Power Metal Resources PLC - London-based metals exploration company focused in North America, Africa and Australia - Agrees to sell its 100%-owned Reitenbach uranium property, in the Athabasca Basin in northern Saskatchewan, Canada, to Teathers Financial PLC for GBP360,000 in new shares and GBP10,000 cash. Power Metal will receive 98.7 million shares at 0.35 pence each. Firm notes its subsidiary Power Sask will retain 2% a net smelter return royalty for the project. Says the subsidiary still holds 9 uranium properties after Reitenbach sale.
Says Teathers Financial is in "advance stages" of a business turnaround, hoping to become a uranium focused exploration company and also plans to list on the "London equity capital markets". Targetting IPO in third quarter of 2022.
Power Metal Chief Executive Paul Johnson says: "With the refocussing of Teathers into a uranium exploration vehicle with Reitenbach as their flagship property, we believe the proposition will attract pre-IPO and IPO financing interest, and trade successfully as a listed vehicle."
Firm expects to hold 40% to 55% of Teathers on listing.
Current stock price: 0.87 pence
12-month change: down 57%
By Paul McGowan; paulmcgowan@alliancenews.com
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Power Metal (POW)