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From Thor Mining's 01-Nov-2021 RNS about the sale (subsequently revised to delete the tail payment)
"HIGHLIGHTS
§ Power Metal Resources Plc and its wholly owned subsidiary Golden Metal Resources Ltd ("Golden Metal") have exercised their option (the "Option") to acquire a 100% interest in Pilot Mountain.
§ Power Metal will pay US$115,000 in cash to Thor Mining and US$1,650,000 payable through the issue to Thor of 48,118,920 Ordinary Shares at an issue price of 2.5 pence per share ("Initial Consideration Shares").
§ In addition, Power Metal will issue to Thor 12.5 million warrants to subscribe for Ordinary Shares with an exercise price of 4p per Ordinary Share and life to expiry of 3 years.
§ Furthermore, a US$500,000 milestone payment will become payable in Ordinary Shares, if Golden Metal publishes a JORC or 43-101 compliant resource at Pilot Mountain which increases against current declared levels by 25% across total indicated and inferred categories within two years.
§ Proceeds from the sale will be directed towards further exploration activities at the Company's copper and gold projects - Alford East, SA and Ragged Range, WA."
Looks free and clear, as far as I can tell, vis a vis the original vendor to POW, which was Thor (THR.L)
Now that would be nice, are there any milestone payments to the original vendors of Pilot Mountain? No problem if there are due to obvious success if hit but just curious and cannot recall seeing any?
I did say "hope" not expectation! Best wishes, Don.
Ha ha I think it’s time you woke up from that beautiful slumber DyOy
My hope is to prove up Pilot Mountain, flog it, become cash rich, distribute 90% of the sale money to shareholders and use 10% of the cash to prove up Garfield.
Garfield may well need further exploration before drilling, it is at an earlier stage than Pilot Mountain, keep it burning for a second project when the times right
@Butler - yes good point. I guess it'll all unfold over the next couple of months.
I too am disappointed that Garfield isn’t in the current drill plan. But could the reason be that in order to put out the contract for PM drilling, and secure a time slot, proof of funds would be needed (from the raise)., but drilling won’t start for several months. So if Gov funding arrives before drilling starts, is there anything that prevents GMET from using the Gov funds to pay for drilling, and diverting the funds from the raise to Garfield? By doing this they would maintain the current drilling schedule and avoid several months delay in placing the drilling contract whilst waiting for Gov funding?
@ICB - US Grant delayed - well it probably isn't because let's face it it comes. It comes regardless whether the punters think it's due in Q1 (ends next week) or not. SO perhaps delayed compared to twitterers...you can see who they are.
I could be wrong - if I am great, I'm positioned to take advantage of it, if I'm not and there's a pullback, great I'll take advantage of that too.
SO WHY do I think it may not be imminently on the horizon - given the grant funding from the DoD or whomever will have to be earmarked solely for PM then why expend the funds you've raised privately now on PM? It means there is much less to devote to other projects in Nevada (we all wanna see that Garfield bullseye target drilled), and now more funds will have to be privately raised to do that - but maybe that's already on the cards and we can expect an RNS (?)
It's all probabilities and for me the probability that we won't see a grant in Q1, possibly even Q2 was raised today given the RNS.
Also I found it strange OF wasn't all over YouTube today like he normally is - hmm...
Still love the company, just putting an hypothesis out there for discussion..by all means take 'issue' with it, but it's not worth being dramatic over, just discuss the argument.
Couldn't agree more ICB. Todays rns was really a follow on from the last one with a bit more detail around what was previously said on PM. Absolutely nothing suggesting any issue with the grant apication process, that's purely speculation and shouldn't be discussed as if its suddenly fact.
The one line Oliver keeps repeating is 'look at the data points, they all point towards GMET being a great candidate for grant funding' . Not word for word quote but very much the general message we repeatedly hear so personally I'm not at all concerned in that direction.
I take issue with the 2 posters who are trying to suggest that the receipt of the US Government grant is delayed or in doubt. There is absolutely nothing in today’s RNS to give any credence to that suggestion. The CEO’s comment is very positive and strong news flow should be expected:
“ Oliver Friesen, CEO of Golden Metal, commented:
"Since Golden Metal's admission to AIM in May 2023 we have put many important building blocks in place across our exciting Nevada focussed portfolio. With many of these important steps now completed, we move into what I believe will be a potentially transformational period for the Company. This will involve undertaking high impact drilling and project development studies aimed at unlocking significant value at Pilot Mountain in tandem with further exploration across multiple other Golden Metal assets.
"The need for the USA to reshore its critical, battery and defence metal supply chains is approaching all-time highs, and the Company is perfectly positioned to be part of the solution. I encourage everyone to watch Golden Metal closely as we enter what should be a very exciting news-rich period."
Read the last sentence carefully.
Author Interview: Looking at the Impact of the Critical Minerals, in Nevada and Beyond
An interview with Ernest Scheyder, author of The War Below: Lithium, Copper and the Global Battle to Power our Lives
https://sierranevadaally.org/2024/03/18/author-interview-looking-at-the-impact-of-the-critical-minerals-in-nevada-and-beyond/
If that’s the case the OF needs to lure in another half a dozen or so HNIs at about £500k each @ the same price as the recent one.
I don’t know anything about the technical side of this stuff but if the kind of geophysical tests carried out by GMET are the same as POW’s then we’re looking at lots of maps coloured in but without much in the way of highly scientific data. Ie it’s really similar to Molopo Farms. Brightly coloured maps RNSd followed by interviews from PJ mentioning ‘transformational’ repeatedly and even embarrassingly describing a conversation with his young son asking him ‘daddy, are we rich?’. One of the worst things I’ve ever seen on AIM from an acting CEO and as you can imagine that’s up amongst some fairly strong competition! I liked PJ but that wasn’t one of his greatest moments. Let’s hope OF can keep things technical and lure some wealthy individuals in very soon.
One thing occurs - I wonder if they've had some feedback from the DoD, indicating they'd like to see some more drill results/analysis before they make a decision on the grant.
@roger - in truth I can't vehemently disagree with your points. Even though I topped-up last week, on a just-in-case basis, I was beginning to feel this was all getting a little 'hyped' on platforms like Twitter with the likes of the TMS crowd and to be fair even OF himself.
The other thing that struck was that the RNSs started to feel a little like POW when PJ was incharge - RNS every thought 'n action, I know some holders like that but it does feel a bit pumpy to me.
Conclusions -
> US grant not in the foreseeable future
> Drilling can't start anyway until permits granted - probably looking at MAY earliest for that to happen, so drilling then depends on availability of crew & rig
> Drill results possibly not then until end of summer earliest
- so why the RNS now? hmm...
Warrant exercise will raise some more funds but we're basically looking at another raise probably in the autumn to progress other projects, e.g., Garfield.
Let's hear what OF has to say, I'm sure he'll spend most of the day on the market podcast websites.
I still haven't sold anything but yes I too expect a pullback as the market digests this, not a collapse.
Certainly feels as if GMET are going to have to get this next stage of drilling going under their own steam financially speaking. So, with no Grants forthcoming I think this RNS has been released to try and create some excitement and increase the mcap. Trouble is, all these similar companies do the same and the market knows they’re basically going to be needing lots of funding very soon. Without a Grant from the USGovt to show signs of long term support it’s a minnow with no income and relies purely on equity raised and more dilution. Same old, same old I’m afraid. I now see this dropping back to 10p- 12p for the next few months and obviously lower once they go for more dilution.
Disappointing in some ways. Great to be reaching the drilling stage but they definitely can’t afford more than a one off drill atm so this is now very risky. Reminds me of Molopo for POW, and look how that turned out.
I’ve lost count of the number of times I’ve heard AIM CEOs use the term ‘transformational’… I hope just for once this is a company that can deliver something really meaningful.
HMM - not sure what to make out of this RNS. It appears to be saying that the recent private raise is being devoted to further exploration on pilot mountain(once permits are granted - targeted end of April).
Does that mean that they don't now foresee a US grant? Or at least don't expect it within the next few months?
I'm pretty upset none of these monies are being applied to Garfield given they've identified the bullseye target.
Probably only 10-15% of the stock max not in solid hands. Any good news and this thing just takes off.
I got a couple more tranches today too and earlier this week in both my SIPP and ISA, news feels imminent to me and I think the days of sub 20p are numbered. Hope I'm right!!
Have a great weekend all!
Well, I managed to pick up another 100k at about 0830hrs this morning - though it wasn't reported for hours later. Didn't particularly want to Top-up at these levels but that strategic raise and potential upcoming announcements seem to be deterring investors from selling.
That's because this has to be one of the most tightly held AIM shares - there's so little free float it's amazing, and I imagine the MMs got too exposed selling uncovered when it was down in the 10-11p range that they are now much more conscious of needing to run a balanced book. When something comes along to cause interest in buying GMET shares in any volume, it will just have to go into auction and goodness only knows how high it will gone on the day - they certainly won't be getting my few hundred thousand shares below 50p.
I tell you one thing, bizarrely, it was much easier to pick up decent chunks of shares when this thing was below 10p than it is now.
Techno. Correct. This smart sticky strategic money which is backing a handful of mining companies with scalable opportunitiee in critical minerals. It's easy to join up the dots. POW, KAV and GMET are all winners over the next 3-5 years
Hello all. Just reading up on this company after their rns today. The recent comments are talking about a US investor but I dont think that is correct. Unless I am reading wrong this is the same investor (seriously rich investor) that has a major share of KAV and also a stake in POW. As to drilling the CEO of this company has said on Twitter (x) today that this money allows them to drill and I have not fully got my head around their projects and cash position before this raise but you can do a fair bit of drilling if you have several hundred thousand to throw at it (obviously subject to target depth).