REG - Power Metal - Warrant Update

Power Metal ResourcesAnnouncement

24/10/2022 13:00

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RNS Number : 9037D  Power Metal Resources PLC  24 October 2022

 

24 October 2022

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

Insider Warrant Update

 

Power Metal Resources plc (LON:POW) the London listed exploration company
seeking large-scale metal discoveries across its global project portfolio
announces a warrant update.

The Company would refer readers to its announcement of 21 July 2022 wherein
warrants to subscribe for new ordinary shares of 0.1p in Power Metal at an
exercise price of 0.75p per share ("Insider Warrants"), held by Company
directors, could not be exercised at the original expiry date of 20 July 2022
("July 2020 Warrants").

The Insider Warrants were issued to directors following their participation in
a Company financing in July 2020.

The Insider Warrants are held by Paul Johnson, Chief Executive Officer of the
Company and Ed Shaw, Non- executive Director (together the "Directors") as
follows:

 Warrant Holder  Number of Warrants  Exercise Price

 Paul Johnson    20,000,000          0.75p
 Ed Shaw         7,500,000           0.75p

 

Current Status of the Insider Warrants

Within the 21 July 2022 announcement the Company committed to update
shareholders as to Insider Warrant status after 3 months.

The Insider Warrants remain valid as the Directors remain unable to exercise
at this time due to ongoing proactive exploration and corporate activities.

This activity includes, but is not limited to:

Ongoing developments at the Company's priority exploration projects including:

-     the current diamond drill programme underway at the Molopo Farms
Complex in Botswana, and

-     recently conducted exploration programmes at the Tati gold project
in Botswana and the Athabasca uranium interests in Saskatchewan, Canada.

Extensive corporate transactional work including:

-     planned spin-out IPOs and disposal activities, and

-     the review of next steps on four project interests (Authier North,
Haneti, Silver Peak, & Wilan projects).

Under the July 2020 Warrant instrument Clause 2.3 provides that should any
July 2020 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.

It is the Directors intention to exercise the warrants as soon as they are
free to do so however given the level of activity within the Company this may
not be possible for some time.

The Insider Warrants remain available to exercise under Clause 2.3 however the
Company has extended the expiry date on the Insider Warrants to 21 April 2023
to reflect the limitations on exercise as described above.

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 and Owain Morton being the independent Directors 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 Insider Warrant expiry
date to 21 April 2023 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 - 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  c.53%(#)  T1-6 conductor target drilling underway and MLEM surveys over T1-6, T1-14,     Drill programme updates and findings from further MLEM survey work.
                                        T1-3 and T2-3 completed. Further MLEM surveys planned over additional AEM
                                        targets identified.
 Tati Project       Botswana  100%      RC drilling and sampling of mine dumps complete.                               Review of mine dumps sampling and assay results from RC drill programme.

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

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
 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
 Kavango Resources PLC            Investment - POW 14.03% (subject to completion of Kanye Resources disposal  www.kavangoresources.com (http://www.kavangoresources.com)
                                  announced 8.7.22 and issue of Kavango shares e.g. financing announced

                                  24.10.22)

                                  Exploration in Botswana
 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 40-55%                               www.uraniumenergyexploration.com (http://www.uraniumenergyexploration.com)

                                  Uranium exploration in the Athabasca region of Canada

 

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