REG - Power Metal Res. - Proposed Investment in Minestarters

Power Metal ResourcesAnnouncement

04/09/2025 07:00

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RNS Number : 9306X  Power Metal Resources PLC  04 September 2025

4(th) September 2025

Power Metal Resources PLC

("Power Metal" or the "Company")

Proposed Investment in Minestarters

Institutional-Grade Blockchain DeFi Platform Bringing Real-World Asset
Tokenisation to Mining Exploration

Power Metal Resources PLC (AIM: POW, OTCQB: POWMF), the London-listed
natural resources exploration company and project incubator with a global
project portfolio, is pleased to announce the signing of a binding Investment
Agreement to acquire up to 49 per cent of Kingia FZCO ("Kingia"),  a company
incorporated as a Freezone Company in Dubai through a proposed investment of
up to £3 million in cash. Kingia will be renamed Minestarters in due course.

Minestarters proposes to establish an institutional-grade, blockchain-enabled
Decentralised Finance ("DeFi") Tokenisation Platform which will offer
compliant, liquid, and diversified investment into early-stage mining
ventures. Minestarters will issue tokens as soon as practicable.

Minestarters tokens will give investors access to a curated portfolio of
global exploration and development projects. As these projects advance, the
Minestarters platform aims to capture and distribute their real-world value
growth, simultaneously benefitting investors whilst directing essential
funding to a pipeline of highly prospective mining assets. This provides
global investors with direct, liquid exposure to an asset class that has
traditionally been difficult for retail investors to access, and for
institutions to access efficiently.

Power Metal has acquired an initial 35 per cent in Minestarters for a £1
million share subscription in cash, with an option to increase its holding to
up to 49 per cent for a further £2 million share subscription in cash,
subject to milestone delivery. These milestones will include, but are not
limited to, the on-boarding of suitable mining partners and a listing of the
Minestarters tokens on a suitable token exchange.

The real-world-asset ("RWA") tokenisation market has grown from US$8.6 billion
at the start of 2025, to over US$25 billion by mid-year - a 260 per cent
growth rate in just six months. Led by tokenised private credit (US$14.9
billion) and tokenisation of U.S. Treasuries (US$7.5 billion), institutional
adoption has accelerated, with BlackRock's BUIDL fund alone currently having
US$2.4 billion in assets under management. Standard Chartered predicts the
market could reach US$30 trillion by 2034, while Boston Consulting Group has
forecast US$16 trillion by 2030. Power Metal, through Minestarters' early
entry into this underserved mining segment, will gain significant first-mover
advantage in a sector where tokenised assets have grown 380 per cent over
three years and is now in a position to reshape mining finance.

Highlights:

·    Transforming Mining Finance

Minestarters plans to be the first DeFi platform to offer investors regulated,
compliant and transparent access to mineral exploration and development
through the US$25 billion - and growing - RWA tokenisation market. As well as
the ability to invest in the portfolio, the platform will offer automated
benefit sharing, 24/7 liquidity and project transparency.

 

·    Bridging the Early-Stage Funding Gap

Over US$200 billion is invested in the mining sector each year, yet less than
two per cent reaches early-stage exploration - the phase with potentially the
greatest returns on investment. Minestarters aims to channel at least one per
cent of this total market - more than US$2 billion - through its
blockchain-enabled platform, rapidly matching vetted projects with global
capital.

 

·    A New Hybrid DeFi Asset Class

Minestarters aims to combine blockchain liquidity with tangible mining project
assets to create an innovative DeFi offering that delivers tech-sector NAV
growth potential backed by real-world collateral. This unique positioning is
built to attract crossover capital - from commodity specialists seeking
diversification to DeFi investors seeking real-world yield.

 

·    Institutional-Retail Synergy

Minestarters will target two capital sources: institutions seeking exposure to
critical minerals and retail investors previously shut out of early-stage
mining projects. This blended investor base is expected to deepen liquidity,
letting the platform finance more projects and deliver a broader, de-risked
portfolio for all token-holders.

 

·    Driven by expertise and experience

Minestarters was founded and is chaired by Marcel Nally, a geologist with over
30 years' experience in mining and mineral exploration in worldwide
jurisdictions. Among other successful projects, Marcel co-founded Moxico
Resources plc, which operates a copper mine in Zambia.

 

Ian Freeman, CEO of Minestarters, has a record of steering technology ventures
from launch to commercial success whilst navigating complex, highly regulated
environments. The leadership team's complementary skill set positions
Minestarters to evaluate promising mining projects while executing the
regulatory, technological, and commercial strategies needed to bring these
assets to investors on an institutional-grade blockchain platform.

 

·      Robust Governance and ESG Transparency

The Minestarters token will be governed by strict regulatory protocols. Smart
contracts will account for the obligations and financing structure of each
respective project, intended to create a level of capital discipline that does
not exist in traditional early-stage mining project finance. Concurrently,
Minestarters' ESG-compliant blockchain infrastructure will provide
transparent environmental tracking, automated compliance reporting, and
immutable audit trails - addressing institutional demand for verifiable
sustainability credentials.

 

·    Scalable, Compliance-Ready Infrastructure

To be built for rapid expansion, Minestarters plans to have the capacity to
onboard dozens of projects each year across multiple jurisdictions.
Smart-contract automation, ESG-tracking modules and multilingual investor
dashboards will keep operations efficient and in full compliance as the
platform moves into global jurisdictions.

 

·      Expanding Investment Opportunities

Beyond early-stage and development funding, the Minestarters platform intends
to support tokenised royalties, streaming rights, off-take partnerships and
equity-convertible instruments, giving investors access to a range of
structured exposures - historically reserved for institutions. As Minestarters
evolves into a comprehensive DeFi powered capital markets platform for mining
finance, it plans to capture value across the entire project lifecycle, from
exploration through production and exit events, establishing itself as the
Web3 infrastructure backbone for global mining project finance capital. Over
time, this should position Minestarters not just as a funding solution, but as
a go-to marketplace for tokenised mining assets worldwide.

 

·    Partner of choice

The mutually-beneficial partnership between Minestarters and Power Metal is
highly advantageous for the growth of the Minestarters platform, with Power
Metal's proven track record of generating value through crystallisation, and a
distinct synergy in the business models of both companies, forged around the
shared idea of project incubation. Together, Minestarters and Power Metal can
accelerate the transition of mining finance into the blockchain era while
maximising value capture across both portfolios.

 

Sean Wade, Chief Executive Officer of Power Metal Resources PLC commented:

"I am excited to announce this transformative investment for Power Metal,
stepping into the new mainstream for mining finance. With first-mover
advantage in a US$200+ billion annual market, this partnership has the
potential to scale rapidly and reshape the sector. We are confident that this
investment will provide greater opportunities for existing shareholders and
potential token-holders to share in our crystallisation success, whilst giving
us exposure to a more extensive pipeline of prospective assets than available
through traditional financing methods.

"Energy-transition metals are in high demand and investors are actively
seeking credible, ESG-aligned projects with clear development pathways, yet
early-stage projects continue to struggle to raise risk capital, creating a
roadblock for the supply of the materials essential to decarbonisation
efforts.

"Minestarters addresses these problems with a forward-thinking, innovative
approach, harnessing blockchain technology to pool global investors into a
single, compliant vehicle that funds and delivers upside from multiple
exploration and development assets, identified by well-renowned industry
experts. A strong pipeline of projects is already under review for onboarding
to Minestarters, ensuring early momentum post-launch. This extremely exciting
partnership facilitates a progressive incubation process and positions Power
Metal at the forefront of real-world-asset finance, adding several potential
revenue streams and delivering new value for shareholders.

"This isn't just about early-stage funding. Minestarters opens the door to a
range of tokenised mining exposures, from royalties and streaming agreements
to equity-backed tokens and milestone-triggered rewards - something the
industry has never had before.

"Our proven track record of crystallisation success and synergy with
Minestarters' incubation approach will serve us well as we jointly progress
this exciting new venture. I look forward to communicating how we see this
investment enhancing our existing business model through the inclusion of an
exciting Web3 fintech-enabled mining innovator."

Please follow the link here
(https://www.powermetalresources.com/investor-centre/presentation-minestarters/)
to a presentation explaining the model in more detail.

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via a Regulatory Information Service, this inside information is
now considered to be in the public domain.For further information please
visit https://www.powermetalresources.com/
(https://www.powermetalresources.com/)  or contact:

 Power Metal Resources plc
 Sean Wade (Chief Executive Officer)                      +44 (0) 20 3778 1396

 SP Angel Corporate Finance LLP (Nomad and Joint Broker)
 Ewan Leggat/Jen Clarke                                   +44 (0) 20 3470 0470

 Tamesis Partners LLP (Joint Broker)
 Richard Greenfield/Charlie Bendon                        +44 (0) 20 3882 2868

 BlytheRay (PR Advisors)
 Tim Blythe/Alastair Roberts                              +44 (0) 20 7138 3204
                                                          powermetalresources@blytheray.com

NOTES TO EDITORS

Power Metal Resources plc (AIM: POW, OTCQB: POWMF) is a London-listed
natural resources exploration company and project incubator 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, Saudi
Arabia, Oman 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.

 

 

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