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30 Sep 2024 07:00
30 September 2024
Power Metal Resources plc
("Power Metal" or the "Company")
Update on Formation of Uranium-Focused Joint Venture
Acquisition of Drake Lake-Silas Uranium Project, Newfoundland & Labrador
Update on 2024 Fieldwork Programme
Power Metal Resources plc (AIM:POW, OTCQB:POWMF), the London-listed exploration company with a global project portfolio, is pleased to provide an update on the formation of a uranium-focused joint venture (the "Joint Venture") involving Power Metal's entire portfolio of uranium licences, with UCAM Ltd ("UCAM or the "Investor", together the "Parties").
The Company has been informed by the Investor that it is in the process of completing certain administrative tasks relating to the finalisation of the Joint Venture transaction, and expects to be in a position to enter into definitive documentation shortly. Given the advanced state of the transaction, the Company does not feel it is necessary to formally extend the period of exclusivity for the transaction, and currently expects to be able to inform shareholders imminently that the transaction has completed.
The Company also announces, that subject to the approval of its Nominated Adviser, it intends to extend the date of the Company's financial year end.
Separately, the Company is pleased to announce that it has acquired the Drake Lake-Silas uranium project ("Drake Lake-Silas" or the "Property"), within a prolific uranium district in Newfoundland and Labrador. The Property will be vended into the Joint Venture on completion of the transaction. A substantial fieldwork programme has already been undertaken in the current field season with further work planned for the current year.
Drake Lake-Silas is composed of two non-contiguous licences covering 1,250-hectares (12.5 kilometres squared ("km2")) and 500-hectares (5.0km2) respectively. The mapped geology is contiguous with a resource of 5 million pounds ("lbs") U3O8 indicated and 5.82 million lbs U3O-8 inferred1, and a vanadium resource of 15.81 million lbs inferred of V2O5, at 0.088% V2O5 within 1 kilometre ("km") of the Property's boundaries.
The Property hosts two known uranium occurrences, along trend of the identified off-Property resource; the two occurrences include up to 798 parts per million uranium in soil results and an intersection of 0.27% U3O8 over 0.20 metres ("m"). Further details will be provided regarding the geology of Drake Lake-Silas in due course.
Terms of the Acquisition
Power Metal will pay consideration of £500,000 through the issue of new ordinary shares of 2p each ("Ordinary Shares") in Power Metal at an issue price of 0.161292 p each, being the volume weighted average price ("VWAP") in the 30 trading days immediately prior to 19 September 2024. Accordingly, 3,099,968 new Ordinary Shares ("Consideration Shares") will be issued.
The vendors shall be entitled to dispose up to the vested portion of their Consideration Shares on or after each of the vested dates as set out in the table below:
Vested date | Vested portion (%) |
The date falling three calendar months after the date of Admission | 25 |
The date falling six calendar months after the date of Admission | 50 |
The date falling nine calendar months after the date of Admission | 75 |
The date falling twelve calendar months after the date of Admission | 100 |
Admission and Total Voting Rights
Application will be made for the 3,099,968 Consideration Shares to be admitted to trading on AIM which is expected to occur at 8.00 a.m. on or around 4 October 2024 ("Admission"). The Consideration 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 114,287,742 Ordinary Shares of 2p 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.
Update on 2024 Fieldwork Programme
Highlights
· Ground-based surveys have now been completed on seven properties including Perch River, Tait Hill, Reitenbach, Thibault Lake, Clearwater, E12 and Cook Lake (collectively the "Properties"), with multiple exploration methods, including soil, radon, helium and biogeochemistry (vegetation) sampling employed.
· The exploration work completed has been designed to test various prospective areas within the Properties, including radiometric and helium hyperspectral anomalies as well as prospective fault structures noted from prior work completed by Power Metal and historical operators.
· Two combined magnetic and radiometric surveys have been completed on Soaring Bay and Thibault Lake. Preliminary results are in hand, with post-survey processing ongoing.
· In early-mid September, Power Metal completed a phase 1 soil sampling campaign over a portion of Drake Lake-Silas, with results pending.
· Final preparations are underway for next stage electromagnetic ("EM") surveys which will be completed across Perch River, Badger Lake, East Hawkrock and West Hawkrock. It is anticipated that these surveys will commence in early October of this year.
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.
REFERENCES
1Morgan, J.A. and Giroux, G.H.2008: Form 43-101 Technical Report on The Central Mineral Belt (CMB) Uranium Project, Labrador, Canada.NI 43-101 Technical report
1 https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rd1n0pr
2 CanAlaska Uranium Ltd, 2008, Report on 2008 Exploration Programme - Grease River Property, Saskatchewan. (74O09-0024)
4 https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/wv4lmzw
4 Marline Oil Corporation, 1979, Property CBS 5333 Area 114, (64E11-0030)
5 https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/xen6pyx
For further information please visit https://www.powermetalresources.com/ or contact:
Power Metal Resources plc | |
Sean Wade (Chief Executive Officer) | +44 (0) 20 3778 1396 |
SP Angel Corporate Finance LLP (Nomad and Joint Broker) | |
Ewan Leggat/Caroline Rowe | +44 (0) 20 3470 0470 |
Tamesis Partners LLP (Joint Broker) | |
Richard Greenfield/Charlie Bendon | +44 (0) 20 3882 2868 |
BlytheRay (PR Advisors)Tim Blythe/Megan Ray
| +44 (0) 20 7138 3204
|
NOTES TO EDITORS
Power Metal Resources plc - Background
Power Metal Resources plc (AIM:POW, OTCQB:POWMF) is an AIM-traded 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, Saudi Arabia 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.
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