11 March 2024
Golden Metal Resources
plc
("Golden Metal" or the
"Company")
Golden Metal Strategic Raise
of £750,000 to Support Accelerated Exploration in Nevada
USA
Single Investor £750,000
Subscription at 15p per share
Golden Metal Resources plc (LON:GMET,
OTCQB:GMTLF), a mineral exploration
company focused on tungsten, lithium, gold, copper and silver
within Nevada, USA, is pleased to announce it has raised £750,000
through a direct subscription with the Company.
Subscription
Highlights:
- Golden Metal
has completed a strategic raise of £750,000 through the issue of
5,000,000 new ordinary shares of 1.0p each ("Subscription Shares"),
representing 5.5% of the enlarged issued share capital of the
Company, in a subscription from Purebond Ltd. (the "Subscriber") at
an issue price of 15p per share.
- The
subscription price represents a premium of 5.3% to the closing
market mid-price of the ordinary shares of the Company on 8 March
2024.
- The Subscriber will receive one
warrant with every two Subscription Shares subscribed for
(2,500,000 new warrants). The warrants have an exercise price of
25p per ordinary share and will expire two-years after the date of
the Subscription Shares' admission to trading on AIM.
- The
£750,000 raised will be applied to the Company's working capital
and the acceleration of exploration and project development
activities including, 1) next stage exploration at Garfield, 2)
commencement of key permitting steps relating to the development of
Pilot Mountain, and 3) diamond drilling of key exploration and
resource infill targets at Pilot Mountain. Further details on all
of the above items will be announced to the market in due
course.
Oliver Friesen, CEO of Golden Metal,
commented:
"I am very
pleased to announce this strategic subscription, from a single
investor, at a premium to the market price, providing the Company
with £750,000.
"We intend to
deploy this funding into what we consider to be high impact
exploration and development initiatives that have the potential to
build considerable value for the Company and
shareholders."
ADMISSION AND TOTAL VOTING
RIGHTS
Application will be made for the
5,000,000 Subscription Shares to be admitted to trading on AIM
which is expected to occur on or around 15 March
2024 ("Admission"). The Subscription 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 90,894,132 ordinary shares
of 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 EU Regulation 596/2014 (which forms part of
domestic UK law pursuant to the European Union
(Withdrawal) Act 2018).
Forward Looking Statements
This announcement contains
forward-looking statements relating to expected or anticipated
future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and
uncertainties, such as general economic, market and business
conditions, competition for qualified staff, the regulatory process
and actions, technical issues, new legislation, uncertainties
resulting from potential delays or changes in plans, uncertainties
resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties
regarding the timing and granting of prospecting rights,
uncertainties regarding the timing and granting of regulatory and
other third party consents and approvals, uncertainties regarding
the Company's or any third party's ability to execute and implement
future plans, and the occurrence of unexpected
events.
Actual results achieved may vary
from the information provided herein as a result of numerous known
and unknown risks and uncertainties and other factors.
For further information visit
www.goldenmetalresources.com
or contact the following:
Golden Metal Resources plc
Oliver Friesen (CEO)
|
Tel: +44 (0)
20 7583 8304
|
Cairn Financial Advisers LLP
Nominated Adviser
Sandy Jamieson/Jo Turner/Louise
O'Driscoll
|
Tel: +44 20 7213 0880
|
First Equity Limited
Broker
Jonathan Brown/Jason
Robertson
|
Tel: +44 20 7374 2212
|
|
|
The
Projects:
Pilot Mountain Project
The Pilot Mountain project is
an advanced exploration and mineral resource definition stage
project located in Mineral County in western Nevada.
The project covers an area of 14.80 km2 (3,656.1 acres)
and is located 200km southeast of Reno and 18km east
of Mina, Nevada. It is well situated for the supply of power,
water and skilled labour and proximity to transport infrastructure
in Mineral County and is centred around four existing
mineral deposits: Garnet; Good Hope; Gunmetal and Desert Scheelite,
all of which possess significant skarn-style
tungsten-copper-silver-zinc mineralisation. The Pilot
Mountain project consists of 176 active lode mining claims and
4 filed mill site claims. The four mill site claims filed at the
former Dunham mill site have secure access to groundwater supply
sufficient for the proposed project.
Garfield Project
The Garfield Project is an exciting
copper-gold-silver prospect consisting of 65 lode mining claims
covering 5.4 km2 (1,338 acres) located in Mineral
County, Nevada, approximately 14km due east of the town
of Hawthorne and 120km due west-northwest
of Tonopah. Exploration to date has included detailed
geochemical sampling and follow up analysis which highlighted the
presence of both porphyry and skarn-type mineralisation and
alteration at the 'High-Grade Zone'. Further to this, mapping,
prospecting and rock sampling was recently completed with results
confirming presence of high-grade copper, silver and gold
mineralisation as well as leading to the bedrock discovery of the
Pamlico Au Zone with individual rock samples up to 18.35g/t Au,
1,225g/t Ag & 1.89% Cu. Following this, geochemical analysis of
the full suite of data confirmed the strong presence of porphyry
style mineralisation across the Project, as well as potentially
overprinting epithermal style mineralisation leading to increased
gold-silver prospectivity.
Kibby Basin Lithium
Project
The Kibby Basin Project covers
two claim packages which are prospective for lithium brine
mineralisation. The southern claim package is less than 250m from a
2022 drillhole which returned a significant interval (169m) of
lithium brine mineralisation which was determined to be open in all
directions. The Project is less than 5km to the southeast of the
Company's flagship Pilot Mountain Project.
Golconda Summit Project
Golden Metal is the operator of the
Golconda Summit project, which is held under an earn-in right to
acquire up to 100 per cent. of the project from the mineral claim
owner pursuant to an option agreement. The Golconda Summit project
is an exploration stage gold and silver project located
in Humboldt County and situated at the confluence of the
Getchell and Battle
Mountain - Eureka metallogenic trends, and consists
of 44 lode mining claims, covering a total area of approximately
3.22 km2 (795.4 acres) located approximately 27km east
of Winnemucca.
Stonewall Project
The Stonewall project is an
exploration stage gold-silver property prospective for epithermal
gold-silver mineralisation. The property consists of 19 lode mining
claims covering 1.59 km2 (392.5 acres) located on the
northern flank of Stonewall Mountain, on the western edge of
the Nellis Airforce Range Restricted Access Area, in Nye
County, Nevada, approximately 24km south-east of the historic gold
mining town of Goldfield and 60km due south
of Tonopah.