(Alliance News) - Power Metal Resources PLC on Tuesday said it raised GBP2.7 million via a placing of its shares.
The metals exploration company, focused on North America, Africa and Australia, said it raised the gross proceeds via placing 319.4 million new shares at a price of 0.85 pence per share.
Shares in Power Metal were up 4.2% to 0.86p each in London on Tuesday afternoon.
Each placing share has an attaching warrant to subscribe for one new share each at an exercise price of 2p with a five-year term expiring May 9, 2028.
Chief Executive Officer Sean Wade will subscribe to 11.8 million placing shares, Power Metal said.
As part of the placing, Power Metals has also entered into a subscription agreement with Term Oil Inc for the latter to participate in the placing for up to GBP1 million and no less than GBP500,000.
Power Metal said the net proceeds of the placing will be used to further the Company's exploration activities and for general working capital purposes.
"I am very pleased to be able to announce this capital raise and to reassure shareholders that we are now in a sustainable position to advance our exploration activities, most particularly in respect to our uranium portfolio," said Power Metal CEO Wade.
"Moreover, I am delighted to welcome Rick Rule's Term Oil vehicle to the register and the new shareholders who are joining us with his endorsement. This is not only a strong validation of our business model but also puts us on a sound footing to continue to deliver our goal of unlocking the significant inherent value in our portfolio."
By Greg Rosenvinge, Alliance News reporter
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Power Metal (POW)