REG - Power Metal - Strategic Update and Director Changes
10/03/2023 08:00
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RNS Number : 5623S Power Metal Resources PLC 10 March 2023
10 March 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
Strategic Update and Director Changes
Power Metal Resources PLC (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces a strategic business update providing the latest position of the
Company and its forward objectives, together with director changes to lead
Power Metal into the next stage of its business development.
STRATEGIC BACKGROUND
Company Historical Strategy
§ Power Metal has undergone rapid growth over the past four years. The
scale of the Company's acquisition, exploration and corporate development
activities over recent years positions the Company very well to generate
significant value at this point in the cycle.
§ From an initial concentration on west and central Africa in 2019 the
Company now has direct and indirect exposure to strategic resource exploration
projects in secure jurisdictions in North America, Africa and Australia,
across a commodity suite with metals that are demonstrating increasingly
critical global demand.
§ The work to build the Company has been carefully completed to a high
standard and during a highly volatile period for the junior resource sector.
That time has been used to accumulate and advance interests whilst valuations
in the sector have been modest and in readiness for stronger conditions during
a junior resource sector recovery, as we have seen many times in previous
cycles.
Building a Strong Management and Operational Team
§ Power Metal has built a strong UK based corporate team who are managing the
key areas of geology, company management, finance, compliance and
communications. The Company also works with established and capable UK
advisors and also in-country teams to conduct project-based operations in the
various jurisdictions in which it operates.
§ Together, the team have created a professional and disciplined operational
core to oversee the Company's global interests, and to manage the extensive
field operations and corporate activities completed and underway.
§ By necessity and to further build the momentum of the Company with wider
and impactful strategic partnerships, certain Board and senior management
changes are to be implemented as outlined below.
Focus of Operational Activities and Strategic Partnerships
§ Power Metal will apply greater focus to its operational activities, seeking
the efficient completion of spin-out IPOs and project disposals and
concentrate exploration on strategically important retained projects. This
increased focused is expected to more rapidly build value for shareholders.
§ The size and scale of the Power Metal business means it is ready for
partnerships at project and corporate level with larger mining companies and
internationally significant sector funds and institutions.
FOCUSING POWER METAL
An overview is provided on the status of all Power Metal project interests and
vehicles later in this report. It is important to recognise the Company's
strategic interests include but are not limited to:
Creating a Substantial Uranium Business
The Company is to build a greater focus on its strategic uranium business and
seeks to become the leading uranium exploration and development company in
London.
§ The initial focus is the Company's 100% interest in a 967km(2) uranium
project footprint in the Athabasca Basin area of Saskatchewan, Canada, over 16
properties (2 properties under disposal agreements).
§ Power Metal is looking to efficiently complete project staking and
acquisition of uranium properties in the Athabasca Basin region to add to its
existing portfolio and to secure high impact uranium opportunities globally
should they meet the Company's exacting investment criteria.
§ Power Metal will also complete, communicate and implement plans for
extensive exploration across retained uranium properties in 2023.
Uncovering District Scale Nickel and Gold Systems in Botswana
The Company will seek to expedite the release of results for priority
exploration projects already underway and focus on rapid advancement of
strategic Botswana interests. These include:
§ 87.71% interest in the district scale Molopo Farms Complex Project in
Botswana, with a 2,402m diamond drill programme completed, with geological
feeder zone model confirmed and nickel sulphides already confirmed, two
significant elements from exploration drilling undertaken, combined with
historical work, with assay results awaited.
§ 100% interest in the Tati Project in Botswana with an 8km long gold-in-soil
anomaly, where reverse circulation drilling in 2022 confirmed up to 47.1g/t
gold in a one metre composite sample with extensive follow-on exploration
currently underway, and the first stage of field work (geophysics and
trenching) now completed, with geophysical interpretation and assay results
awaited.
Driving Planned IPO Vehicles Forward
The planned IPOs have taken longer than originally anticipated. There are
reasons behind this including the extensive preparatory work in the pre-IPO
process, the need to complete work in all vehicles to enable immediate and
proactive exploration campaigns upon listing. Also proper recognition of
market conditions during 2022 is a factor, a year which saw a severe decline
in investor sentiment in the junior resource sector, with few IPOs occurring
in the sector generally.
Preparations for the first three IPO vehicles (see below) are now essentially
complete and the vehicles ready for listing have fully prepared proactive
exploration plans in place. We also believe there is increased investor
engagement and interest in 2023 generally and we are seeking to complete all
transactions as quickly as possible and are taking all necessary steps to
accomplish this.
Therefore, the focus commercially is to accelerate completion of all remaining
disposals and spin-out IPO-listings for all relevant projects and vehicles.
These include but are not limited to the following vehicles in which Power
Metal has a strategic interest:
§ Power Metal holds an 83.13% interest in Golden Metal Resources PLC ("GMR")
which through local subsidiaries holds the Pilot Mountain project containing
the largest known critical tungsten metal mineral resource estimate in the USA
and Golconda Summit a gold exploration target for a Carlin-style gold
discovery. GMR is undertaking a planned listing in London, has completed the
pre-IPO preparations and the IPO financing is underway.
§ Power Metal holds a 58.59% interest in First Development Resources PLC
("FDR") which through local subsidiaries holds the Wallal Project hosting
drill ready magnetic bullseye targets, demonstrating geophysical similarities
to the recent Havieron discovery made by Greatland Gold PLC and a large rare
earths, uranium and lithium project 65km north west of the Nolans rare earths
project held by Arafura Rare Earths Ltd. FDR is undertaking a planned listing
in London, has almost entirely completed the pre-IPO preparations and the IPO
financing is expected to commence shortly.
§ Power Metal has agreed the disposal of two uranium properties in the
Athabasca Basin to Teathers Financial PLC which is to be renamed Uranium
Energy Exploration PLC ("UEE"). The disposals are conditional on the
successful listing of UEE in London creating a new uranium exploration focused
company holding the Reitenbach and E-12 properties (Power Metal expects to
hold 50-55% of UEE on listing). The pre-IPO preparations are complete and the
IPO financing is expected to commence shortly.
§ Power Metal holds 49.9% of a joint venture company New Ballarat Gold
Corporation PLC ("NBGC") which holds, through its local subsidiary, a large
footprint of granted exploration ground in the Victoria Goldfields of
Australia including two former high-grade working mines and where recent
drilling (at Berringa) has confirmed visible gold in the core of the first
three holes drilled, assays awaited. The intention of the JV partners is for
NBGC to undertake a planned listing, with the technical results including
assay of the current drill programme forming part of the technical data
presented as part of that listing exercise.
DIRECTOR CHANGES
The entire Power Metal team have worked relentlessly to build the Company to
its current strong position in the junior resource environment.
The next steps taken by the Power Metal group are key to the delivery of value
to shareholders and the whole team. Specifically, board leadership of Power
Metal Resources PLC with its retained interests needs to be optimised to meet
the opportunities available to the Company.
When considering the Power Metal Board, consideration must always be given to
the suitability, availability and capability to commit the time and energy
required by the Company in the next stage of growth.
Reflecting this, certain Board changes are now being implemented for reasons
outlined in further detail below.
Sean Wade is to become an Executive Board Director and Chief Executive Officer
with immediate effect and is charged with driving Power Metal to the next
stage in its corporate growth as outlined in the "Focusing Power Metal"
section above.
Sean is an experienced corporate executive within the natural resource sector,
having held senior roles in mining companies including Berkeley Energia PLC,
Pensana PLC and Asia Resource Minerals PLC. He has worked on numerous
transactions in the capital markets, including IPO's, secondary capital
raising and M&A in a wide variety of different jurisdictions and
exchanges. His extensive network covers numerous capital providers, including
institutional funds, family offices and private wealth.
Sean started his career at Cazenove & Co in 1993. In 2007 he was a
founding shareholder in Liberum Capital. Since 2012, he has worked in
corporate business development and investor relations. He founded Scout
Advisory Limited in 2020 undertaking consultancy work with various listed and
private companies in the resource exploration mining sector.
His connections with internationally recognised mining companies and
investment institutions will enable the Company to develop corporate and
financial partnerships necessary to grow the business. We believe this network
will also help accelerate and cement the disposal pathways for certain
interests further enhancing the Company's financial strength.
As a result of and to focus on certain critical family health matters Paul
Johnson is to step down as Chief Executive Officer with immediate effect and
from the Board on 17 March 2023.
After stepping down Paul will continue working with the Company and the
corporate team on the managerial transition, continuing communication
strategies and notably to accelerate the work behind crystallisation of value
from the Company's interests. This will include anticipated completion of
disposal transactions and ongoing support for spin-out listings and disposals,
where applicable.
Scott Richardson Brown is to assume the role of permanent Non-executive
Chairman. This reflects Scott's service continuity as interim Non-executive
Chairman since October 2021, and the leadership of the Board and the Company
over that time.
Following completion of the above changes on 17 March 2023 the Board will
comprise:
Scott Richardson Brown - Non-executive Chairman
Sean Wade - Chief Executive Officer
Ed Shaw - Non-executive Director
Owain Morton - Non-executive Director
The Company is also planning to appoint a Finance Director reflecting the
expansion of business activities going forward, a Technical Director and an
additional Non-executive Director to complete the Board build-out at this
time.
Scott Richardson Brown, Non-executive Chairman commented: "I want to welcome
Sean to the Power Metal Board and as Chief Executive Officer. His extensive
relevant experience and connectivity across the resource industry will be a
major asset to the Company as we move to the next important stage of business
growth.
I am aware of the immense commitment Paul has made over four years building
Power Metal to the business it is today and the opportunity that presents for
shareholders in the Company. I also understand and support Paul's decision
to step down from the Board to enable him to deal with significant personal
challenges.
I think it is important to have Paul continuing to work with Power Metal in
the key areas of transition, communications strategy and value crystallisation
from the portfolio, something he has been instrumental in creating."
Paul Johnson Chief Executive Officer commented: "It has been a privilege to
bring Power Metal forward over the last four years, to the point where it is
now a global business with a portfolio of strategic project interests, in
optimal jurisdictions and positioned especially well in the junior resource
sector. I look forward to remaining involved with the Company, and its
commercial work.
As the largest shareholder and taking an objective view, this managerial
transition is the right step now for Power Metal to reach its fullest
potential. I will take great pride in watching Power Metal, as I expect,
take its rightful place amongst the leaders in this sector."
Sean Wade, incoming Chief Executive Officer commented: "I am very pleased to
be appointed as CEO to lead Power Metal. In my view, the Company has an
excellent resource asset set that is yet to be recognised by the wider market
and thus fairly reflected in the market capitalisation of the Company.
The exciting challenge of unlocking this inherent value will be addressed in
part by the completion of the disposal transactions and focusing our business
operations on advancing the key exploration interests in Africa, potentially
with strategic partners. In addition, and notably, there has been particular
interest in a well-planned, well communicated and well executed expansion of
the Company's uranium exploration activities.
I firmly believe that Power Metal is in a great position to advance its
projects and continue to gain recognition in the wider mining community and
with recognised sector focused investors."
ALL COMPANY INTERESTS IN OVERVIEW
Project/Vehicle Description Areas of Focus
Athabasca Uranium
Saskatchewan, Canada Power Metal currently holds 16 uranium prospective properties covering - Additional staking planned
967km(2) within and surrounding the prolific Athabasca Basin, including
(Uranium) property acquisitions and self-staked ground. Two properties are in the vend - Next step exploration planning
process (see UEE section below).
POW 100%
- Project partner discussions
Molopo Farms Complex Project Power Metal holds 87.71% of Kalahari Key Mineral Exploration Pty Limited
("KKME") which holds 100% of the Molopo Farms Complex Project ("MFC Project").
Botswana
- Release of technical review including drill assay results
A 2,402m diamond drill programme was undertaken in late 2022/early 2023 with
(Nickel - Copper - Platinum Group Element) five holes over four target geophysical anomalies completed. - Next step exploration planning
POW: 87.71% Work completed to date has crucially confirmed the geological feeder zone - Furthering potential project joint venture partner discussions
model and demonstrated multiple examples of the targeted nickel sulphides from with third parties.
assay results from the previous drill programme and visual core inspection
from the current drill programme where assays are awaited.
Tati Project
Botswana The Tati Project is centred on an 8km gold-in-soil anomaly (the "Anomaly"), - Trenching sampling results
including the former working Cherished Hope Gold Mine.
(Gold - Nickel)
- Geophysics results
POW: 100%
- RC & Diamond drilling to be undertaken
Reverse circulation ("RC") drilling completed in 2022 delivered high and
bonanza grade gold results including 47.1g/t gold in a one metre composite - Furthering discussions with partners for the processing of fines
sample. dumps.
The Company believes there is potential for a very large gold deposit over the
Anomaly and has already commenced an extensive 2023 work programme including
trenching, sampling, geophysics RC and diamond drilling.
New Ballarat Gold Corporation PLC (NBCG) Power Metal holds 49.9% of NBGC held in Joint Venture ("JV") with Red Rock
Resources PLC (LON:RRR - 50.1%) which through an Australian operating
Victoria, Australia subsidiary, Red Rock Australasia Pty Ltd, has a wholly owned and substantial - Drill programme completion
licence footprint within the Victoria Goldfields, Australia, which is
(Gold) comprised of 17 granted exploration licences covering 1,867km(2) and 2 licence - Drill assay results
applications covering 467km(2) including two former high-grade working mines
POW: 49.9% (Ajax and Berringa) where our technical team believe a considerable, and - Next step exploration planning
potentially high-grade, gold endowment remains.
- Update on IPO of NBGC
1,000m diamond drill programme underway at Berringa.
Golden Metal Resources PLC (GMT) GMT holds four projects centred on Nevada USA, including the earn-in to a 100%
interest in the Golconda Summit Project targeting a large Carlin-type gold
Nevada, USA deposit. - IPO financing update
Gold - Base Metals In addition GMT holds a 100% interest Pilot Mountain Project, which holds a - Listing in London
12.3mt Mineral Resource Estimate ("MRE") at 0.27% tungsten trioxide (WO(3))
POW 83.13% along with substantial silver, copper and zinc credits.
First Development Resources PLC (FDR) FDR holds three projects in Western Australia including Ripon Hills, Braeside
West and Wallal Project targeting precious and base metals. Wallal Project
Western Australia /Northern Territory includes the Eastern magnetic bullseye anomaly which is in a drill ready - IPO financing update
state, targeting an undercover large copper-gold discovery.
(Gold - Copper - Rare Earth Elements - Uranium - Lithium)
- Listing in London
In addition FDR holds the Selta Project in the Northern Territory which covers
POW: 58.59% approximately 1,600km(2) and is prospective for rare earth elements, uranium
and lithium.
New Horizon Metals In December 2022 the Company announced the merger of its 100% owned Wilan
Project (previous name Gawler Project) in South Australia with copper and gold
Australia exploration projects in Queensland. - Commercial pathway to be confirmed
(Gold, Copper, Uranium, IOCG) The new holding vehicle, New Horizon Resources Pty Ltd ("New Horizon") is
currently planning to list on a recognised stock exchange in the UK or
POW: 20% Australia. Interest has however been shown by existing listed Canadian and
Australian companies for outright acquisition of New Horizon, and New Horizon
is working with various parties in this regard.
ION Battery Resources Ltd (ION) ION holds three project interests including an earn in to a 100% interest in - Commercial pathway to be confirmed
the Authier North Lithium Project in Quebec, a 100% interest in the North Wind
Canada Lithium Project in Ontario and a 100% interest in the Doerksen Bay Graphite
Project in Saskatchewan.
(Lithium and Graphite)
POW 100%
It is expected that ION will be the subject of an outright disposal into an
existing listed company or will pursue its own IPO listing.
Uranium Energy Exploration PLC ("UEE")
Canada In 2022 Power metal announced the conditional disposal of two uranium - IPO listing update
properties in the Athabasca Basin region to Teathers Financial PLC (to be
(Uranium) renamed Uranium Energy Exploration PLC) which is to list in the London capital
markets.
POW circa 50-55% on vehicle listing & disposal completion
Work is continuing on this planned listing and further updates will be
provided in due course.
Haneti Project
Tanzania Power Metal is in discussions with joint venture partner Katoro Gold (LON:KAT - Project exploration and/or commercial pathway to be confirmed
- 65%) to determine the future of the Haneti Project.
(Polymetallic)
POW: 35%
The Company remains of the view that Haneti offers considerable potential,
with a commitment to proactive and methodical exploration.
Silver Peak Project
British Columbia, Canada Power Metal's exploration work at Silver Peak undertaken in 2020 and 2021, and - Commercial pathway to be confirmed.
a follow up site visit in 2022 confirmed high and bonanza grade silver at the
(Silver) Silver Peak Project, where former high-grade silver mining was undertaken.
POW: 30%
The Company believes there is potential for a considerable remaining silver
endowment and that Silver Peak is a valuable asset.
REGULATORY DISCLOSURES
The following information is disclosed pursuant to Rule 17 and Schedule Two
paragraph (g) of the AIM Rules for Companies in relation to Sean Edward Wade,
aged 52:
Current directorships and/or partnerships: Former directorships and/or partnerships (within the last five years):
Teathers Financial PLC Scout IR Limited
Uranium Energy Exploration Ltd Scout Advisory Limited
Keysford Limited
S&K Wade Properties Limited
102156730 Saskatchewan Limited
Mr Wade does not hold any shares in Power Metal.
Mr Wade has confirmed there is no further information to be disclosed pursuant
to paragraph (g) of Schedule 2 of the AIM rules.
As part of Mr Wades' employment contract Mr Wade will be issued with Power
Metal share options, namely, 12,500,000 options to subscribe for new Power
Metal ordinary shares of 0.1p each at an exercise price of 3.25 pence with a
life to expiry of 3 years from today (the "Director Options"). The Director
Options are subject to a minimum service period of 6 months and may not be
exercised until the volume weighted average price of Power Metal shares trades
at 5.0 pence for ten consecutive trading days.
PDMR DISCLOSURE
The notifications below, made in accordance with the requirements of the EU
Market Abuse Regulation, provide further detail on the director's share
dealing.
1 Details of the person discharging managerial responsibilities / person closely
associated
a) Name
Sean Edward Wade
2 Reason for the notification
a) Position/status
Chief Executive Officer
b) Initial notification /Amendment
Initial Notification
3 Details of the issuer, emission allowance market participant, auction
platform, auctioneer or auction monitor
a) Name
Power Metal Resources Plc
b) LEI
213800VNXOUPHTX53686
4 Details of the transaction(s): section to be repeated for (i) each type of
instrument; (ii) each type of transaction; (iii) each date; and (iv) each
place where transactions have been conducted
a) Description of the financial instrument, type of instrument ordinary shares of 0.1p each
Identification code ISIN: GB00BYWJZ743
b) Nature of the transaction
Issue of Options
c) Price(s) and volume(s)
Price(s) Volume(s)
3.25p 12,500,000
d) Aggregated information
- Aggregated volume 12,500,000
- Price 3.25p
e) Date of the transaction 10March 2023
f) Place of the transaction Off Market
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 - 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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