Last checked at 15 May 2020 14:00
15 May 2020
Power Metal Resources plc ("POW" or the "Company")
HANETI POLYMETALLIC PROJECT - COMMERCIAL UPDATE
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update regarding commercial developments in respect of the Haneti polymetallic project (the 'Haneti Project').
BACKGROUND:
On 15 March 2019 POW (formerly African Battery Metals plc) announced an Investment and Option Agreement with Katoro Gold plc (LON:KAT) ("Katoro") whereby POW could acquire up to a 35% interest in the Haneti Project. This announcement may be viewed through the following link:
https://www.powermetalresources.com/n/n94/investment-and-option-agreement-with-katoro-gold-plc
After completing its due diligence, POW duly acquired a 25% interest in the Haneti Project on 15 May 2019 and held an option to acquire a further 10% interest in the Haneti Project through a payment to Katoro of £25,000 by 15 May 2020.
In recent months Katoro has received approaches from external third parties with a view to earn-in, joint venture or similar, in respect of the Haneti Project, with a primary focus on the nickel sulphide exploration potential.
Reflecting this, Katoro and POW have agreed an extension to the above 15 May 2020 deadline to 31 May 2020 to allow time to finalise restructuring discussions in respect of Haneti Project ownership.
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
"The Haneti Project is a substantial exploration project with multiple commodity targets across the land package and most notably the advanced nickel sulphide targets.
It is no surprise to see interest in the Project and it is very important for us to work with Katoro to ensure that the project ownership is appropriately structured.
I look forward to providing a further update to the market shortly."
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
For further information please visit https://www.powermetalresources.com/ or contact:
Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) | +44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat | +44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson | +44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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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 exploring for the key metals used in power generation, transmission, storage and utilisation. The Board and team of advisors, who have proven expertise in exploration, mining and project generation, have identified an opportunity to utilise the Company's position to become a leader in the London market for investors to gain exposure to the power metal commodity suite, particularly cobalt, lithium, copper and nickel.