TIDMPOW
RNS Number : 1598H
Power Metal Resources PLC
02 August 2021
2 August 2021
Power Metal Resources PLC
("Power Metal" or the "Company")
Kalahari Copper Belt - Significant Expansion
Acquisition of 8 new Prospecting Licences increase the ground
holding of local operating company Kanye Resources to
4,257km(2)
Power Metal Resources PLC (LON:POW) the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio, announces a significant expansion of
exploration ground, targeting district scale copper-silver
discoveries, in the Kalahari Copper Belt ("KCB"), Botswana.
The acquisition of eight prospecting licences ("PLs") increases
the strategic ground held by the South Ghanzi Project ("South
Ghanzi" or the "Project") by 229% to 4,257km(2) , making one of the
largest licence footprints in the KCB.
The acquisition was completed by the Project's local operating
company Kanye Resources Pty Ltd ("Kanye"), in which Power Metal and
joint venture ("JV") partner Kavango Resources plc (LON:KAV)
("Kavango") each have a 50% interest.
A map showing all the PLs held by Kanye can be viewed on the
Company's website through the following link:
https://www.powermetalresources.com/kalahari-copper-belt-licence-map/
The acquisition was originally announced to the market on 29
March 2021 and was subject to due diligence and licence transfer
which has now been completed successfully. The original
announcement may be viewed through the following link:
https://www.londonstockexchange.com/news-article/POW/kalahari-copper-belt-business-update/14916399
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc, commented:
"With the exploration success Power Metal and Kavango have
achieved to date at the South Ghanzi Project, this substantial
expansion of our land position within the KCB is a major
development for our Company.
Without question the KCB joint venture with Kavango is currently
one of Power Metal's highest priorities and we have got to this
point in short order through the exceptional work undertaken by the
Kavango operational team.
The progress achieved in the KCB demonstrates the value we can
generate for our shareholders when we focus our financial and
managerial resources on projects that deliver high-impact
exploration results efficiently and effectively.
We eagerly look forward to the planned drill programme at South
Ghanzi, as well as inaugural and ongoing exploration results at our
newly expanded land package within the KCB."
ACQUIRED LICENCE HIGHLIGHTS:
Kanye has completed two separate acquisitions to purchase 100%
of the eight PLs. All the PLs have now been transferred to Kanye by
the Ministry of Mines and new Prospecting Licence documentation has
been issued. These include:
- Four PLs in proximity to the town of Ghanzi in the central
zone of the Botswana KCB from Shongwe Resources (Pty) Ltd for
US$200,000 (the "South Ghanzi Extension Licences").
- Four PLs near the town of Mamuno on the Namibian border for
US$230,000, from Vinmarsh Interprises (Pty) Ltd (the "Mamuno
Licences").
Cash acquisition costs have been funded equally by Power Metal
and Kavango from existing cash resources and Kanye now controls
4,257km(2) of PLs in the KCB. The cost to Power Metal amounts to
US$215,000 (c.GBP153k) funded from existing cash resources.
The South Ghanzi Extension Licences (481km(2) )
-- The original South Ghanzi Project included two licences
(PL036/2020 and PL037/2020) covering an area of 1,294km(2) south of
the town of Ghanzi in the KCB.
-- The South Ghanzi Extension PLs include four licences, two of
which are adjacent to the South Ghanzi Project, which cover
prospective structures identified from their recently completed
Airborne Electromagnetic ("AEM") survey.
-- A further two licences include one licence comprising an area
previously relinquished by MOD Resources Ltd (MOD Resources Ltd was
acquired by Sandfire Resources NL (ASX:SFR) in October 2019),
containing a soil-sampling anomaly, and one licence in an area west
of PL036/2020 which is considered to be prospective for
copper-silver mineralisation.
-- Exploration at South Ghanzi is considerably advanced, with
seven major copper/silver targets identified to date and locations
for the planned upcoming drill programme currently being
finalised.
The Mamuno Licences (2,482km(2) )
-- The Mamuno Licences are four contiguous PLs on the western
boundary of the KCB that cover a large anticlinal (possibly dome)
system; that is plunging towards the west.
-- The anticlinal structures at Mamuno are similar to that
recently identified at the South Ghanzi Project (within PL
036/2020) and appear to be significantly larger.
-- Within the licence area, the Ngwako Pan and D'kar Formation
contact zone is variably exposed for over 100km (covering a
possible reduction-oxidation ("redox") boundary). The Kalahari sand
cover over this exposed contact zone is relatively thin.
-- The area is well accessed by the Trans-Kalahari Highway,
which links the cities of Gaborone and Johannesburg with Windhoek
and Walvis Bay in Namibia. Mamuno is a border town located near the
Botswana and Namibia border.
KCB Environmental Management Plan ("EMP")
Kavango has received final feedback from the Ministry of Mines
and final processing of the KCB EMP is underway. Receipt of EMP
approval is a key step required before exploration drilling can
take place on PL areas.
The proposed EMP covers both the South Ghanzi, South Ghanzi
Extension and Mamuno Licences.
Immediate expansion of exploration in the KCB
In-depth desktop analysis is underway on the recently acquired
licences.
Kavango will deploy four field teams to the KCB to begin
extensive soil sampling and plans are being finalised to further
increase number of teams on the ground.
This work is in addition to the planned drill programme at the
South Ghanzi Project targeting copper-silver discoveries. Further
information with regard to drill targets and the programme itself
will be provided to the market in due course.
JOINT VENTURE STRUCTURE
The KCB PLs (South Ghanzi, South Ghanzi Extension and the Mamuno
Licences) are held in the name of Kanye Resources (Pty) Ltd, a
private Botswana company in which Power Metal and Kavango each have
a 50% interest through Kanye Resources plc, a UK holding
company.
Exploration costs are equally shared. Kavango is the operator.
There are plans to IPO Kanye Resources plc on a recognised stock
exchange.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been
read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM,
FGS), who is a qualified geologist and acts as the Competent Person
under the AIM Rules - Note for Mining and Oil & Gas Companies.
Mr O'Reilly is a Principal consultant working for Mining Analyst
Consulting Ltd which has been retained by Power Metal Resources PLC
to provide technical support.
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 (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 principle focus on opportunities offering
district scale potential across a global portfolio including
precious and base 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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