Last checked at 6 Nov 2023 07:00
6 November 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
Disposal of Kavango Resources Shares for Cash
Power Metal Resources PLC (AIM:POW), the AIM listed metals exploration and development company announces the disposal of its entire holding of 69,500,000 shares of Kavango Resources plc ("Kavango") at a price of 0.8p per share raising cash of £556,000 for the Company.
Power Metal retains 60,000,000 warrants to subscribe for new Kavango shares with 30,000,000 warrants at an exercise price of 4.25p and 30,000,000 warrants at an exercise price of 5.5p, both with an expiry date of 8 January 2025.
In addition, Power Metal holds a 1% net smelter return royalty ("NSR") in respect of the project licence footprint in the Kalahari Copper Belt and Ditau Camp projects previously held in joint venture with Kavango.
Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented:
"I am pleased to announce this disposal bringing an additional £556,000 cash into the Company which will be deployed into the Company's high impact exploration initiatives.
"Whilst we would describe our holding in Kavango as non-core our disposal does not reflect any negative view of their business or their ambitions and we wish them well in their endeavours.
"Our priority however is deploying financial resources into Power Metal core projects whilst also streamlining the diverse interests of the Company and demonstrating our ability to raise cash for operations through means other than equity financings which dilute investor holdings.
"The funds raised will add to our significant existing cash balances and will be utilised for accelerated exploration, including drilling of certain high impact retained exploration projects targeting large-scale metal discoveries. Further information to follow in respect of specific exploration programmes."
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 | ||
Sean Wade (Chief Executive Officer) |
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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 |
BlytheRay (PR Advisors) | +44 (0) 20 7138 3204 |
Tim Blythe |
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Megan Ray |
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NOTES TO EDITORS
Power Metal Resources plc - Background
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects.
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 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 grow the Company, or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.