Last checked at 28 May 2020 07:00
28 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 provide an update in respect of commercial discussions relating to the Haneti polymetallic project (the 'Project').
BACKGROUND:
On 15 March 2019 POW announced an Investment and Option Agreement whereby POW could acquire up to a 35% interest in the Project. This announcement may be viewed through the following link:
https://www.powermetalresources.com/n/n105/investment-and-joint-venture-agreement-katoro-gold-plc-haneti-nickel-project
After due diligence POW duly acquired a 25% interest in the Project on 15 May 2019 and held an option to acquire a further 10% through a payment to Katoro of £25,000 by 15 May 2020, with the option period subsequently extended to 31 May 2020 as announced on 15 May 2020.
In recent months Katoro has received approaches with a view to earn-in, joint venture or other similar structures in respect of the Project, with a primary focus on the nickel sulphide discovery potential.
It is apparent that to crystallise the interest shown into a potential commercial transaction, it is preferable, and possibly a requirement, for Katoro and POW to restructure ownership of the Project.
Katoro and POW will therefore continue to monitor the development of any potential commercial transaction(s) before any final agreement is agreed upon. In lieu of this, POW's option to increase its holding in the Project has been extended to 31 August 2020. This will allow both parties the benefit of further discussions and to carefully consider all available options based on additional information.
Paul Johnson, Chief Executive Officer of Power Metal Resources commented: "The Haneti Project is a significant opportunity, and it is important to structure ownership in a way that optimises the commercial pathway for the Project. I look forward to providing a further update to the market in due course."
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 |
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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.