REG - Power Metal - Uranium Acquisitions - Athabasca Basin Canada

Power Metal ResourcesAnnouncement

26/07/2022 11:30

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RNS Number : 7785T  Power Metal Resources PLC  26 July 2022

 

26 July 2022

Power Metal Resources plc ("Power Metal" or the "Company")

Uranium Acquisitions - Athabasca Basin Canada

 

Power Metal Resources plc (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces an acquisition of additional uranium properties surrounding the
Athabasca Basin in northern Saskatchewan, Canada (the "Acquisition").

HIGHLIGHTS:

·    Power Metal has acquired outright three uranium properties covering
271km(2) surrounding the prolific Athabasca Basin in Saskatchewan, Canada.

 

·    The cost of the Acquisition is CAD$137,500 (£88,872) payable as
CAD$25,000 (£16,158) cash and CAD$112,500 (£72,714) through the issue of
5,703,599 new ordinary shares of 0.1p in the Company ("Ordinary Shares") at an
issue price of 1.275p.

 

·    The Acquisition increases Power Metal's Athabasca uranium interests
to 10 properties covering an area totalling 721km(2).

 

·    Planning is nearing completion for the ground exploration programmes
to commence in the near term at the Tait Hill, Soaring Bay, Clearwater and
Thibault Lake uranium properties, further information in respect of which was
announced on 12 July 2022.

 

·    In addition to exploration of retained uranium projects, the Company
is working on corporate options in relation to certain of its Athabasca
uranium interests.

 

Paul Johnson, Chief Executive Officer of Power Metal Resources commented:

"We have acted quickly to secure this additional uranium package in the
Athabasca Basin area of Saskatchewan, Canada. With these acquisitions our
portfolio of 10 properties now covers a combined total footprint of 721km(2).
 The scale of this holding presents a significant project package especially
given the importance of the highly prospective uranium exploration in the
region. We are also looking to add further ground to our holdings.

However, that said, it is not merely a move to scale that we seek, but a
strategic uranium package enabling us to develop a combination of internal
exploration projects, and to generate value through the commercialisation of
certain of the properties.

This is the essence of the Power Metal business with metal discoveries through
exploration, combined with corporate activity to build balance sheet
strength.  Both strategies individually can potentially deliver significant
value for shareholders, and together they represent a powerful combination.

Further news updates covering our uranium interests are expected in the near
future."

TRANSACTION TERMS

Power Metal has acquired a 100% interest in three uranium exploration
properties Reindeer Lake, Old Woman Rapids and Porter Lake as detailed in
Table 1 below (the "Properties").

The vendors of the Properties (the "Vendors") are a consortium led by
established local prospector Brian Fowler who was previously the vendor of the
Schreiber-Hemlo properties that Power Metal sold in exchange for a strategic
shareholding in First Class Metals plc, as announced on 7 September 2021.

As consideration for the 100% acquisition of the properties, Power Metal will
pay the Vendors a total of CAD$137,500 (£88,872) (the "Consideration").

 

The Consideration is payable as CAD$25,000 (£16,158) cash and CAD$112,500
(£72,714) through the issue of 5,703,599 new Ordinary Shares of 0.1p at an
issue price of 1.275p ("Acquisition Shares").  Acquisition Shares will be
held for at least 4 months from the date of this Agreement unless Vendors and
Power Metal agree otherwise in writing.

 

 

NEW PROJECT ADDITIONAL INFORMATION

Porter Lake Uranium Property Overview

 

·    The Porter Lake uranium Property is located approximately 60km south
of Sandy Lake, Saskatchewan, and is less than 35km west of the all-season
Provincial highway 914 which services the Key Lake and McArthur River uranium
mines located northeast of the Property. The Property shares an extended claim
border with Canadian listed ALX Resource Corp. (CSE: AL).

 

·    The Property covers 108.54 km(2) and is less than 1km southwest along
strike of Baselode Energy Corporation's Catharsis Project. The Porter Lake
Property is located near to the geological contact between the Western
Wollaston and Mudjatik domains - two highly prolific geological domains where
over 2 billion pounds of Triuranium Octoxide (U(3)0(8)) have been
discovered.(1)

 

·    Multiple uranium-rich occurrences have been discovered within the
Property including a large (610m) radiometric anomaly, outlined in the
Government of Saskatchewan 1954 airborne geophysical survey that was later
drill tested by Nova Uranium Mines Ltd. in 1955 and which returned drill
intercepts of up to 0.21% U(3)0(8) over 0.6m.

 

Old Woman Rapids Uranium Property Overview

 

·    The Old Woman Rapids Property is located approximately 80km northeast
of Buffalo Rapids, Saskatchewan, and is less than 60km west of the all-season
Provincial highway 914 which services the Key Lake and McArthur River uranium
mines located northeast of the Property.

 

·    The Property covers 129.58 km(2) and is located less than 25km
southwest along strike of Baselode Energy Corporation's Catharsis Project.
Like the Porter Lake Property the Old Woman Rapids Property is located near to
the prospective geological contact between the Western Wollaston and Mudjatik
domains.(1)

 

·    Multiple uranium-rich occurrences have been discovered within the
property including rock grab samples that returned assays of 0.57% and 0.43%
U(3)0(8) and 0.66% and 0.80% Thorium Dioxide (ThO(2)) respectively.

 

Reindeer Lake Uranium Property Overview

 

·    The Reindeer Lake Property is located approximately 30km north of
Southend, Saskatchewan, and less than 15km west of the all-season Provincial
highway 905. The Property shares a claim border with privately owned Ripple
Exploration Limited's Williams Lake Property.

 

·    The Property covers 33.66 km(2) and is centred around the
Saskatchewan Mineral Deposit Index (SMDI) Porter Lake Uraniferous Pegmatite
showing.

 

·    Several uranium-rich occurrences have been discovered within the
Property including rock grab samples that returned values of up to 0.084%
U(3)0(8). The samples were taken following the completion of an airborne
radiometric survey in 1969 carried out by Sunlite Oil Company Limited that
outlined multiple anomalies around the shores of Porter Lake. Uranium Bloom
was noted at several localities around the lake which were coincident with the
airborne anomalies identified.

 

URANIUM PROPERTIES - HOLDING STRUCTURE

Power Metal has a 100% subsidiary Power Metal Canada Inc ("Power Canada"),
which acts as the holding Company for certain Canadian project operations.
Power Canada has a wholly owned subsidiary, 102134984 Saskatchewan Ltd,
which is the holder of the Company's Athabasca uranium portfolio.

Table 1: 102134984 Saskatchewan Ltd., Athabasca Basin Property Holdings*

 

 Project                        Licence ID      Area        Area

                                                (Hectare)   (km(2))
 Clearwater Uranium Property    MC00015079      1,110       11.1
                                MC00015083      563         5.63
                                MC00015082      3,191       31.91
                                MC00015151      760         7.6
                                MC00015646      761         7.61
                                MC00015658      1,541       15.41
 Tait Hill Uranium Property     MC00015078      1,576       15.76
                                MC00015081      968         9.68
                                MC00015153      1,530       15.3
                                MC00015152      1,886       18.86
                                MC00015647      725         7.25
                                MC00015648      1,129       11.29
 Thibaut Lake Uranium Property  MC00015077      2,206       22.06
                                MC00015659      2,195       21.95
 Soaring Bay Uranium Property   MC00015080      1,255       12.55
                                MC00015155      3,375       33.75
                                MC00015874      748         7.48
                                MC00015875      2,529       25.29
 Cook Lake Uranium Property     MC00015212      984         9.84
 E-12 Uranium Property          MC00015213      1,323       13.23
 Reitenbach Uranium Property    MC00015214      2,135       21.35
                                MC00015474      1,235       12.35
                                MC00015655      4,570       45.7
                                MC00015656      5,322       53.22
                                MC00015657      856         8.56
                                MC00015824      528         5.28
 Reindeer Lake*                 MC00015522      3,336       33.36
 Porter Lake*                   MC00015561      5,656       56.56
                                MC00015562      5,198       51.98
 Old Woman Rapids*              MC00015563      4,851       48.51
                                MC00015564      5,063       50.63
                                MC00015565      3,044       30.44
 Total Licence Holding Area                     72,149      721.49km(2)

* Property acquisition announced today - licence transfers in progress

 

References

1 - https://baselode.com/projects/catharsis-project/
(https://baselode.com/projects/catharsis-project/)

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 5,703,599 Acquisition Shares to be admitted
to trading on AIM which is expected to occur on or around 2 August 2022
("Admission"). The Acquisition Shares will rank pari passu in all respects
with the ordinary shares of the Company currently traded on AIM.

Following Admission, the Company's issued share capital will
comprise 1,537,512,064 ordinary shares of 0.1p each. This number will
represent the total voting rights in the Company and may be used by
shareholders as the denominator for the calculation by which they can
determine if they are required to notify their interest in, or a change to
their interest in, the Company under the Financial Conduct Authority's
Disclosure and Transparency Rules.

COMPETENT PERSON STATEMENT

 

The technical information contained in this disclosure has been read and
approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a
qualified geologist and acts as the Competent Person under the AIM Rules -
Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal
consultant working for Mining Analyst Consulting Ltd which has been retained
by Power Metal Resources PLC to provide technical support.

 

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 internal exploration programmes completed or underway, with
results awaited, as outlined in the table below.

 

Exploration work programmes may also be underway within 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:

 

www.firstclassmetalsplc.com (http://www.firstclassmetalsplc.com)

www.goldenmetalresources.com (http://www.goldenmetalresources.com)

www.firstdevelopmentresources.com (http://www.firstdevelopmentresources.com)

 

Power Metal also holds a material investment in Kavango Resources plc with
exploration updates available through their regulatory announcements and on
their website:

 

www.kavangoresources.com (http://www.kavangoresources.com)

 

 Project                Location   Current          Work Completed or Underway                                                     Results Awaited

                                   POW %

 Alamo Gold Project     USA        Earn-in to 75%   Technical reports received following excavation of multiple test pits and      Analysis of technical reports and potential follow-on work programme under
                                                    mapping & sampling completed.                                                  review.
 Athabasca Uranium      Canada     100%             Hyperspectral data analysis conducted across 7 properties. Updating to 7 data  Finalise review of hyperspectral data from 3 properties.  Prepare for summer
                                                    rooms for third party review.                                                  exploration programme across 4 properties.
 Authier North Lithium  Canada     Earn-in to 100%  Property Evaluation Report completed.                                          Update covering exploration plans for target areas identified during the
                                                                                                                                   Evaluation.
 Molopo Farms           Botswana   53%(#)           Comprehensive data review complete and establishment of data room for third    Finalise next exploration steps and action plan.
                                                    party review.
 Tati Project           Botswana   100%             Site visit with mapping of gold workings and mine dumps.                       Exploration planning underway including further mapping, sampling and launch
                                                                                                                                   of an RC drill programme.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme completed. Review of Ajax & Berringa mine              Final drill programme results analysis and resource potential analysis from
                                                    remaining resource potential.                                                  former high-grade producing mines in granted licences.

(#) subject to completion of acquisition announced 18.5.22 interest will
increase to 87.71%

 

 

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