REG - Power Metal - Warrant Update and Extension of Insider Warrants

Power Metal ResourcesAnnouncement

17/12/2021 11:10

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RNS Number : 0557W  Power Metal Resources PLC  17 December 2021

17 December 2021

Power Metal Resources PLC

("Power Metal" or the "Company")

Warrant Update and Extension of Insider Warrants

Power Metal Resources plc (LON:POW) the London listed exploration
company seeking large scale metal discoveries across its global project
portfolio announces an update in respect of Company share warrants.

 

Update Regarding Exercise of Warrants Expiring December 2021

On 17 December 2019 the Company issued warrants (the "December 2019 Warrants")
as part of a financing undertaken by the Company and as outlined below:

 Description         Number of Warrants  Exercise Price

 Financing Warrants  175,000,000         0.70p
 Advisor Warrants    17,500,000          0.70p

 

All December 2019 Warrants carried a two-year life to expiry which ends today,
17 December 2021.

Power Metal can confirm that, save for 11,250,000 December 2019 Warrants held
by current insiders, further details of which are provided below (the "Insider
Warrants"), all December 2019 Warrants have been exercised.

The Company will be providing a breakdown of all other outstanding warrants
and options in its upcoming quarterly report for the quarter ended 31 December
2021.

Warrant Exercise Proceeds and Working Capital Summary

In total the exercise of the December 2019 Warrants to date has raised an
additional £1.27 million for the Company and in total all warrant exercises
in 2020/2021 have raised circa £4.27 million.

This inflow of warrant monies enabled the Company to aggressively build its
business model in 2021 and secure the depth and quality of project interests.

Notwithstanding this heavily active phase in 2021 Power Metal has, at all
times, maintained a robust working capital position. Currently working
capital, defined for this purpose as only cash and listed investments, stands
at circa £3.06 million.

It is important to note that the above working capital figure excludes all
unlisted Power Metal assets, including corporate holdings and project level
investment holdings ("Unlisted Assets").  Included within Unlisted Assets are
the Company's pre-IPO interests in First Class Metals Ltd, Golden Metal
Resources Ltd, First Development Resources Ltd and New Ballarat Gold
Corporation PLC.

To assist shareholders' understanding of the financial position of the Company
a breakdown of all the Company's unaudited assets will be provided in the
quarterly report for the quarter ended 31 December 2021.

Extension of Insider Warrants

As at 17 December 2021 the following Insider Warrants remained outstanding:

 Warrant Holder  Number of Warrants  Exercise Price

 Paul Johnson    6,250,000           0.7p
 Ed Shaw         5,000,000           0.7p

 

The Insider warrants were issued following participation in the December 2019
financing.

The Company is currently managing numerous exploration programmes and
corporate activities across its portfolio and is engaged in various
discussions relating to existing or potential business interests with external
third parties.

As a result, the December 2019 Warrants held by Paul Johnson (Chief Executive
Officer of Power Metal) and Ed Shaw (Non-executive Director of Power Metal)
cannot be exercised on the expiry date of 17 December 2021 and may be extended
under the warrant instrument, as outlined below.

Under the December 2019 Warrant instrument clause 2.3 provides that should any
December 2019 Warrant holder be in the possession of price sensitive
information and be thereby precluded from exercising warrant subscription
rights, the exercise period shall be extended until 20 business days following
the date on which the Warrant holder ceases to be an insider.

Given the level of ongoing operational activity there is a material likelihood
that the receipt of price sensitive information could frequently restrict the
ability of Paul Johnson and Ed Shaw to exercise the December 2019 warrants.

Reflecting the above the Company has extended the Insider Warrants expiry date
by three months to a new expiry date of 17 March 2022.

Related Party Note

 

The extension of the Insider Warrants held by Paul Johnson and Ed Shaw as
outlined above, have been treated as related party transactions for the
purposes of AIM Rule 13.

Scott Richardson Brown being the independent Director for the purposes of the
extension of the expiry date of the Insider Warrants held by Paul Johnson and
Ed Shaw considers, having consulted with the Company's nominated adviser, SP
Angel, that the extension of the warrant expiry date to 17 March 2022 to such
related parties is fair and reasonable insofar as the Shareholders are
concerned.

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 results from on-site work programme.
 Athabasca Uranium           Canada     100%             Phase I field exploration completed                                           Laboratory assay results of samples collected for uranium and REEs
 Authier North Lithium       Canada     Earn-in to 100%  Soil & rock sampling completed                                                Laboratory assay results of samples collected
 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%              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
 Victoria Goldfields         Australia  49.9%            Ongoing exploration across 848km(2) of granted exploration licences           Results from field programme including drill programme underway

 Wallal Gold/Copper Project  Australia  83.33%(1)        Passive seismic and 2D seismic processing work programme completed            Results awaited

(1) assuming all licences held by URE Metals Pty Limited are granted as
outlined in the Company's announcement of 19.11.21 resulting in the issue of
First Development Resources Ltd shares to URE vendors.

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