Last checked at 22 Jun 2022 15:09
22 June 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Uranium Business Update and Togo Agreement
Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a business update covering the Company's global uranium interests.
Togo Agreement
· Power Metal has signed an agreement with David Knopf, a consulting geologist governing the evaluation, acquisition and exploration of uranium prospects in Togo, West Africa (the "Agreement").
· Power Metal is to establish a wholly-owned operating subsidiary in Togo, to act as a holding company for Togo uranium interests ("Togo Subsidiary").
· Upon successful transfer of newly acquired interests into the Togo Subsidiary, Power Metal will pay agreed finder's fees to Mr Knopf equating to €27,000 in total for the first acquisition and €15,000 for any subsequent acquisitions (finders fees will be payable in part cash and part Power Metal shares based on the volume weighted average price of Power Metal shares in the ten working days prior to each acquisition).
· In addition, should Power Metal or the Togo Subsidiary announce a Decision to Mine ("DTM") in respect of any project acquired under the Agreement, further fees would be payable of €100,000 in cash and €200,000 in Power Metal shares (Power Metal Shares based on the volume weighted average price of Power Metal shares in the ten working days prior to each DTM).
· Power Metal will have access to the services of Mr Knopf as well as his Togo based business partner who is an established senior geologist with strong capabilitities in-country who will assist with the organisation and management of local geological operations.
· Existing project targets have been established and the Company is working with the team in Togo to plan next stages of exploration as well as to secure new opportunities as soon as possible.
Athabasca Basin, Saskatchewan, Canada
Power Metal, through its wholly-owned local subsidiary, holds a large strategic footprint in the Athabasca Basin area with 7 properties covering a combined area of 450.01km2. The Company's in-house uranium specialist has completed a data compilation exercise across all 7 properties, the results of which have previously been announced to the market. Shareholders wishing to see an overview of the findings from each property are invited to visit the Company's website where individual uranium project factsheets have been uploaded:
https://www.powermetalresources.com/fact-sheets/
The Power Metal team are currently finalising next stage exploration plans at our 7 Athabasca properties and a further update will be provided covering this in due course.
The Company commissioned a National Instrument 43-101 technical report ("Report") in respect of the Reitenbach Property as announced in March 2022:
https://www.londonstockexchange.com/news-article/POW/uranium-portfolio-update-athabasca-basin-canada/15381520
Power Metal expects to release the findings from this report in the near term.
Further information from the data compilation completed over the Reitenbach Property was announced by the Company in February 2022 and may be viewed through the following link:
https://www.londonstockexchange.com/news-article/POW/reitenbach-uranium-property-athabasca-basin/15319141
Selta Project, Northern Territory, Australia
The Selta Project ("Selta") was acquired in November 2021 by Power Metal UK subsidiary First Development Resources Limited through the acquisition of Australian private holding company URE Metals Pty Limited.
In February 2022 an in-depth review ("Review") of the rare-earth element and uranium potential at the Selta Project was undertaken:
https://www.londonstockexchange.com/news-article/POW/selta-project-update/15328364
The Review confirmed multiple uranium targets at Selta, further details of which were announced in March 2022 and may be viewed in the link below:
https://www.londonstockexchange.com/news-article/POW/selta-project-multiple-target-areas-identified/15371081
Further work is underway to evaluate the findings of the review and determine the next stages for uranium focused exploration.
Paul Johnson, Chief Executive Officer of Power Metal commented:
"This Agreement announced today securing Power Metal a pathway into Togolese uranium opportunities marks our first entry into African uranium exploration. We are already working with the Togo team in respect of sourcing new uranium opportunities and I expect to report back soon on developments there.
The Togo opportunity complements the Company's existing uranium interests including the large 7 property portfolio in the Athabasca Basin area of Saskatchewan, Canada, and the Selta Project, forming part of planned listing vehicle First Development Resources Limited.
At Power Metal we see an opportunity to further build our uranium profile. This will be accomplished by undergoing exploration on our existing exploration portfolio, the acquisition of additional interests, as well as through investment holdings in new uranium focused entities that we can help to create."
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 | Current POW % | Work Completed or Underway | Results Awaited |
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 all Properties complete. Next steps upcoming. |
Authier North Lithium | Canada | Earn-in to 100% | Soil & rock sampling completed | Technical Review of exploration results & define next exploration steps. |
Ditau Project | Botswana | 50% | Drill programme focused on key targets notably drilling of potential carbonatites and targeting rare-earth elements | Field updates and receipt & review of laboratory assay results. |
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%# | Review of recent exploration findings. | Determine next exploration steps and action plan. |
Victoria Goldfields | Australia | 49.9% | Diamond drill programme completed.
| Field updates and receipt & review of laboratory assay results. |
Paterson Projects | Australia | 82.78%* | 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. |
Selta Project | Australia | 82.78%* | Lithium review underway including desktop and field mapping and sampling. | Findings from lithium review exploration programme. |
* reducing to 62.12% after completion of the Pre-IPO Financing
# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%