REG - Power Metal Res. - Acquisition of Strategic Stake in Apex Royalties

Power Metal ResourcesAnnouncement

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RNS Number : 4668E  Power Metal Resources PLC  23 October 2025

23 October 2025

Power Metal Resources PLC

("Power Metal" or the "Company")

Acquisition of Strategic Stake in Apex Royalties Limited

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London listed
exploration company and project incubator with a global project portfolio, is
pleased to announce the signing of a binding subscription agreement (the
"Subscription Agreement") for an investment of £4 million in Apex Royalties
Limited ("Apex"), a private, high growth, diversified, mining royalty
company.

Apex was established in late 2024 and has since grown its portfolio to five
high quality royalty assets providing exposure to gold, tin, bauxite and
tungsten, as more fully described below. Apex is led by an experienced board
of directors with deep experience in the mining industry and, in particular,
in the royalty sector, with the board comprising former directors and founder
shareholders of Trident Royalties Plc ("Trident Royalties").

Pursuant to the Subscription Agreement, Power Metal is making an investment of
£4.0 million in cash (approximately US$5.3 million) into Apex, alongside
other investors, as part of a financing expected to raise gross proceeds in
excess of US$10.0 million (the "Apex Fundraising"), valuing Apex on a pre-new
money basis at approximately £24.0 million (approximately US$32.0 million).
The proceeds of the Apex Fundraising will be used to finance part of the
consideration for the acquisition of a royalty over the Pilot Mountain
tungsten project, complete an option payment on a royalty over the Wuudagu
Bauxite project, and provide additional working capital for future royalty
acquisitions.

 

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

"I am delighted to announce that Power Metal has secured a material position
as an early and significant investor in Apex, backing an experienced team with
a track record of success. Trident Royalties was successfully grown from
inception as a cash shell to a portfolio of 22 royalties prior to its
acquisition by Deterra Royalties Limited (ASX: DRR) for cash proceeds of £144
million, realising a significant return for investors.

Apex has delivered exceptional growth to date and has already secured a
high-quality portfolio of royalty assets. Power Metal shareholders will be
familiar with the Pilot Mountain and Tempiute tungsten assets, over which we
will now have exposure in the form of non-dilutive royalties as the assets are
advanced toward production. In addition, we will now have royalty exposure to
several other high-quality gold, tin and bauxite assets - all advanced
exploration projects that have potential for near to mid-term production and
meaningful cash flow for Apex.

Our investment, alongside other investors, will provide significant additional
capital to enable Apex to achieve critical mass. This stage of a royalty
company's life cycle tends to deliver strong returns for investors, and we
look forward to participating as major shareholders in Apex's growth
trajectory.

Our expertise in project incubation and our recent crystallisation success
works in synergy with Apex's business model. This exposure to Apex's portfolio
will allow Power Metal to benefit from prospective assets without carrying the
risk or financial requirements. Adding this investment into our existing
portfolio of joint ventures, exploration assets, and the Minestarters
platform, places Power Metal in a unique position to generate growth from a
diversified portfolio that covers a range of jurisdictions and commodities."

 

The Apex Portfolio

Following completion of the Apex Fundraising and the pending acquisition of
the Pilot Mountain royalty and exercise of the residual Wuudagu Bauxite
option, Apex will have a portfolio of five royalties over high-quality mining
projects, providing exposure to gold, tin, bauxite and tungsten, with its
portfolio heavily weighted towards OECD jurisdictions:

-      A 1.0%(1) gross revenue royalty ("GRR") over the Whale Cove Gold
Project located in Nunavut, Canada and operated by BG Gold Capital II Corp
("BG Gold"). The Whale Cove project encompasses a large, highly prospective
841km(2) land package where BG Gold is currently advancing studies on a
conceptual large, open pit gold operation at the flagship Vickers deposit.
The Vickers deposit benefits from a high grade 2.4 million ounce gold 43-101
compliant Mineral Resource comprising: Measured & Indicated: 1.53 million
ounces at 2.0 grammes per tonne ("g/t") gold; and Inferred: 0.91 million
ounces at 1.77g/t gold.  Apex's royalty covers all of BG Gold's existing land
package, providing significant geological upside;

 

-      A 1.2% GRR over the Achmmach Tin Project ("Achmmach") located in
Morocco and operated by Xingye Silver & Tin (China's second largest
producer of tin) following its recent acquisition of 75% of Achmmach through
the takeover of Atlantic Tin Limited ("Atlantic Tin").  Atlantic Tin's most
recent development plan for Achmmach envisaged a 17 year mine life producing
3.7k tonnes per annum ("tpa") of tin (life of mine average) at first quartile
operating costs and with capital costs of US$47 million(2). Achmmach is
underpinned by a large, high grade JORC compliant Mineral Resource of 39.1
million tonnes ("mt") at 0.55% tin and benefits from a highly prospective land
position, covered by Apex's royalty;

 

-      A 1.0% GRR(3) over the Wuudagu Bauxite Project ("Wuudagu") located
in Western Australia and operated by VBX Limited ("VBX"), an ASX listed
company.  VBX is currently completing a feasibility study that builds on the
positive outcome of a 2024 pre-feasibility study which envisaged 3.5mtpa of
high quality, low silica bauxite (comparable to premium Guinean products) over
a ten-year life with first quartile operating costs and low capital costs of
A$125 million.  Wuudagu has a JORC Ore Reserve of 59mt and with only 48% of
tenements drilled, there is potential for a larger Mineral Resource;

 

-      A 1.5%(4) net smelter royalty over the Tempiute Tungsten Project
and a 2% GRR over the Pilot Mountain Tungsten Project, both located in Nevada,
US, and operated by Guardian Metal Resources Plc ("GMET") as its co-flagship
projects.

 

o  The Tempiute/Emerson mine was previously one of the largest tungsten mines
in the USA until the Chinese flood of tungsten supply in the 1980s. The
Tempiute project draws on the historic high-grade resource, significant
in-place operational infrastructure, as well as substantial resource upside
from an under-explored land position that has been materially expanded since
GMET optioned the project. All of these leases are covered by Apex's royalty;

o  The Pilot Mountain tungsten project is considered to be one of the largest
undeveloped tungsten projects in the USA and is currently undertaking a
pre-feasibility study that includes a drilling campaign to increase the
existing Mineral Resource of 12.5mt at 0.27% WO(3).  The Pilot Mountain
tenement package is considered highly prospective with the potential for both
an increase in scale, as well as potential co-products such as silver, copper
and zinc. Earlier in 2025, GMET was awarded a US$6.2 million US Department of
Defense grant to progress Pilot Mountain towards construction.

( )

(1) Assuming the exercise of an option to purchase an additional 0.25% GRR

(2) Per Atlantic Tin scoping study published 2024

(3) Once a payment of USD3.5m is made following the close of the Apex
Fundraising

(4) Subject to a 0.75% buy-back right

(5) Unless otherwise stated, in this announcement an exchange rate of GBP1 =
1.335 has been used

 

AIM Rule 12 disclosure

Apex has not yet filed its first set of statutory accounts and therefore there
are no disclosures to be made under Schedule 4c of the AIM Rules for
Companies.

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
 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)                                                         +44 (0) 20 7138 3204

 Tim Blythe/Alastair Roberts

 

NOTES TO EDITORS

Power Metal Resources plc - Background

Power Metal Resources plc (AIM:POW, OTCQB:POWMF) is a London-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, Saudi Arabia 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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