12 March 2024
Power Metal Resources
PLC
("Power Metal" or the
"Company")
Power Arabia Limited ("Power Arabia")
Update
Power Metal Resources PLC
(AIM:POW), the London listed
exploration company with a global project portfolio,
is pleased to update shareholders on the progress being made
through its 100% owned subsidiary company, Power Arabia Ltd ("Power
Arabia").
Highlights:
·
Memorandum of Understanding ("MoU") signed with Ministry of
Investment of the Kingdom of Saudi Arabia ("MISA") at Future
Minerals Forum, as announced on 12 January 2024
·
Power Arabia has been established to encompass all of POW's
activities across the Arabian Gulf (the "region"). This could also
include projects outside the Gulf in joint venture with entities
domiciled within the region
·
Several binding MoUs for potential joint ventures on existing
exploration licences are currently in the final stage of
negotiation and, assuming execution of one or more of these,
initial groundwork is expected to commence in April, after Ramadan
and Eid al-Fitr.
·
Power Arabia is currently undergoing a pre-IPO financing
round to fund activities in the region with a view to a listing on
the London capital markets in due course
·
Conversations are progressing with investors, both from the
Gulf and internationally, who have indicated significant interest
in a regionally focused investment vehicle
Sean Wade, Chief Executive Officer of
Power Metal Resources plc, commented:
"I am very
pleased to update shareholders on the progress we are making in
this exciting part of our business. We have now made several trips
to the region and are establishing ourselves as a credible partner
for a number of existing licence holders. We are currently looking
at formal arrangements to acquire suitable exploration
opportunities with various separate entities, of which several are
currently close to execution. It is clear that our successful
incubator model has resonated with regional investors and we are
intending to shortly complete a financing round for Power Arabia
with a view to completing transactions in the region and getting
started on meaningful exploration work.
As has been
the case with previous portfolio transactions, POW is expected to
retain a significant shareholding in Power Arabia, giving our
shareholders substantial upside potential from discoveries, but
without diluting their shareholding in POW and asking them to fund
all of the exploration costs.
Whilst there
is never complete certainty of a successful outcome, of either the
pre-IPO financing or the listing of Power Arabia on the London
capital markets, we are very excited to bring this IPO to London
and strongly believe that our model will be successfully replicated
across the Arabian Gulf region and will deliver significant value
to shareholders."
For
further information please visit https://www.powermetalresources.com/
or
contact:
Power Metal Resources plc
|
|
Sean Wade (Chief Executive
Officer)
|
|
|
|
SP Angel Corporate Finance (Nomad
and Joint Broker)
|
|
Ewan Leggat/Caroline Rowe/Harry
Davies-Ball
|
+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
|
BlytheRay (PR Advisors)
|
+44 (0) 20 7138 3204
|
Tim Blythe
|
|
Megan Ray
|
|
NOTES TO EDITORS
Power Metal Resources plc - Background
Power Metal Resources plc (AIM:POW)
is an AIM listed metals exploration company which finances and
manages global resource projects.
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 grow the Company, or may be returned
to shareholders through share buy backs, dividends or in-specie
distributions of assets.