,250 shares
in First Development Resources Ltd at an issue price of 6.67 pence per share.
Additional consideration in the form of FDR shares will be due as each of the
three licence applications are granted. Should all FDR shares be issued Power
Metals interest will dilute down to 83.33%. FDR is to seek a listing on the
London capital markets.
The Company announced in November 2021 it had exercised the option to acquire
a 100% interest in the Pilot Mountain Project from fellow AIM listed Thor
Mining plc, via its wholly-owed subsidiary, Golden Metal Resources Ltd. Power
Metal paid consideration of US$1,650,000 through the issue of 48,118,920 new
ordinary shares at an issue price of 2.5 pence per share (£1,202,973),
together with a US$115,000 cash payment and issue of Power Metal warrants to
Thor Mining plc.
In November 2021 the Company announced drill assay results from its 30% owned
Silver Peak Project in British Columbia Canada demonstrating bonanza grade
silver in 10 of 19 holes drilled, and in December 2021, overlimit assays for
copper, lead and antimony further increasing silver equivalent grades by an
average of 18.8%.
In November 2021 a detailed exploration update covering the Nevada projects
held through wholly Power Metal owned Golden Metal Resources Limited was
followed by a pre-IPO financing for Golden Metal raising £750,000 for was
announced in December 2021 at a pre-money valuation of £3.25million. Golden
Metal is seeking a listing on the London capital markets. Following completion
of the financing Power Metal's holding in Golden Metal will dilute down to
83.13%.
In November 2021 the Company received notification of the grant of one
exploration licence in the Victora Goldfields of Australia.
In December 2021 the Company's 49.9% holding in the Victoria Goldfields joint
venture was hived up to New Ballarat Gold Corporation PLC where Power Metal
holds the same 49.9% interest. Diamond drilling commenced in the joint venture
properties located in the state of Victoria in December 2021.
Sampling assay results of initial uranium exploration at 3 properties in the
Athabasca basin, Saskatchewan, Canada were announced, demonstrating up to
38,600ppm (3.86%) uranium highlighting the prospectivity of the uranium
properties examined.
January 2022 saw the launch of inaugural diamond drilling at the 35% Power
Metal owned Haneti Project in Tanzania, with a 3 hole 1,000 drill programme,
targeting nickel sulphide-copper-platinum group metal mineralisation.
Also in January 2022 a ground reconnaissance programme was commenced in the
Paterson Region, Western Australia to review and access locations for a
planned deep drill programme in 2022 seeking gold-copper mineralisation at
magnetic bullseye targets at the Wallal Project.
Following a rotary air blast drill programme completed in 2021 an inaugural
diamond drilling programme was launched in January 2022 at the Haneti Project
in Tanzania, targeting nickel, copper, cobalt and platinum group elements. The
programme was completed in February 2022 with core logging and sampling
currently being prepared for analysis and laboratory assay testing.
January 2022 saw the successful transfer of Tati Project prospecting licences
into Power Metal's wholly owned local operating company in Botswana triggering
share and warrant payments to the vendors
January also saw the renewal of key prospecting licences at the Molopo Farms
Complex project in Botswana.
The initial results from a uranium project data compilation at the Athabasca
Basin project interests in Saskatchewan, Canada, demonstrating considerable
prospectivity and to be used as the basis for planned 2022 exploration
programmes.
In January 2022, Power Metal completed the acquisition of the Pilot Mountain
project into a newly created Australian holding company and announced early
clearance of a US$500,000 tail benefit potentially due to vendor Thor Mining
plc.
Diamond drilling commenced in January 2022 at the Haneti Project in Tanzania
completing in February 2022, with samples being prepared for assay testing at
SGS Tanzania.
In February 2022 the Company received notification of the grant of three
exploration licences at the Selta Project in the Northern Territory,
Australia.
Notice of Annual General Meeting and Distribution of Accounts to Shareholders
The Company's Annual General Meeting ("AGM") will take place at 10.00am on 30
March 2022 at Suite 24, Temple Chambers, 3-7 Temple Avenue, London, EC4Y
ODT. The Company's Annual Report and Accounts for the year ended 30
September 2021 will be posted to shareholders this week. Copies of the Notice
of AGM and the Annual Report and Accounts will also be available on the
Company's website at www.powermetalresources.com
(http://www.powermetalresources.com) in due course.
Introduction
Power Metal Resources is an energetic hub of activity we believe to be
uncommon to the junior resource space, and certainly to an extent it has not
previously experienced as a public company.
The refinancing and restructuring undertaken in February 2019 kickstarted a
pathway of aggressive repositioning and confident growth, which was the only
way to restore the market's confidence after the Company's failings of the
past.
We commenced this financial year with six African project interests, augmented
by precious metal interests in North America and Australia. We ended the year
with a global business with considerable portfolio interests across North
America, Africa and Australia.
We have a model of proactive project search, selection and acquisition,
followed by immediate exploration to increase value. Thereafter projects
enter our in-house exploration portfolio or our corporate channel where we
seek disposals or spin-outs to generate significant value to build our asset
base and financial strength.
Our model is highly flexible, provides long-term sustainable balance sheet
growth and is driven by clear objectives, notably to do all in our power to
generate high returns for shareholders, working fairly with all business
partners and protecting and offering opportunity to the communities in which
we operate.
Operations Review
Projects
Africa
Botswana
Power Metal currently has six projects in Africa with a main focus on
Botswana, recognising the extremely positive operating environment for
diligent and respectful resource exploration companies in country, and the
tremendous resource endowment offering junior exploration companies the
opportunity for district-scale metal discoveries.
Our joint operation with Kavango Resources plc has been structured under a
single vehicle, Kanye Resources Pty Ltd ("Kanye Resources"), a Botswana
private company in which we hold a 50% interest and into which all prospecting
licences have been transferred. The previously announced plan is for our
interest to hive up into Kanye Resources PLC, a UK vehicle which would be used
as the host for a listing in the London capital markets. That plan remains in
place, albeit we have a high level of ground exploration underway, and our
focus during the recent financial year has been on further value enhancement
across the portolfio via these various ground exploration programmes. As the
hive up has not yet taken place, the joint arrangement has been reclassified
as a joint operation in the financial statements.
Ground exploration has delivered positive results with numerous prospective
drill targets identified across the South Ghanzi project in the Kalahari
Copper Belt ("KCB") targeting copper-silver and at the Ditau Camp project
targeting rare-earth elements and base metal mineralisation.
We have successfully added to the South Ghanzi project in Botswana, with the
addition of eight more prospecting licences in the financial year, including
the South Ghanzi extension and Mamuno licences at a cost of US$430,000 split
50/50 with our partners, Kavango Resources plc.
At the year end Kanye Resources held 4,257km(2) of prospective KCB ground over
ten licences and 1,386km(2) of ground over two licences representing the Ditau
Camp Project. This is an immense land holding, with ongoing ground exploration
proving up multiple drill targets and plans for extensive drilling as soon as
detailed preparatory work has been completed.
The financial year also saw the acquisition of the Tati Project in Botswana,
comprising two prospecting licences located near Francistown which are
prospective for gold and nickel. The Company exercised its option to earn 100%
over the project in July 2021 and paid a cash option fee of £50,000 which may
be offset against future drilling costs incurred by the project vendors'
wholly-owned drilling services company. Up to 5,833,332 shares to be issued at
3.0p comprises most of the consideration with an additional 5,833,332 warrants
over new Power Metal ordinary shares (50% at 5p and 50% at 7.5p).
Thorough due diligence and post-option exercise exploration programmes led to
the identification of multiple kilometre-scale gold, arsenic and nickel
anomalies which were subject to follow up exploration and notably a post-year
end reverse circulation drilling campaign.
Finally in Botswana, the Company made significant progress at the Molopo Farms
Complex project ("MFC Project") located in Botswana, where the Company funded
US$500,000 of exploration and in April 2021 completed its earn-in to acquire a
40% interest in the MFC Project. The funding covered the drilling of 3 deep
diamond drillholes into 3 geophysical targets, with the second hole
successfully intersecting nickel sulphides and platinum group metals as
announced in April 2021.
Follow-on technical analysis continued during the year with positive findings
released to the market leading to an option being signed post-year end with
Kavango Resources plc, for Kavango to take an interest in the MFC Project by
acquiring the majority of Kalahari Key Mineral Exploration Pty Ltd., which
holds the remaining 60% MFC Project interest after the completion of Power
Metal's earn-in.
The Democratic Republic of the Congo (the DRC)
The Company has a 70% interest in the Kisinka Project in the DRC where
previous exploration saw the identification of a 6.8km copper-cobalt anomaly.
In November 2020 assay results from a pitting and mapping exploration
programme demonstrated high copper and cobalt values.
In May 2021, the Kisinka Project was awarded a 25 year production licence
adding further value to the project and the next step including plans for
exploration were developed. Ultimately it was determined that exploration
drilling was the best follow-on step, and the company continued to work
post-year end to implement this in an acceptable manner.
Regrettably operational progress has been difficult to secure in an acceptable
manner in country, across a number of areas that we are seeking to resolve.
The next step in our planned exploration would be drilling, a costly affair
requiring us to have operational confidence through a well planned and cost
effective drill programme. Also, it is important to have the bedrock of strong
commercial relationships in country to underpin the project now, and
particularly in the event of forward exploration success. We have not had
adequate progress of late, or sufficient confidence to invest further at this
stage, and given this underlying uncertainty have taken the current decision
to impair our investment in full at this time (£841,000 including £156,000
investment and £685,000 intercompany loan balance). This is an accounting
transaction only which has no impact on Power Metal's cash position and we
will continue to work in-country to secure the progress we need to push this
project forward.
It is also noted that Power Metal deploys a continuous review of project
specific capital allocation, focusing its resources on those projects that
offer the best potential value upside and security of tenure, whereby value
generated will be protected, notably following major value events including
commercial discoveries.
Tanzania
The Company holds a 35% stake in the Haneti Project in Tanzania with partner
and fellow AIM listed Katoro Gold plc (LON:KAT) holding the remaining 65%.
During the year a rotary air blast drill programme was undertaken at the
Haneti Project, seeking to help delineate drill targets for follow-on diamond
drilling. The positive outcome of this programme was announced in April 2021,
which included the confirmation of targets and the discovery of new gossanous
nickel-copper veining at the Mihanza Hill target. Deep diamond drilling was
confirmed as the next step and this commenced post-year end in January 2022.
Australia
First Development Resources
During the year the company increased its exposure to Australian exploration
opportunities with an option secured in January 2021 to acquire a 100%
interest in First Development Resources Pty Limited ("FDR Australia"), a
company which held two exploration licence interests in the Paterson region of
Western Australia.
Various amendments were made to the original option agreement during the
course of the year and post-year end the Company acquired FDR Australia
outright through its wholly owned UK company First Development Resources
Limited ("FDR UK"). At the time of acquisition, FDR Australia had interests in
five exploration licences located in the Paterson region and during the year
and post-year end all FDR Australia licence interests achieved granted status
enabling the launch of inaugural ground exploration. Furthermore, heritage
agreements with the native title holders were prepared as a precusor step
required in advance of a planned diamond drilling campaign targeted in 2022.
The intention is to list FDR UK on the London capital markets and during the
year and post-year end work was undertaken in order to advance the company
towards its planned Q2 2022 listing.
Exploration was undertaken during the year which led to the identification of
three magnetic bullseye targets at the Wallal Project as announced in July and
September 2021. The Company believe that the anomalies bear geophysical
similarities to the Havieron deposit discovered by fellow AIM listed Greatland
Gold plc (LON:GGP) and also located within the Paterson region.
New Ballarat Gold Corporation
At the start of the year Power Metal held a 49.9% interest in Red Rock
Australasia Pty Ltd ("RRAL"), a joint venture vehicle with exploration licence
interests in the Victoria Goldfields, Australia. The remaining 50.1% was held
by fellow AIM listed Red Rock Resources plc (LON:RRR).
In September 2020 RRAL held 2,188km(2) of ground across twelve licence
applications where the application status meant material ground exploration
could not be undertaken. During the course of the year, a number of licence
applications were granted and ground exploration was launched.
By the year end, seven licence applications had been granted covering 848km(2)
and 1,458km(2) over nine licence applications were awaiting grant.
The original plan for RRAL was to secure a listing in Canada, however in
August 2021 the joint venture partners confirmed the focus for the listing was
changed to the London capital markets. Reflecting this, and post-year end, the
partners' interest in RRAL was hived up to a new company New Ballarat Gold
Corporation PLC, with Power Metal holding a 49.9% interest as before.
Exploration work during the year and post-year end delineated multiple drill
targets which led to the commencement of diamond drilling in December 2021 for
Buninyong, EL007271, and Pitfield EL007301.
North America
Silver Peak
Just prior to the start of the financial year, in September 2020, Power Metal
exercised an option to earn-in to a 30% interest in the Silver Peak project,
in British Columbia, Canada.
To secure this option, Power Metal made a payment of £129,683 to the vendors
comprising CAD$30,000 (£17,183) cash and £112,500 through the issue of
9,000,000 new Ordinary Shares (the "Option Exercise Shares") at a price of
1.25p per Option Exercise Share. In addition, the vendors were granted
9,000,000 warrants to subscribe for new Ordinary Shares in the Company at a
price of 1.75p with a three-year life to expiry.
The earn-in was competed in the financial year, as announced in March 2021.
In the original agreement, Power Metal was to pay CAD$250,000 against
exploration expenditure at the Silver Peak Project. Previously Power Metal
had paid CAD$141,048 and the remaining CAD$108,952 (£62,313) was paid to
clear the outstanding balance.
In addition Power Metal made a final earn-in payment of CAD$200,000
(£114,349), satisfied by the issue of 5,139,281 new Ordinary Shares to the
vendors of the Project. The number of shares to be issued was based on an
agreed seven-day volume weighted average price of Power Metal shares of
2.225p.
In addition, the vendors received 2,569,641 warrants to subscribe for new
Ordinary Shares exercisable at a price of 2.89p representing a 30% premium to
the issue price of the final payment shares. The final payment warrants have a
three year life to expiry from the date of announcement.
During the year, two drill programmes were undertaken at the Silver Peak
project, the first in November 2020 which was curtailed due to poor weather
conditions. Notwithstanding the challenges, the programme successfully
delineated very high-grade silver including 5,270 g/t silver (169.5 troy
oz/t). A further drill programme was undertaken in summer 2021 and completed
in August 2021. Results from this programme and from subsequent overlimit
assays were announced after the year end and demonstrated extensive bonanza
grade silver.
Authier North
In July 2021 the Company announced an agreement to earn-in to the Authier
North and Duval East lithium exploration properties in Quebec, Canada.
On signing of the agreement, Power Metal, on behalf of Power Metal Canada,
made initial earn-in payments to the vendors including a cash payment of
CAD$15,000 (c.£8,777) and a share based payment of CAD$50,000 (c.£29,257)
through the issue of 1,063,891 new Ordinary Shares of 0.1p each in Power Metal
at a price of 2.75p per share, ("Initial Earn-in Shares"). During the first
year Power Metal must expend CAD$25,000 (c.£14,628) on exploration costs on
the properties.
In year 2 Power Metal will make a cash payment of CAD$25,000 to the vendors
and a further share based payment of CAD$50,000 with the number of new
Ordinary Shares based on the ten consecutive trading day volume weighted
average Power Metal share price prior to the delivery of written confirmation
to the Vendors that Power Metal Canada wishes to proceed to year 2 of the
Option. During the second year Power Metal must expend CAD$50,000 on
exploration costs on the Properties.
In year 3 Power Metal will make a cash payment of CAD$25,000 to the Vendors
and a further share based payment of CAD$75,000 with the number of new
Ordinary Shares based on the ten consecutive trading day volume weighted
average Power Metal share price prior to the delivery of written confirmation
to the Vendors that Power Metal Canada wishes to proceed to year 3 payments.
During the third year Power Metal must expend CAD$100,000 on exploration costs
on the Properties.
Should all payments be made above, the total cost to Power Metal, on behalf of
Power Metal Canada, would be £242,832 over a maximum 3 year period, and
following that expenditure Power Metal Canada will hold a 100% interest in the
Property. Power Metal Canada can elect to accelerate all expenditures should
it wish, at any time, to allow earlier completion of the earn-in.
There is an existing 1% net smelter royalty ("NSR") over the Properties that
will remain in place. In addition, on completion of the earn-in Power Metal
will grant to the Vendors a further 1.25% NSR (the "Vendor NSR") and 0.5% of
the Vendor NSR may be bought back by Power Metal Canada at any time for a cash
payment of CAD$500,000. In total, prior to any buyback, the total NSRs amount
to 2.25% over the Property.
A soil sampling and mapping exploration programme was announced in September
2021, with the results released after the year end.
Athabasca Basin
In September 2021 the Company announced the staking of four 100% owned uranium
exploration properties covering a combined 10,869-hectares (109km(2)) giving
Power Canada a strong foothold in the prolific Athabasca Basin. The properties
include the Clearwater Uranium Property ("Clearwater"), Tait Hill Uranium
Property ("Tait Hill"), Thibaut Lake Uranium Property ("Thibaut Lake"), and
the Soaring Bay Uranium Property ("Soaring Bay").
Building on this initial acquisition, later in September 2021, the Company
announced an increase of ground to 241km(2) achieved through the staking of
additional ground immediately surrounding the Company's Clearwater, Tait Hill,
and Soaring Bay uranium properties, as well as the acquisition of three
additional uranium properties including the Cook Lake, E-12, and Reitenbach
properties (together the "Properties").
The cost of acquisition of the Properties was the staking cost only amounting
to CAD$14,458 by the financial year end. The uranium properties are held by
Power Canada through its 100% owned holding company 102134984 Saskatchewan
Ltd.
Ground staking to build the footprint continued after the year end, and an
initial sampling and mapping programme was undertaken at three of the
properties also after the year end.
Hemlo-Schreiber / First Class Metals
In January 2021 the Company acquired the Hemlo North project, an early stage
exploration opportunity prospective for both gold and base metal
mineralisation, situated over an underexplored part of the very prospective
Hemlo-Schreiber Greenstone Belt. Hemlo North consisted of 122 Single Cell
Mining Claims ("Claims") being vended as three contiguous claim packages;
Roger Lake (50 Claims); Olga Lake (42 Claims); and Dotted East (30 Claims),
over a total area of 25.82km(2).
The cost of acquisition of the Hemlo North project was CAD$120,000
(c.£69,130) of which CAD$60,000 (c.£34,565) was paid in cash and CAD$60,000
through the issue to the vendors of 1,152,233 new Ordinary Shares of 0.1p each
in the Company at an issue price of 3.0 pence per share.
Later in January 2021 the Company signed option agreements to acquire 4
further precious and base metal exploration properties in the
Hemlo-Schreiber region. The four option properties were located within 100km
west or southwest of the Company's Hemlo North project and included:
- McKellar, consisting of 58 Mining Claims (12.3km(2)) prospective
for both volcanogenic massive sulphide ("VMS") copper-lead-zinc mineralisation
and orogenic gold deposits.
- Enable, consisting of 41 Single Cell Mining Claims (circa
8.7km(2)) and underlain by gold prospective, greenstone belt.
- Magical, consisting of 14 Single Cell Mining Claims (circa
3km(2)) where regional geophysics data show a possible target related to the
intersection of a granitoid intrusion with a regional-scale magnetic
geophysics lineation.
- Coco East, consisting of 30 Single Cell Mining Claims (circa
6.4km(2)) considered prospective for both mesothermal lode gold and VMS
deposits.
For the acquisition of a 100% interest in the each of the option properties
the following cash and equity consideration was payable:
Property Name Cash POW Shares Note: POW Shares Total Consideration
(CAD$) (CAD$) (CAD$)
McKellar 50,000 50,000 960,000 100,000
Enable 30,000 30,000 576,000 60,000
Magical 20,000 20,000 384,000 40,000
Coco East 30,000 30,000 576,000 60,000
Total (if all properties acquired) 130,000 130,000 2,496,000 260,000
The POW shares payable as consideration were new Ordinary Shares of 0.1p each
in the Company at an issue price of 3.0 pence per share.
The Vendors will retain a 2% net smelter royalty ("NSR") in respect of each of
the properties. Power Metal may purchase 1% of each NSR for each property, at
any time, by making a cash payment to the Vendors of CAD$500,000 per Property.
The option over all four properties were exercised by the end of February
2021.
In September 2021, the Company announced the sale of all 5 projects to First
Class Metals Limited ("First Class"). First Class is a UK private company with
an existing portfolio of interests in the Schreiber-Hemlo region held through
its Canadian operating subsidiary First Class Metals Inc., and is currently
seeking a listing on a recognised stock exchange in London.
The total consideration was £1 million payable through the issue of 333,334
new Ordinary Shares of £1 each in First Class Metals Ltd ("First Class
Shares") at a price of £3 per share.
New Opportunities
Power Metal Resources
Power Metal Resources had a pipeline of new opportunities under review during
the year, some of which led to new transactions as detailed above.
The Company maintains strict criteria for project selection and only proceeds
with projects that complement existing business interests and planned strategy
and where transactions can be undertaken on reasonable commercial terms.
Power Capital Investments Ltd
In May 2021 the Company announced it had established a new 100% owned
subsidiary 'incubator' business: Power Capital Investments Ltd ("Power
Capital"). Power Capital will initially be fully funded by Power Metal.
Power Capital will actively identify small, entrepreneurial business ventures
with significant growth potential in the junior resource space and provide
support with regard to business management, project development and corporate
development to enable them to scale rapidly and realise their
potential. Power Capital may also provide financial support.
Power Capital will look to develop these high-potential early stage ventures,
to the point of sale, public listing, or incorporation into the Company's
portfolio, dependent on a set of key performance indicators to be established.
As a major shareholder in each selected business, Power Capital, and thereby
Power Metal, has the opportunity for significant capital appreciation from
each successful venture together with a self-created pipeline of new resource
projects for operational development by Power Metal.
Corporate Social Responsibility ("CSR")
The Company maintains a focus on CSR through internal policies and our
approach to external operational activities.
The priority given to this aspect of our work is shown in the fact that at
RRAL we recruited a community relations officer as the second employee
engaged, in order to start community engagement even in advance of any license
grant.
The Company will continue to prudently invest in the regions in which we have
business activities, in support of the communities where we operate. As an
early stage Company, Power Metal Resources is keen to employ workers from the
areas in which we operate, and to operate in a safe, responsible, and
reasonable manner.
As certain projects mature, we would expect our community engagement to become
more extensive in line with the level of operational activities.
Financial Review
The Group recorded an audited loss after tax for the year to 30 September 2021
of £622k (2020: loss of £1.4 million). The loss per share from continuing
activities was 0.05p (2020: 0.25p).
The Group's exploration activities during the financial year under review were
funded through the issue of shares to raise cash. In aggregate, new Ordinary
Shares were issued during the financial year, raising a total of approximately
£3.6 million from the exercise of warrants, including by directors.
We ended the financial year with a cash balance of £1.27 million (2020:
£0.91 million), which was enhanced post-financial year end by the November
2021 placing, raising £1.05 million gross proceeds through a placing of
60,000,000 new Ordinary Shares of 0.1 pence each, at an issue price of 1.75
pence per share, and the exercise of warrants and options bringing an
additional £593k into the Company post-year end.
Cash balances held at the year end are supplemented by listed company shares
and warrants (cash equivalents), which represent a further pool of accessible
cash available on the sale of shares in listed companies.
Targets for 2022
Our operational targets for the remainder of 2022 are:
· To advance our in-house exploration projects seeking to deploy
capital primarily on exploration drill programmes, targeting large scale metal
discoveries;
· To advance our spin out model, working to secure independent
listings of multiple vehicles, enabling the exploration packages that are spun
out to thrive with independent management, financing, strategy and operational
drive whilst building Power Metal's underlying asset value;
· To secure further disposals of project portfolio interests to
augment working capital, which alongside the creation of spin out value will
move the Company toward financial self-sustainability;
· To invest in, and focus on, Environmental, Social and Governance
policies to protect and advance the locations, people and opportunity of the
jurisdictions in which we work; and
· To focus on value creation from our existing portfolio of
interests first and foremost, and to seek to replenish that portfolio with
new, vibrant and meaningful opportunities.
Board Changes
Andrew Bell stepped down from the Board as Executive Chairman on 30 September
2021, whilst continuing to work with the Company in an advisory capacity for
at least 12 months.
Outlook
The Directors believe Power Metal is now positioned better than at any time in
its history, with 14 project packages across 3 continents, within 6 countries,
and targeting 10 important metals. We have within our portfolio opportunities
targeting precious, base and strategic metals. The Directors believe this
provides our shareholders with a dynamic and broad spectrum of exposure to
upside potential, driven by wider junior resource sector sentiment, the
forward supply/demand balance in the metals market and notably, from the
potential success of our exploration and corporate programmes.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2021
Note 2021 2020
£'000 £'000
Revenue 37 9
Gross profit 37 9
Operating expenses 4 (847) (835)
Impairment 5 (156) (970)
Fair value gains through profit or loss 445 415
Loss from operating activities (521) (1,390)
Share of post-tax losses of equity accounted joint ventures (102) (33)
Loss before tax (623) (1,414)
Taxation - -
Loss for the year from continuing operations (623) (1,414)
Other comprehensive income
Items that will or may be reclassified to profit or loss;
Exchange translation 1 (2)
Total other comprehensive income/(expense) 1 (2)
Total comprehensive expense for the year (622) (1,416)
Loss for the period attributable to:
Owners of the parent (592) (1,381)
Non-controlling interests (31) (33)
(623) (1,414)
Total comprehensive loss attributable to:
Owners of the parent (591) (1,349)
Non-controlling interests (31) (67)
(622) (1,416)
Earnings per share from continuing operations attributable to the ordinary
equity holder of the parent:
Basic and diluted loss per share (pence) 8 (0.05) (0.25)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2021
30 September 2021 30 September 2020
Note £'000 £'000
Assets
Intangible assets 5 800 156
Investments in associates and joint ventures 166 284
Financial assets at fair value through profit or loss 3,527 1,208
Property, plant and equipment 2 -
Non-current assets 4,495 1,648
Financial assets at fair value through profit or loss 179 -
Assets classified as held for sale 153 -
Trade and other receivables 6 175 110
Cash and cash equivalents 1,281 913
Current assets 1,788 1,023
Total assets 6,283 2,671
Equity
Share capital 7 7,705 7,286
Share premium 18,437 14,910
Shares to be issued - 22
Capital redemption reserve 5 5
Share based payment reserve 1,541 1,286
Exchange reserve 72 71
Accumulated losses (21,488) (20,911)
Total 6,272 2,669
Non-controlling interests (306) (275)
Total equity 5,966 2,394
Liabilities
Trade and other payables 9 317 161
Deferred consideration - 116
Current liabilities 317 277
Total liabilities 317 277
Total equity and liabilities 6,283 2,671
The financial statements of Power Metal Resources plc, company number
07800337, were approved by the board of Directors and authorised for issue on
2 March 2022.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2020
Share capital Share premium Shares to be issued Capital Redemption Reserve Share based payment Reserve Exchange reserve Retained deficit Total Non-Controlling Interests Total Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 October 2019 6,843 13,228 - 5 1,195 39 (19,530) 1,780 (208) 1,572
Loss for the period - - - - - - (1,381) (1,381) (33) (1,414)
Other comprehensive income/(expense) - - - - - 32 - 32 (34) (2)
Total comprehensive income / (expense) for the period - - - - - 32 (1,381) (1,349) (67) (1,416)
Issue of ordinary shares 443 1,768 22 - - - - 2,233 - 2,233
Costs of share issues - (86) - - - - - (86) - (86)
Share-based payments - - - - 91 - - 91 - 91
Total transactions with owners 443 1,682 22 - 91 - - 2,238 - 2,238
Balance at 30 September 2020 7,286 14,910 22 5 1,286 71 (20,911) 2,669 (275) 2,394
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2021
Share capital Share premium Shares to be issued Capital Redemption Reserve Share based payment Reserve Exchange reserve Retained deficit Total Non-Controlling Interests Total Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 October 2020 7,286 14,910 22 5 1,286 71 (20,911) 2,669 (275) 2,394
Loss for the period - - - - - - (592) (592) (31) (623)
Other comprehensive income - - - - - 1 - 1 - 1
Total comprehensive income / (expense) for the period - - - - - 1 (592) (591) (31) (622)
Adjustment for previous year (19) 19 - - - - - - - -
Issue of ordinary shares 438 3,546 (22) - - - - 3,962 - 3,962
Costs of share issues - (38) - - - - - (38) - (38)
Share-based payments - - - - 270 - - 270 - 270
Warrant exercises - - - - (15) - 15 - -
Total transactions with owners 419 3,527 (22) - 255 - - 4,194 - 4,194
Balance at 30 September 2021 7,705 18,437 - 5 1,541 72 (21,488) 6,272 (306) 5,966
CONSOLIDATED STATEMENT OF CASH FLOWS
AS AT 30 SEPTEMBER 2021
2021 2020
£'000 £'000
Cash flows used in operating activities
Loss for the year (623) (1,414)
Adjustments for:
Fair value adjustments (445) (415)
Share of post-tax losses of equity accounted joint ventures 102 33
Impairment 156 970
Expenses settled in shares - 267
Share-based payment expense 270 91
Foreign exchange differences 1 (2)
(539) (470)
Changes in working capital:
(Increase) in trade and other receivables (181) (78)
Increase in trade and other payables 156 95
Net cash used in operating activities (564) (453)
Cash flows from investing activities
Purchase of intangibles (528) -
Purchase of financial assets at fair value through profit or loss (2,184) (504)
Investment in joint ventures (256) (201)
Proceeds from investment disposals 261 20
Purchase of property, plant and equipment (2) -
Net cash outflows from investing activities (2,709) (685)
Cash flows from financing activities
Proceeds from issue of share capital 3,679 1,965
Issue costs (38) (85)
Net cash inflows from financing activities 3,641 1,880
Increase in cash and cash equivalents 368 742
Cash and cash equivalents at beginning of year 913 171
Cash and cash equivalents at 30 September 1,281 913
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
1. Reporting entity
Power Metal Resources plc is a public company limited by shares which is
incorporated and domiciled in England and Wales. The address of the Company's
registered office is 201 Temple Chambers, 3-7 Temple Avenue, London EC4Y 0DT.
The consolidated financial statements of the Company as at and for the year
ended 30 September 2021 include the Company and its subsidiaries. The Group is
primarily involved in the exploration and exploitation of mineral resources in
Africa, Australia, Canada and the US.
2. Going concern
The financial statements are prepared on a going concern basis. In assessing
whether the going concern assumption is appropriate, the Directors have taken
into account all relevant available information about the current and future
position of the Group, including current level of resources, additional
funding raised during the year and post-year-end, and the required level of
spending on exploration and drilling activities. As part of their assessment,
the Directors have also taken into account the ability to raise new funding
whist maintaining an acceptable level of cash flows for the Group to meet all
commitments.
In the current business climate, the Directors acknowledge the COVID-19
pandemic and has implemented logistical and organisational changes to underpin
the Group's resilience to COVID-19, with the key focus being minimising the
impact on critical work streams, ensuring business continuity and conserving
cash flows. COVID-19 may impact the Group in varying ways leading to the Group
reducing all non-essential expenditure, the potential impairment of assets
held, the Group's ability to finance exploration and drilling activities and
meet commitments relating to its investments, including for transactions
entered into after the financial reporting date. The inability to gauge the
length of such disruption further adds to this uncertainty. For these
reasons, the preservation of cash flows is a primary focus for the Directors.
The Directors have stress tested the Group's cash projections, which involves
preserving cash flows and adopting a policy of minimal cash spending for a
period of at least 12 months from the date of approval of these financial
statements. The Directors believe the measures they have put in place will
result in sufficient working capital and cash flows to continue in operational
existence, assuming that all exploration and drilling activities are managed
carefully and curtailed if necessary. For the Group to carry out the desired
levels of exploration and drilling activities, the Directors believe that it
needs to secure further funding either from a strategic partner or subsequent
equity raisings in the next financial year, which the Group has succeeded in
completing over recent years. Taking these matters in consideration, the
Directors continue to adopt the going concern basis of accounting in the
preparation of the financial statements.
The financial statements do not include the adjustments that would be required
should the going concern basis of preparation no longer be appropriate.
3. Intangible assets - prospecting and exploration rights
Rights acquired with subsidiaries are recognised at fair value at the date of
acquisition. Other rights acquired and development expenditure are recognised
at cost.
Exploration and evaluation costs arising following the application for the
legal right, are capitalised on a project-by-project basis, pending
determination of the technical feasibility and commercial viability of the
project. When a project is deemed not feasible, related costs are expensed as
incurred. Costs incurred include any costs pertaining to technical and
administrative overheads. Administration costs that are not directly
attributable to a specific exploration area are expensed as incurred, and
subsequently capitalised if it is reasonably certain that a resource will be
defined.
Capitalised development expenditure will be measured at cost less accumulated
amortisation and impairment losses.
4. Operating expenses
Operating expenses include: 2021 2020
£'000 £'000
Staff costs 686 296
Foreign exchange loss 14 1
Share based payment expense 249 46
Auditor's remuneration - audit services 27 24
Auditor's remuneration in respect of the Company amounted to £26,500 (2020:
£23,500).
5. Intangible assets
Group Prospecting and exploration rights
£'000
Cost
As at 30 September 2019 7,793
Disposals (6,667)
Balance at 30 September 2020 1,126
As at 30 September 2020 1,126
Reclassification from Investment in Joint Venture 273
Additions 527
Balance at 30 September 2021 1,926
Impairment
As at 30 September 2019 6,667
Charge 970
Disposals (6,667)
Balance at 30 September 2020 970
As at 30 September 2020 970
Charge 156
Balance at 30 September 2021 1,126
Net book value
At 30 September 2020 156
At 30 September 2021 800
The opening balance of intangible assets was initially recognised on the
acquisition of the Kisinka Copper-Cobalt project held by the Company's
subsidiary, Power Metal Resources SA. During the year, the Directors took the
decision to impair the Kisinka Project, and acquired interests in several
other projects, see below:
2021 2020
£'000 £'000
Intangible assets
Kisinka Copper-Cobalt Project - 156
Athabasca Uranium Project 3 -
Tati Gold-Nickel Project 186 -
Garfield & Stonewall Projects 83 -
Ditau Camp/South Ghanzi Projects 528 -
Total 800 156
The Directors regularly assess the carrying value of the Group's assets,
including its prospecting and exploitation rights, and write off any
exploration expenditure that they believe to be unrecoverable.
Kisinka Copper-Cobalt Project
Following the discovery of a 6.8km copper anomaly at the Company's 70% owned
Kisinka Project near Lubumbashi in the DRC, Power Metal conducted a follow
pitting, sampling, and mapping programme in early 2020. The programme was
conducted successfully on the ground with in-country X-ray Fluorescence (XRF)
of samples confirming the previously identified copper anomaly. Samples were
prepared for assay testing in South Africa, the results from which confirmed
high grade copper and cobalt.
The licence renewal at Kisinka Project was to be commenced in the year but the
decision was taken instead to convert the licence to a Permis d'Exploitation
(production licence) with a 25-year life. As part of the process 50% of the
less prospective ground is to be surrendered, leaving the Company with 41
carrés miniers (each 84.95 ha). This licence was granted in May 2020.
Next stage exploration is drill testing of the 6.8km copper-cobalt geochemical
anomaly identified previously, with preparations continuing for drilling
including target refinement and sourcing of appropriate contractors.
A decision was taken to impair the value of the Kisinka Project in The
Democratic Republic of the Congo in full (£155,584) to reflect uncertainty
due to the lack of progress in country in 2021, and reflecting the increased
importance of Power Metal investing operational resources and capital into its
wider project portfolio where material progress is being made. Work will
continue in-country to seek more definitive progress.
Athabasca Uranium Project
In September 2021, the Company acquired seven properties over a combined
24,097-hectares, giving the Group a strong foothold in the prolific Athabasca
basin, in northern Saskatchewan, Canada, all of which are prospective for
uranium mineralisation. The properties were acquired through 102134984
Saskatchewan Ltd, which is wholly owned by the Company's wholly-owned
subsidiary Power Metal Resources Canada Inc.
Work is being undertaken to assemble detailed project information and to
determine next steps for the newly acquired properties.
Tati Gold-Nickel Project
The Company exercised its option to acquire a 100% interest in the Tati
Gold-Nickel Project in July 2021, through its wholly owned operating
subsidiary Power Metal Resources Botswana Pty Ltd.
The Project recently completed its Phase I and Phase II work programmes, which
included high-resolution soil sampling (1,107 samples collected), mapping and
prospecting (49 rock samples collected), as well as ground-based geophysics
including high-resolution magnetic and radiometric surveys.
The results have highlighted five target areas across the two licences, which
are defined by kilometre-scale geochemical anomalies that are coincident with
various geological structures that were highlighted by the ground geophysical
surveys.
Drilling commenced early in October 2021, targeting large scale gold and
nickel discoveries and which will include roughly 1000m of reverse circulation
(RC) drilling across the various target areas.
Garfield/Stonewall Projects
The two exploration properties in Nevada were acquired in June 2021, through
the Company's wholly owned operational subsidiary, Golden Metal Resources Ltd.
Initial exploration now launched includes the processing of various Aster and
Worldview-3 hyperspectal satellite imagery datasets over the Garfield
Property, which will allow for the remote mapping of various iron and
hydrothermal alteration minerals. In October 2021, copper anomalies were
identified at the Garfield property. Remote sensing studies including Advanced
Spaceborne Thermal Emission and Reflection Radiometer and European Space
Agency Sentinel-2 datasets highlighted considerable additional prospective
ground (now staked).
The Company have commissioned a gold deposit geologist to undertake a
comprehensive historic data analysis at the Stonewall property. Favourable
structural zones for potential epithermal gold mineralisation were identified
near the eastern and western end of exposed Stonewall vein, representing
compelling high-priority exploration targets going forward.
Ditau Camp/South Ghanzi Projects
In September 2020, the Company acquired 50% of four prospecting licences in
Botswana, from Kavango Resources Plc, with a view to creating a new joint
venture based in Botswana. During the year, the licences were transferred into
a new joint venture holding company, owned 50% by Kavango Resources Plc, and
50% by Power Metal. As the original contractual arrangement for joint control
of the licences, rather than the holding company, remains in place, the
investment has been reclassified as a joint operation during the year
(£273,000 as above), and subsequently the initial investment has been removed
from Investments in Joint Ventures to Intangible Assets with assets,
liabilities, expenses and revenue for the period recognised on a line-by-line
basis in Power Metal's financial statements.
Approval of the Environmental Management Plan was secured in October 2021 for
the Kalahari Copper Belt and Ditau Camp projects licence areas held in the
Kanye Resources joint venture with Kavango Resources plc clearing the last key
administrative step prior to drilling key targets at the project areas.
Numerous prospective drill targets were identified across the South Ghanzi
project in the Kalahari Copper Belt targeting copper-silver, and at the Ditau
Camp project targeting rare-earth elements and base metal mineralisations.
Eight more prospecting licences were added to the South Ghanzi Project during
the year. At the year end Kanye Resources held 4,257km(2) of prospective KCB
ground over ten licences and 1,386km(2) of ground over two licences
representing the Ditau Camp Project
6. Trade and other
receivables
Group 2021 2020
£'000 £'000
Accounts receivable 104 10
Other receivables 19 65
Prepayments 52 35
175 110
Company 2021 2020
£'000 £'000
Receivables due from group undertakings 605 606
Accounts receivable 104 10
Other receivables 19 65
Prepayments 52 35
780 716
7. Share capital
Number of ordinary shares
2021 2020
Ordinary shares in issue at 1 October 818,316,542 372,838,101
Issued for cash 425,140,840 416,626,316
Issued in settlement for expenses - 28,852,125
Issued in settlement for acquisitions 13,601,405 -
In issue at 30 September - fully paid (par value 0.1p) 1,257,058,787 818,316,542
Number of deferred
shares
2021 2020
Deferred shares in issue at 1 October 3,628,594,957 3,628,594,957
In issue at 30 September 3,628,594,957 3,628,594,957
Ordinary
share capital
2021 2020
£'000 £'000
Balance at beginning of year 7,286 6,843
Prior Year Adjustment (19) -
Share issues 438 443
Balance at 30 September 7,705 7,286
Share Premium
2021 2020
£'000 £'000
Balance at beginning of year 14,910 13,228
Prior year adjustment 19
Share issues 3,547 1,768
Expenses relating to share issues (38) (86)
Balance at 30 September 18,438 14,910
The prior year adjustment relates to a previous misallocation between share
capital and share premium, relating to a share issue in the year ended 30
September 2017. £19,011 was incorrectly allocated to share capital, this has
been rectified in the year ended 30 September 2021, the amount has not been
corrected in the prior year as it is deemed immaterial.
All ordinary shares rank equally with regard to the Company's residual assets.
The holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at meetings of the
Company.
Both classes of deferred shares (Deferred and Deferred A), do not entitle the
holders thereof to receive notice of or attend and vote at any general meeting
of the Company or to receive dividends or other distributions or to
participate in any return on capital on a winding up unless the assets of the
Company are in excess of £1,000,000,000,000. The Company retains the right
to purchase the deferred shares from any shareholder for a consideration of
one penny in aggregate for all that shareholder's deferred shares. As such,
the deferred shares effectively have no value. Share certificates will not
be issued in respect of the deferred shares.
Issue of ordinary shares
During the year, 425,140,840 shares were issued in relation to warrant
exercises; 181,150,000 were exercised at 1.0 pence per share, 5,000,000 were
exercised at 2.0 pence per share, 6,000,000 were exercised at 0.5 pence per
share, 122,250,000 were exercised at 0.7 pence per share, and 110,740,840 were
exercised at 0.75 pence per share.
In January 2021, the Company secured an exclusive 60-day option to acquire a
100% interest in First Development Resources Pty Ltd. The Company paid the
vendors a total consideration of £30,000 for the option, through the issue of
1,000,000 new ordinary shares at a price of 3.0 pence per share.
In January 2021, the Company signed an agreement to acquire a 100% interest in
four separate gold exploration properties located in Ontario, Canada. The
Company paid the vendors a total consideration of US$60,000 for the option,
through the issue of 1,152,233 new ordinary shares at a price of 3.0 pence per
share.
In February 2021, the Company exercised its option to acquire a 100% interest
in McKellar. The Company paid the Vendors a total consideration of US$50,000
for the Option, through the issue of 960,000 new ordinary shares at a price of
3.0 pence per share.
In February 2021, the Company exercised its option to acquire the Coco East
Property. The Company paid the Vendors a total consideration of US$30,000 for
the Option, through the issue of 576,000 new ordinary shares at a price of 3.0
pence per share.
In February 2021, the Company exercised its option to acquire both the Magical
Property and the Enable Property. The Company paid the Vendors a total
consideration of US$50,000 for the Option, through the issue of 960,000 new
ordinary shares at a price of 3.0 pence per share.
In April 2021, Power Metal accelerated its earn-in to the Silver Peak project
to hold 30%. The final earn-in payment of CAD$200,000 (£114,349) was made
through the issue of 5,139,281 new ordinary shares at a price of 2.225 pence
per share.
In June 2021, the Company signed an agreement to to acquire gold-copper
projects in Nevada. The Company paid the vendors a total consideration of
£61,875 for the option to be held by the Company's subsidiary, Golden Metal
Resources Ltd, through the issue of 2,250,000 new ordinary shares in the
Company at a price of 2.75 pence per share.
In July 2021, the Company exercised its option to acquire a 100% interest in
two gold-nickel exploration licences within the Tati Greenstone Belt. The
Company paid an initial consideration of £25,000 payable through the issue to
the Vendors of 833,333 new ordinary shares of 3.0 pence in the Company.
In September 2021, the Company's subsidiary acquired an option to acquire 100%
interest in the Pilot Mountain project. Consideration of £12,500 was paid
through the issue of 500,000 new ordinary shares in the Company at an issue
price of 2.5 pence per share.
8. Earnings per share
Basic and diluted loss per share
The calculation of basic and diluted loss per share is based on the loss
attributable to ordinary shareholders of £591,938 (2020: £1,381,290), and a
weighted average number of ordinary shares in issue of 1,079,317,932 (2020:
558,893,170).
9. Trade and other payables
Group
2021 2020
£'000 £'000
Trade payables 250 24
Accrued expenses 67 137
317 161
Company
2021 2020
£'000 £'000
Trade payables 146 24
Accrued expenses 74 137
Payable to group undertakings 27 31
247 192
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
Paul Johnson (Chief Executive Officer) +44 (0) 7766 465 617
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
NOTES TO EDITORS
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.
Power Metal Exploration Programmes Underway/Results Awaited
Power Metal has exploration programmes completed or underway, with results
awaited, as outlined below:
Project Location POW % Work Completed or Underway Results Awaited
Alamo Gold Project USA Earn-in to 75% Excavation of multiple test pits and mapping & sampling. Field and assay results from on-site work programme.
Athabasca Uranium Canada 100% Data compilation across uranium properties Interpretation results from 5 of 7 properties.
Authier North Lithium Canada Earn-in to 100% Soil & rock sampling completed Interpretation of laboratory assay results of samples collected defining next
exploration steps.
Ditau Project Botswana 50% Preparatory exploration work underway on target I10 leading to planned Field programme findings and defined drill targets for near term drilling.
accelerated drilling targeting rare-earth elements and base metals
Kalahari Copper Belt Botswana 50% Exploration programme underway across the South Ghanzi Project and further Field programme findings and defined drill targets for near term drilling.
exploration at the more recently acquired South Ghanzi Extension and Mamuno
licence areas
Molopo Farms Botswana 53%(A) Kavango Option to acquire an interest in local project holding company. Results from various work activities underway as part of the Kavango Option.
Option fee payable through defined work programme
Tati Gold/Nickel Botswana 100% Reverse circulation drill programme completed Laboratory assay results awaited.
Haneti Project Tanzania 35% Diamond drill programme completed Laboratory assay results awaited.
Selta Uranium Rare Earth Element Project Australia 83.33% Geological, geophysical and geochemical review across the project. Findings of review including confirmation of key targets for next stage
exploration.
Victoria Goldfields Australia 49.9% Diamond drill programme underway Field updates and Laboratory assay results awaited.
Paterson Projects Australia 83.33% Wallal passive seismic and 2D seismic processing work programme completed. Findings from multiple work programmes including final approvals and
preparations for planned deep diamond drilling.
Review of historical data and target generation for Ripon Hills & Braeside
West projects
(A) should Kavango exercise their option to acquire Kalahari Key, Power Metal
interest would reduce to 40% of the Molopo Farms Complex project
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. END FR FXLFBLXLEBBKRecent news on Power Metal Resources
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