REG - Power Metal - Uranium Business Update and Togo Agreement

Power Metal ResourcesAnnouncement

22/06/2022 15:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220622:nRSV8450Pa&default-theme=true

RNS Number : 8450P  Power Metal Resources PLC  22 June 2022

22 June 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Uranium Business Update and Togo Agreement

 

Power Metal Resources plc (LON:POW), the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces a business update covering the Company's global uranium interests.

Togo Agreement

·    Power Metal has signed an agreement with David Knopf, a consulting
geologist governing the evaluation, acquisition and exploration of uranium
prospects in Togo, West Africa (the "Agreement").

·    Power Metal is to establish a wholly-owned operating subsidiary in
Togo, to act as a holding company for Togo uranium interests ("Togo
Subsidiary").

·    Upon successful transfer of newly acquired interests into the Togo
Subsidiary, Power Metal will pay agreed finder's fees to Mr Knopf equating to
€27,000 in total for the first acquisition and €15,000 for any subsequent
acquisitions (finders fees will be payable in part cash and part Power Metal
shares based on the volume weighted average price of Power Metal shares in the
ten working days prior to each acquisition).

·    In addition, should Power Metal or the Togo Subsidiary announce a
Decision to Mine ("DTM") in respect of any project acquired under the
Agreement, further fees would be payable of €100,000 in cash and €200,000
in Power Metal shares (Power Metal Shares based on the volume weighted average
price of Power Metal shares in the ten working days prior to each DTM).

·    Power Metal will have access to the services of Mr Knopf as well as
his Togo based business partner who is an established senior geologist with
strong capabilitities in-country who will assist with the organisation and
management of local geological operations.

·    Existing project targets have been established and the Company is
working with the team in Togo to plan next stages of exploration as well as to
secure new opportunities as soon as possible.

Athabasca Basin, Saskatchewan, Canada

Power Metal, through its wholly-owned local subsidiary, holds a large
strategic footprint in the Athabasca Basin area with 7 properties covering a
combined area of 450.01km(2). The Company's in-house uranium specialist has
completed a data compilation exercise across all 7 properties, the results of
which have previously been announced to the market.  Shareholders wishing to
see an overview of the findings from each property are invited to visit the
Company's website where individual uranium project factsheets have been
uploaded:

https://www.powermetalresources.com/fact-sheets/
(https://www.powermetalresources.com/fact-sheets/)

The Power Metal team are currently finalising next stage exploration plans at
our 7 Athabasca properties and a further update will be provided covering this
in due course.

The Company commissioned a National Instrument 43-101 technical report
("Report") in respect of the Reitenbach Property as announced in March 2022:

https://www.londonstockexchange.com/news-article/POW/uranium-portfolio-update-athabasca-basin-canada/15381520
(https://www.londonstockexchange.com/news-article/POW/uranium-portfolio-update-athabasca-basin-canada/15381520)

Power Metal expects to release the findings from this report in the near term.

Further information from the data compilation completed over the Reitenbach
Property was announced by the Company in February 2022 and may be viewed
through the following link:

https://www.londonstockexchange.com/news-article/POW/reitenbach-uranium-property-athabasca-basin/15319141
(https://www.londonstockexchange.com/news-article/POW/reitenbach-uranium-property-athabasca-basin/15319141)

Selta Project, Northern Territory, Australia

The Selta Project ("Selta") was acquired in November 2021 by Power Metal UK
subsidiary First Development Resources Limited through the acquisition of
Australian private holding company URE Metals Pty Limited.

In February 2022 an in-depth review ("Review") of the rare-earth element and
uranium potential at the Selta Project was undertaken:

https://www.londonstockexchange.com/news-article/POW/selta-project-update/15328364
(https://www.londonstockexchange.com/news-article/POW/selta-project-update/15328364)

The Review confirmed multiple uranium targets at Selta, further details of
which were announced in March 2022 and may be viewed in the link below:

https://www.londonstockexchange.com/news-article/POW/selta-project-multiple-target-areas-identified/15371081
(https://www.londonstockexchange.com/news-article/POW/selta-project-multiple-target-areas-identified/15371081)

Further work is underway to evaluate the findings of the review and determine
the next stages for uranium focused exploration.

Paul Johnson, Chief Executive Officer of Power Metal commented:

"This Agreement announced today securing Power Metal a pathway into Togolese
uranium opportunities marks our first entry into African uranium
exploration.  We are already working with the Togo team in respect of
sourcing new uranium opportunities and I expect to report back soon on
developments there.

The Togo opportunity complements the Company's existing uranium interests
including the large 7 property portfolio in the Athabasca Basin area of
Saskatchewan, Canada, and the Selta Project, forming part of planned listing
vehicle First Development Resources Limited.

At Power Metal we see an opportunity to further build our uranium profile.
This will be accomplished by undergoing exploration on our existing
exploration portfolio, the acquisition of additional interests, as well as
through investment holdings in new uranium focused entities that we can help
to create."

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.

 

Power Metal Exploration Programmes Underway/Results Awaited

Power Metal has exploration programmes completed or underway, with results
awaited, as outlined below:

 

 Project                Location   Current          Work Completed or Underway                                                    Results Awaited

                                   POW %

 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 all Properties complete. Next steps upcoming.
 Authier North Lithium  Canada     Earn-in to 100%  Soil & rock sampling completed                                                Technical Review of exploration results & define next exploration steps.
 Ditau Project          Botswana   50%              Drill programme focused on key targets notably drilling of potential          Field updates and receipt & review of laboratory assay results.
                                                    carbonatites and targeting rare-earth elements
 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%(#)           Review of recent exploration findings.                                        Determine next exploration steps and action plan.
 Victoria Goldfields    Australia  49.9%            Diamond drill programme completed.                                            Field updates and receipt & review of laboratory assay results.

 Paterson Projects      Australia  82.78%(*)        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.

 Selta Project          Australia  82.78%(*)        Lithium review underway including desktop and field mapping and sampling.     Findings from lithium review exploration programme.

(*)( )reducing to 62.12% after completion of the Pre-IPO Financing

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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDSEMFLEEESESM