Last checked at 24 May 2021 15:47
24 May 2021
Power Metal Resources plc
("Power Metal" or the "Company")
Conditional Australia Copper-Gold Acquisition - Update
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide an update regarding the Conditional Australia Copper - Gold Acquisition (the "Transaction") announced on 28 April 2021 and which may be viewed in the following link:
https://www.londonstockexchange.com/news-article/POW/conditional-australia-copper-gold-acquisition/14955517
The Transaction includes the acquisition of a 100% interest in First Development Resources Pty Limited, an Australian private company ("FDR Australia"), to include FDR Australia's five exploration licence interests (four licence applications and one granted exploration licence).
The vendors include shareholders of FDR Australia and various third parties with interests in the exploration properties (the "Vendors").
As part of the Transaction FDR Australia is to be acquired outright by a new UK private company ("FDR UK"), in which Power Metal is to hold a 75% initial interest and the Vendors a 25% initial interest.
The acquisition of FDR Australia will not be undertaken until the Ripon Hills Project has been successfully transferred into FDR Australia and a granted exploration licence has been received by FDR Australia in respect of the Wallal Project. Further announcements will be made by the Company as appropriate.
Transaction Progress
Power Metal and the Vendors are making good progress with the work to finalise the Transaction, including to secure the remaining four licence grants, prepare for accelerated ground exploration programmes and to pursue a planned listing of FDR UK.
Power Metal is working with the Vendors to identify the most expeditious route to complete the Transaction and to then implement the planned listing of FDR UK on the UK capital markets.
FDR UK has now been established with the formation of First Development Resources Ltd, a new UK company.
Confirmation has been received that given the size and nature of the Transaction approval is not required from the Foreign Investment Review Board, Australia, and may thus proceed without seeking formal approval.
Work is being undertaken to finalise Heritage Agreements in respect of the Wallal Project (E45/5816 - Licence Application) and, subject to a successful outcome, this is expected to be one of the final steps prior to receipt of a granted licence for the Wallal Project.
The Power Metal exploration team has been engaging with the Vendors and their advisors to undertake planning for exploration work across the Ripon Hills Project (E45/5088 - Granted Exploration Licence) and, subject to the grant of an exploration licence, the Wallal Project. This included liaising with the in-country geological and geophysical consulting firm Resource Potentials which conducted a detailed desktop study on behalf of the Company.
The results of this study saw the collection, analysis and interpretation of several geophysical datasets including airborne magnetics, ground gravity, 2D seismic, and airborne EM over the Property.
Following full analysis of these datasets and subject to licence grant, the Company in conjunction with Resource Potentials will plan and execute on a Phase I work programme which may include additional geophysical surveys as well as a deep drilling program targeting two coincident kilometre-scale magnetic, EM and gravity high bullseye anomalies located near the edge of the Wallal Platform.
CHIEF EXECUTIVE OFFICER STATEMENT
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
"Good progress is being made with the FDR Australia acquisition work, in terms of general administration matters and also, importantly, in exploration planning. It is evident from our initial work that there are large exploration targets in the Transaction licence areas and we are keen to move ahead with ground exploration.
"The work also continues to pursue a potential listing for FDR UK following the planned acquisition of FDR Australia. There is a lot of activity underway and therefore I expect further updates to the market in due course."
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/ or contact:
Power Metal Resources plc | |
Paul Johnson (Chief Executive Officer) | +44 (0) 7766 465 617 |
SP Angel Corporate Finance (Nomad and Joint Broker) | |
Ewan Leggat/Charlie Bouverat | +44 (0) 20 3470 0470 |
SI Capital Limited (Joint Broker) | |
Nick Emerson | +44 (0) 1483 413 500 |
First Equity Limited (Joint Broker) | |
David Cockbill/Jason Robertson | +44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale discovery of precious or base metals.
The Company has a global portfolio of project interests including precious and base metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company's position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.