TIDMPOW
RNS Number : 5623S
Power Metal Resources PLC
10 March 2023
10 March 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
Strategic Update and Director Changes
Power Metal Resources PLC (LON:POW), the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces a strategic business update
providing the latest position of the Company and its forward
objectives, together with director changes to lead Power Metal into
the next stage of its business development.
STRATEGIC BACKGROUND
Company Historical Strategy
-- Power Metal has undergone rapid growth over the past four
years. The scale of the Company's acquisition, exploration and
corporate development activities over recent years positions the
Company very well to generate significant value at this point in
the cycle.
-- From an initial concentration on west and central Africa in
2019 the Company now has direct and indirect exposure to strategic
resource exploration projects in secure jurisdictions in North
America, Africa and Australia, across a commodity suite with metals
that are demonstrating increasingly critical global demand.
-- The work to build the Company has been carefully completed to
a high standard and during a highly volatile period for the junior
resource sector. That time has been used to accumulate and advance
interests whilst valuations in the sector have been modest and in
readiness for stronger conditions during a junior resource sector
recovery, as we have seen many times in previous cycles.
Building a Strong Management and Operational Team
-- Power Metal has built a strong UK based corporate team who
are managing the key areas of geology, company management, finance,
compliance and communications. The Company also works with
established and capable UK advisors and also in-country teams to
conduct project-based operations in the various jurisdictions in
which it operates.
-- Together, the team have created a professional and
disciplined operational core to oversee the Company's global
interests, and to manage the extensive field operations and
corporate activities completed and underway.
-- By necessity and to further build the momentum of the Company
with wider and impactful strategic partnerships, certain Board and
senior management changes are to be implemented as outlined
below.
Focus of Operational Activities and Strategic Partnerships
-- Power Metal will apply greater focus to its operational
activities, seeking the efficient completion of spin-out IPOs and
project disposals and concentrate exploration on strategically
important retained projects. This increased focused is expected to
more rapidly build value for shareholders.
-- The size and scale of the Power Metal business means it is
ready for partnerships at project and corporate level with larger
mining companies and internationally significant sector funds and
institutions.
FOCUSING POWER METAL
An overview is provided on the status of all Power Metal project
interests and vehicles later in this report. It is important to
recognise the Company's strategic interests include but are not
limited to:
Creating a Substantial Uranium Business
The Company is to build a greater focus on its strategic uranium
business and seeks to become the leading uranium exploration and
development company in London.
-- The initial focus is the Company's 100% interest in a
967km(2) uranium project footprint in the Athabasca Basin area of
Saskatchewan, Canada, over 16 properties (2 properties under
disposal agreements).
-- Power Metal is looking to efficiently complete project
staking and acquisition of uranium properties in the Athabasca
Basin region to add to its existing portfolio and to secure high
impact uranium opportunities globally should they meet the
Company's exacting investment criteria.
-- Power Metal will also complete, communicate and implement
plans for extensive exploration across retained uranium properties
in 2023.
Uncovering District Scale Nickel and Gold Systems in
Botswana
The Company will seek to expedite the release of results for
priority exploration projects already underway and focus on rapid
advancement of strategic Botswana interests. These include:
-- 87.71% interest in the district scale Molopo Farms Complex
Project in Botswana, with a 2,402m diamond drill programme
completed, with geological feeder zone model confirmed and nickel
sulphides already confirmed, two significant elements from
exploration drilling undertaken, combined with historical work,
with assay results awaited.
-- 100% interest in the Tati Project in Botswana with an 8km
long gold-in-soil anomaly, where reverse circulation drilling in
2022 confirmed up to 47.1g/t gold in a one metre composite sample
with extensive follow-on exploration currently underway, and the
first stage of field work (geophysics and trenching) now completed,
with geophysical interpretation and assay results awaited.
Driving Planned IPO Vehicles Forward
The planned IPOs have taken longer than originally anticipated.
There are reasons behind this including the extensive preparatory
work in the pre-IPO process, the need to complete work in all
vehicles to enable immediate and proactive exploration campaigns
upon listing. Also proper recognition of market conditions during
2022 is a factor, a year which saw a severe decline in investor
sentiment in the junior resource sector, with few IPOs occurring in
the sector generally.
Preparations for the first three IPO vehicles (see below) are
now essentially complete and the vehicles ready for listing have
fully prepared proactive exploration plans in place. We also
believe there is increased investor engagement and interest in 2023
generally and we are seeking to complete all transactions as
quickly as possible and are taking all necessary steps to
accomplish this.
Therefore, the focus commercially is to accelerate completion of
all remaining disposals and spin-out IPO-listings for all relevant
projects and vehicles. These include but are not limited to the
following vehicles in which Power Metal has a strategic
interest:
-- Power Metal holds an 83.13% interest in Golden Metal
Resources PLC ("GMR") which through local subsidiaries holds the
Pilot Mountain project containing the largest known critical
tungsten metal mineral resource estimate in the USA and Golconda
Summit a gold exploration target for a Carlin-style gold discovery.
GMR is undertaking a planned listing in London, has completed the
pre-IPO preparations and the IPO financing is underway.
-- Power Metal holds a 58.59% interest in First Development
Resources PLC ("FDR") which through local subsidiaries holds the
Wallal Project hosting drill ready magnetic bullseye targets,
demonstrating geophysical similarities to the recent Havieron
discovery made by Greatland Gold PLC and a large rare earths,
uranium and lithium project 65km north west of the Nolans rare
earths project held by Arafura Rare Earths Ltd. FDR is undertaking
a planned listing in London, has almost entirely completed the
pre-IPO preparations and the IPO financing is expected to commence
shortly.
-- Power Metal has agreed the disposal of two uranium properties
in the Athabasca Basin to Teathers Financial PLC which is to be
renamed Uranium Energy Exploration PLC ("UEE"). The disposals are
conditional on the successful listing of UEE in London creating a
new uranium exploration focused company holding the Reitenbach and
E-12 properties (Power Metal expects to hold 50-55% of UEE on
listing). The pre-IPO preparations are complete and the IPO
financing is expected to commence shortly.
-- Power Metal holds 49.9% of a joint venture company New
Ballarat Gold Corporation PLC ("NBGC") which holds, through its
local subsidiary, a large footprint of granted exploration ground
in the Victoria Goldfields of Australia including two former
high-grade working mines and where recent drilling (at Berringa)
has confirmed visible gold in the core of the first three holes
drilled, assays awaited. The intention of the JV partners is for
NBGC to undertake a planned listing, with the technical results
including assay of the current drill programme forming part of the
technical data presented as part of that listing exercise.
DIRECTOR CHANGES
The entire Power Metal team have worked relentlessly to build
the Company to its current strong position in the junior resource
environment.
The next steps taken by the Power Metal group are key to the
delivery of value to shareholders and the whole team. Specifically,
board leadership of Power Metal Resources PLC with its retained
interests needs to be optimised to meet the opportunities available
to the Company.
When considering the Power Metal Board, consideration must
always be given to the suitability, availability and capability to
commit the time and energy required by the Company in the next
stage of growth.
Reflecting this, certain Board changes are now being implemented
for reasons outlined in further detail below.
Sean Wade is to become an Executive Board Director and Chief
Executive Officer with immediate effect and is charged with driving
Power Metal to the next stage in its corporate growth as outlined
in the "Focusing Power Metal" section above.
Sean is an experienced corporate executive within the natural
resource sector, having held senior roles in mining companies
including Berkeley Energia PLC, Pensana PLC and Asia Resource
Minerals PLC. He has worked on numerous transactions in the capital
markets, including IPO's, secondary capital raising and M&A in
a wide variety of different jurisdictions and exchanges. His
extensive network covers numerous capital providers, including
institutional funds, family offices and private wealth.
Sean started his career at Cazenove & Co in 1993. In 2007 he
was a founding shareholder in Liberum Capital. Since 2012, he has
worked in corporate business development and investor relations. He
founded Scout Advisory Limited in 2020 undertaking consultancy work
with various listed and private companies in the resource
exploration mining sector.
His connections with internationally recognised mining companies
and investment institutions will enable the Company to develop
corporate and financial partnerships necessary to grow the
business. We believe this network will also help accelerate and
cement the disposal pathways for certain interests further
enhancing the Company's financial strength.
As a result of and to focus on certain critical family health
matters Paul Johnson is to step down as Chief Executive Officer
with immediate effect and from the Board on 17 March 2023.
After stepping down Paul will continue working with the Company
and the corporate team on the managerial transition, continuing
communication strategies and notably to accelerate the work behind
crystallisation of value from the Company's interests. This will
include anticipated completion of disposal transactions and ongoing
support for spin-out listings and disposals, where applicable.
Scott Richardson Brown is to assume the role of permanent
Non-executive Chairman. This reflects Scott's service continuity as
interim Non-executive Chairman since October 2021, and the
leadership of the Board and the Company over that time.
Following completion of the above changes on 17 March 2023 the
Board will comprise:
Scott Richardson Brown - Non-executive Chairman
Sean Wade - Chief Executive Officer
Ed Shaw - Non-executive Director
Owain Morton - Non-executive Director
The Company is also planning to appoint a Finance Director
reflecting the expansion of business activities going forward, a
Technical Director and an additional Non-executive Director to
complete the Board build-out at this time.
Scott Richardson Brown, Non-executive Chairman commented: "I
want to welcome Sean to the Power Metal Board and as Chief
Executive Officer. His extensive relevant experience and
connectivity across the resource industry will be a major asset to
the Company as we move to the next important stage of business
growth.
I am aware of the immense commitment Paul has made over four
years building Power Metal to the business it is today and the
opportunity that presents for shareholders in the Company. I also
understand and support Paul's decision to step down from the Board
to enable him to deal with significant personal challenges.
I think it is important to have Paul continuing to work with
Power Metal in the key areas of transition, communications strategy
and value crystallisation from the portfolio, something he has been
instrumental in creating."
Paul Johnson Chief Executive Officer commented: "It has been a
privilege to bring Power Metal forward over the last four years, to
the point where it is now a global business with a portfolio of
strategic project interests, in optimal jurisdictions and
positioned especially well in the junior resource sector. I look
forward to remaining involved with the Company, and its commercial
work.
As the largest shareholder and taking an objective view, this
managerial transition is the right step now for Power Metal to
reach its fullest potential. I will take great pride in watching
Power Metal, as I expect, take its rightful place amongst the
leaders in this sector."
Sean Wade, incoming Chief Executive Officer commented: "I am
very pleased to be appointed as CEO to lead Power Metal. In my
view, the Company has an excellent resource asset set that is yet
to be recognised by the wider market and thus fairly reflected in
the market capitalisation of the Company.
The exciting challenge of unlocking this inherent value will be
addressed in part by the completion of the disposal transactions
and focusing our business operations on advancing the key
exploration interests in Africa, potentially with strategic
partners. In addition, and notably, there has been particular
interest in a well-planned, well communicated and well executed
expansion of the Company's uranium exploration activities.
I firmly believe that Power Metal is in a great position to
advance its projects and continue to gain recognition in the wider
mining community and with recognised sector focused investors."
ALL COMPANY INTERESTS IN OVERVIEW
Project/Vehicle Description Areas of Focus
Athabasca Uranium
Saskatchewan, Power Metal currently * Additional staking planned
Canada holds 16 uranium
(Uranium) prospective
POW 100% properties covering * Next step exploration planning
967km(2)
within and surrounding
the prolific Athabasca * Project partner discussions
Basin, including
property
acquisitions and
self-staked
ground. Two properties
are in the vend process
(see UEE section below).
-------------------------- ----------------------------------------------------------------
Molopo Farms Power Metal holds 87.71%
Complex Project of Kalahari Key Mineral * Release of technical review including drill assay
Botswana Exploration Pty Limited results
(Nickel - Copper ("KKME") which holds 100%
- Platinum Group of the Molopo Farms
Element) Complex * Next step exploration planning
POW: 87.71% Project ("MFC Project").
A 2,402m diamond drill
programme was undertaken * Furthering potential project joint venture partner
in late 2022/early 2023 discussions with third parties.
with five holes over four
target geophysical
anomalies
completed.
Work completed to date
has crucially confirmed
the geological feeder
zone model and
demonstrated
multiple examples of the
targeted nickel sulphides
from assay results from
the previous drill
programme
and visual core
inspection
from the current drill
programme where assays
are awaited.
-------------------------- ----------------------------------------------------------------
Tati Project
Botswana The Tati Project is * Trenching sampling results
(Gold - Nickel) centred
POW: 100% on an 8km gold-in-soil
anomaly (the "Anomaly"), * Geophysics results
including the former
working
Cherished Hope Gold * RC & Diamond drilling to be undertaken
Mine.
Reverse circulation * Furthering discussions with partners for the
("RC") processing of fines dumps.
drilling completed in
2022 delivered high and
bonanza grade gold
results
including 47.1g/t gold
in a one metre composite
sample.
The Company believes
there
is potential for a very
large gold deposit over
the Anomaly and has
already
commenced an extensive
2023 work programme
including
trenching, sampling,
geophysics
RC and diamond drilling.
-------------------------- ----------------------------------------------------------------
New Ballarat Power Metal holds 49.9%
Gold Corporation of NBGC held in Joint * Drill programme completion
PLC (NBCG) Venture ("JV") with Red
Victoria, Australia Rock Resources PLC
(Gold) (LON:RRR * Drill assay results
POW: 49.9% - 50.1%) which through
an Australian operating
subsidiary, Red Rock * Next step exploration planning
Australasia
Pty Ltd, has a wholly
owned and substantial * Update on IPO of NBGC
licence footprint within
the Victoria Goldfields,
Australia, which is
comprised
of 17 granted exploration
licences covering
1,867km(2)
and 2 licence
applications
covering 467km(2)
including
two former high-grade
working mines (Ajax and
Berringa) where our
technical
team believe a
considerable,
and potentially
high-grade,
gold endowment remains.
1,000m diamond drill
programme
underway at Berringa.
-------------------------- ----------------------------------------------------------------
Golden Metal GMT holds four projects
Resources PLC centred on Nevada USA, * IPO financing update
(GMT) including the earn-in
Nevada, USA to a 100% interest in
Gold - Base Metals the Golconda Summit * Listing in London
POW 83.13% Project
targeting a large
Carlin-type
gold deposit.
In addition GMT holds
a 100% interest Pilot
Mountain Project, which
holds a 12.3mt Mineral
Resource Estimate ("MRE")
at 0.27% tungsten
trioxide
(WO(3) ) along with
substantial
silver, copper and zinc
credits.
-------------------------- ----------------------------------------------------------------
First Development FDR holds three projects
Resources PLC in Western Australia * IPO financing update
(FDR) including
Western Australia Ripon Hills, Braeside
/Northern Territory West and Wallal Project * Listing in London
(Gold - Copper targeting precious and
- Rare Earth Elements base metals. Wallal
- Uranium - Lithium) Project
POW: 58.59% includes the Eastern
magnetic
bullseye anomaly which
is in a drill ready
state,
targeting an undercover
large copper-gold
discovery.
In addition FDR holds
the Selta Project in the
Northern Territory which
covers approximately
1,600km(2)
and is prospective for
rare earth elements,
uranium
and lithium.
-------------------------- ----------------------------------------------------------------
New Horizon Metals In December 2022 the
Australia Company * C ommercial pathway to be confirmed
(Gold, Copper, announced the merger of
Uranium, IOCG) its 100% owned Wilan
POW: 20% Project
(previous name Gawler
Project) in South
Australia
with copper and gold
exploration
projects in Queensland.
T he new holding vehicle,
New Horizon Resources
Pty Ltd ("New Horizon")
is currently planning
to list on a recognised
stock exchange in the
UK or Australia. Interest
has however been shown
by existing listed
Canadian
and Australian companies
for outright acquisition
of New Horizon, and New
Horizon is working with
various parties in this
regard.
-------------------------- ----------------------------------------------------------------
ION Battery Resources ION holds three project
Ltd (ION) interests including an * C ommercial pathway to be confirmed
Canada earn in to a 100%
(Lithium and Graphite) interest
POW 100% in the Authier North
Lithium
Project in Quebec, a 100%
interest in the North
Wind Lithium Project in
Ontario and a 100%
interest
in the Doerksen Bay
Graphite
Project in Saskatchewan.
It is expected that ION
will be the subject of
an outright disposal into
an existing listed
company
or will pursue its own
IPO listing.
-------------------------- ----------------------------------------------------------------
Uranium Energy
Exploration PLC In 2022 Power metal * IPO listing update
("UEE") announced
Canada the conditional disposal
(Uranium) of two uranium
POW circa 50-55% properties
on vehicle listing in the Athabasca Basin
& disposal completion region to Teathers
Financial
PLC (to be renamed
Uranium
Energy Exploration PLC)
which is to list in the
London capital markets.
Work is continuing on
this planned listing and
further updates will be
provided in due course.
-------------------------- ----------------------------------------------------------------
Haneti Project
Tanzania Power Metal is in * Project exploration and/or commercial pathway to be
(Polymetallic) discussions confirmed
POW: 35% with joint venture
partner
Katoro Gold (LON:KAT -
65%) to determine the
future of the Haneti
Project.
The Company remains of
the view that Haneti
offers
considerable potential,
with a commitment to
proactive
and methodical
exploration.
-------------------------- ----------------------------------------------------------------
Silver Peak Project
British Columbia, Power Metal's * Commercial pathway to be confirmed.
Canada exploration
(Silver) work at Silver Peak
POW: 30% undertaken
in 2020 and 2021, and
a follow up site visit
in 2022 confirmed high
and bonanza grade silver
at the Silver Peak
Project,
where former high-grade
silver mining was
undertaken.
The Company believes
there
is potential for a
considerable
remaining silver
endowment
and that Silver Peak is
a valuable asset.
-------------------------- ----------------------------------------------------------------
REGULATORY DISCLOSURES
The following information is disclosed pursuant to Rule 17 and
Schedule Two paragraph (g) of the AIM Rules for Companies in
relation to Sean Edward Wade, aged 52:
Current directorships and/or Former directorships and/or
partnerships: partnerships (within the last
five years):
Teathers Financial PLC Scout IR Limited
Uranium Energy Exploration Ltd Scout Advisory Limited
Keysford Limited
S&K Wade Properties Limited
102156730 Saskatchewan Limited
-------------------------------
Mr Wade does not hold any shares in Power Metal.
Mr Wade has confirmed there is no further information to be
disclosed pursuant to paragraph (g) of Schedule 2 of the AIM
rules.
As part of Mr Wades' employment contract Mr Wade will be issued
with Power Metal share options, namely, 12,500,000 options to
subscribe for new Power Metal ordinary shares of 0.1p each at an
exercise price of 3.25 pence with a life to expiry of 3 years from
today (the "Director Options"). The Director Options are subject to
a minimum service period of 6 months and may not be exercised until
the volume weighted average price of Power Metal shares trades at
5.0 pence for ten consecutive trading days.
PDMR DISCLOSURE
The notifications below, made in accordance with the
requirements of the EU Market Abuse Regulation, provide further
detail on the director's share dealing.
Details of the person discharging managerial responsibilities
1 / person closely associated
a) Name
Sean Edward Wade
-------------------------------------- ------------------------------------------
Reason for the notification
2
----------------------------------------------------------------------------------
a) Position/status
Chief Executive Officer
-------------------------------------- ------------------------------------------
b) Initial notification
/Amendment Initial Notification
-------------------------------------- ------------------------------------------
Details of the issuer, emission allowance market participant,
3 auction platform, auctioneer or auction monitor
----------------------------------------------------------------------------------
a) Name
Power Metal Resources Plc
-------------------------------------- ------------------------------------------
b) LEI
213800VNXOUPHTX53686
-------------------------------------- ------------------------------------------
Details of the transaction(s): section to be repeated for
4 (i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions have
been conducted
----------------------------------------------------------------------------------
a) Description of the financial ordinary shares of 0.1p each
instrument, type of
instrument
Identification code ISIN: GB00BYWJZ743
b) Nature of the transaction
Issue of Options
-------------------------------------- ------------------------------------------
c) Price(s) and volume(s)
------------------ -------------------
Price(s) Volume(s)
------------------ -------------------
3.25p 12,500,000
------------------ -------------------
d) Aggregated information
- Aggregated volume 12,500,000
- Price 3.25p
e) Date of the transaction 10March 2023
-------------------------------------- ------------------------------------------
f) Place of the transaction Off Market
-------------------------------------- ------------------------------------------
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.
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END
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