Power Metal Regulatory News (POW)

5 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Financing Raising £800,000

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces it has completed a placing to raise £800,000 before expenses. (the "Financing").

HIGHLIGHTS

§ Power Metal has raised £800,000 before expenses for the advancement of select priority exploration projects and for general working capital purposes with the Financing undertaken at the closing market bid price of 1.4 pence on 2 September 2022 (see below for detailed Financing terms).

§ The funds raised will support the acceleration, and allow for the potential expansion, of the ongoing geophysics and upcoming drill programme at the Molopo Farms Complex Project ("Molopo" or the "Project") located in Botswana, where drilling is scheduled to commence mid-September targeting a large-scale nickel sulphide discovery.

§ The Financing also enables the potential expansion of other priority exploration activities.

Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented: 

"Our work at the Molopo Farms Project in Botswana continues to support the potential for a nickel sulphide discovery in what is a unique district scale land package where we will be diamond drilling not only one electromagnetic ("EM") conductor, but multiple conductors located across a large Project footprint.

At Molopo we have accelerated planned drilling with the final preparations underway and drilling is expected to commence mid-September. 

Considering the scale of the conductors identified, especially that at priority target area T1-6, and the number of conductors being targeted it was clear that we needed to be prepared for the possibility of an expanded campaign at the Project and we have undertaken the Financing to position for that expansion.

In addition, the Financing supports the continuation of our aggressive exploration across other priority exploration interests, where we are starting to see some highly encouraging findings."

FINANCING FURTHER INFORMATION

§ The Company has raised £800,000 before expenses through the issue of 57,142,857 new ordinary shares of 0.1p each in the Company (the "Financing Shares") at an issue price of 1.4p per share, the closing market bid price on 2 September 2022.

§ Each Financing Share has an attaching warrant to subscribe for one new ordinary share of 0.1p each ("Ordinary Share") at an exercise price of 2.0p with a 12-month term from 19 September 2022 ("Financing Warrant") creating 57,142,857 Financing Warrants.

§ Should the Power Metal share price exceed a volume weighted average share price of 10p for five trading days Power Metal may issue a written notice to Financing Warrant holders providing ten trading days to exercise the Financing Warrants and ten further trading days to make payment of exercise monies or the Financing Warrants may be cancelled.

§ The Financing was undertaken by the Company's joint broker First Equity Limited. Power Metal has issued First Equity Limited with 5,714,286 warrants to subscribe for new Ordinary Shares on the same terms as the Financing Warrants.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 57,142,857 Financing Shares to be admitted to trading on AIM which is expected to occur on or around 19 September 2022 ("Admission"). The Financing Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

Following Admission, the Company's issued share capital will comprise 1,594,654,921 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

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:

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.

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

Exploration work programmes may also be underway within Power Metal investee companies and planned IPO vehicles where Power Metal has a material interest, the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required. These interests are summarised in the table below: