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RNS Number : 9634G Power Metal Resources PLC 18 November 2022
18 November 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Investee Update - Kavango Resources PLC
Power Metal Resources PLC (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
notes the announcement released today by Kavango Resources PLC ("Kavango"),
confirming the publication of its Prospectus. The announcement may be viewed
through the link below:
https://www.londonstockexchange.com/news-article/KAV/publication-of-prospectus/15722375
(https://www.londonstockexchange.com/news-article/KAV/publication-of-prospectus/15722375)
The publication of the Kavango Prospectus enables the issue to Power Metal of
various consideration items following the disposal of Power Metal's holding in
the Kanye Resources joint venture in Botswana, to Kavango. This was
announced on 8 July 2022 by Power Metal and that announcement may be viewed
through the link below:
https://www.londonstockexchange.com/news-article/POW/conditional-disposal-of-kanye-resources-interests/15532470
(https://www.londonstockexchange.com/news-article/POW/conditional-disposal-of-kanye-resources-interests/15532470)
The detailed consideration items to be issued to Power Metal and terms related
thereto are outlined in the 8 July 2022 announcement above (the
"Consideration").
This Consideration includes the issue to Power Metal of 60,000,000 Kavango new
ordinary shares.
Following the expected admission of the Kavango shares on 25 November 2022
("Admission"), and taken together with Power Metal's existing holding, the
Company will hold 69,500,000 shares equating to 9.85% of Kavango's issued
share capital (market value of £1.25million at the Kavango mid-price at
market close 17 November 2022).
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
"My congratulations to the Kavango team for the successful publication of
their Prospectus. Kavango now has 100% control of an extensive ground
footprint in Botswana and will be financed to advance at some pace with
potentially high-impact exploration. We wish them well and will be watching
developments closely.
Power Metal now moves to become a strategic investor in Kavango with an 9.85%
holding on Admission next week, carrying a value of some £1.25m at
yesterday's closing market mid-price.
The significant Kavango holding will sit alongside our 27.91% holding in First
Class Metals PLC valued at £2.78m at yesterday's closing market mid-price and
the two investments together a market value of £4.03m combined.
This in our view is just the start and our objective is to continue to build
the Power Metal balance sheet through corporate transactions underpinning the
financial value of the Company whilst our exploration activities continue at
some pace across our extensive global portfolio."
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.
Exploration Work Overview
Power Metal has multiple internal exploration programmes completed or
underway, with results awaited. The status for each of the Company's
priority exploration projects is outlined in the table below.
Project Location Current Work Completed or Underway Results Awaited
POW %
Athabasca Uranium Canada 100% Ground exploration programme complete at 3 properties. Preliminary planning Assay results from samples collected during fieldwork.
for work in Spring/Summer 2023 is ongoing.
Molopo Farms Botswana 87.71% First 2 holes at T1-6 conductor target drilling complete. T1-14 first hole Drill programme updates and findings from further MLEM survey work.
underway. Further MLEM surveys planned over additional AEM targets identified.
Tati Project Botswana 100% RC drilling and sampling of mine dumps complete. Mine dumps processing and project commercial and exploration next steps.
( )
Exploration work programmes may also be underway within Power Metal investee
companies and planned IPO vehicles where Power Metal has a material interest,
the findings from which will be released on their respective websites, with
simultaneous updates through Power Metal regulatory announcements where
required. These interests are summarised in the table below:
Company Status/Operations Link
First Class Metals PLC Investment - POW 27.91% www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)
Exploration in the Schreiber-Hemlo region of Ontario, Canada
Kavango Resources PLC Investment - POW 9.85% (on expected Admission 25.11.22) www.kavangoresources.com (http://www.kavangoresources.com)
Exploration in Botswana
First Development Resources PLC Planned IPO - POW 62.12% www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)
Exploration in Western Australia and the Northern Territory of Australia
Golden Metal Resources PLC Planned IPO - POW 83.13% www.goldenmetalresources.com (http://www.goldenmetalresources.com)
Exploration and development in Nevada, USA
New Ballarat Gold PLC Planned IPO - POW 49.9% A new website is currently in development which will be found at
www.newballaratgoldcorp.com (http://www.newballaratgoldcorp.com) .
Exploration in the Victoria Goldfields of Australia
In the interim further information in respect of NBGC can be found at:
https://www.powermetalresources.com/project/victoria-goldfields/
(https://www.powermetalresources.com/project/victoria-goldfields/) .
Uranium Energy Exploration PLC Planned IPO - POW on listing estimated 50-55% www.uraniumenergyexploration.com (http://www.uraniumenergyexploration.com)
Uranium exploration in the Athabasca region of Canada
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