Last checked at 21 Mar 2022 14:00
21 March 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Kalahari Key Botswana - Kavango Update
Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, notes the announcement made today by Kavango Resources plc ("Kavango") with regard to its proposed acquisition of the majority of Kalahari Key Mineral Exploration Pty Limited ("Kalahari Key").
An extract from the Kavango announcement is provided below:
"Further to the announcement on 02 March 2022, Kavango Resources plc (LSE:KAV) announces it proposes to make an offer to acquire 100 per cent of the issued share capital of Kalahari Key Mineral Exploration Proprietary Ltd ("KKME") (the "Provisional Offer").
KKME has a 60% effective economic interest in the Molopo Farms Nickel Exploration Project, Botswana.
The Provisional Offer will replace the proposed deal terms outlined in the Work Programme Option announcement (announced 26 November 2021).
Subject to the Provisional Offer being accepted by the holders of at least 90 per cent of the shares in KKME, Kavango will publish a detailed exploration plan on Molopo Farms, potentially including immediate diamond core drilling.
Further announcements will be made in due course."
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
"As previously stated Power Metal is supportive of Kavango's interest in Kalahari Key and remains so today. The Molopo Farms Complex Project has been notably successful, with nickel discovered in the first drill programme and it is time to get on with the job of exploration to take this project forward.
To be clear, whilst selling Power Metal's shares in Kalahari Key should the above offer proceed, Power Metal would retain its separate 40% interest in the Molopo Farms Complex Project."
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 - Background
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.
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 drive the Company's growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.
Power Metal Exploration Programmes Underway/Results Awaited
Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:
Project | Location | POW % | Work Completed or Underway | Results Awaited |
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Alamo Gold Project | USA | Earn-in to 75% | Excavation of multiple test pits and mapping & sampling. | Field and assay results from on-site work programme. |
Athabasca Uranium | Canada | 100% | Data compilation across uranium properties | Interpretation results from 5 of 7 properties. |
Authier North Lithium | Canada | Earn-in to 100% | Soil & rock sampling completed | Interpretation of laboratory assay results of samples collected defining next exploration steps. |
Ditau Project | Botswana | 50% | Preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare-earth elements and base metals
| Field programme findings and defined drill targets for near term drilling. |
Kalahari Copper Belt | Botswana | 50% | Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas | Field programme findings and defined drill targets for near term drilling. |
Molopo Farms | Botswana | 53%A | Kavango Option to acquire an interest in local project holding company. Option fee payable through defined work programme | Results from various work activities underway as part of the Kavango Option. |
Tati Gold/Nickel | Botswana | 100% | Reverse circulation drill programme completed | Laboratory assay results awaited. |
Haneti Project | Tanzania | 35% | Diamond drill programme completed | Laboratory assay results awaited. |
Victoria Goldfields | Australia | 49.9% | Diamond drill programme underway
| Field updates and Laboratory assay results awaited. |
Paterson Projects | Australia | 83.33% | Wallal passive seismic and 2D seismic processing work programme completed. Review of historical data and target generation for Ripon Hills & Braeside West projects
| Findings from multiple work programmes including final approvals and preparations for planned deep diamond drilling. |
A should Kavango exercise their option to acquire Kalahari Key, Power Metal interest would reduce to 40% of the Molopo Farms Complex project