TIDMPOW
RNS Number : 2397V
Power Metal Resources PLC
08 August 2022
8 August 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Disposal of Reitenbach Uranium Property - Saskatchewan,
Canada
Power Metal Resources plc (LON:POW), the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces the conditional disposal of
its 100% owned Reitenbach Uranium Property ("Reitenbach" or the
"Property") located east of the prolific Athabasca Basin in
Northern Saskatchewan, Canada.
HIGHLIGHTS:
- A Property Purchase Agreement (the "Agreement") has been
signed with Teathers Financial Plc ("Teathers Financial" or
"Teathers"). Teathers Financial is to conditionally acquire 100%
ownership of the Property, subject to a 2% net smelter return
("NSR") royalty, in exchange for cash and shares.
- The consideration payable is GBP360,000 (to be settled by the
issue of Teathers Financial new ordinary shares of 0.1p ("Ordinary
Shares") and a cash payment of GBP10,000 (see detailed terms
below)).
- Reitenbach is one of ten uranium properties held by 102134984
Saskatchewan Ltd ("Power Sask"), a wholly owned subsidiary of Power
Metal Resources Canada ("POW Canada") which itself is a wholly
owned subsidiary of Power Metal.
- Teathers Financial is currently in the advance stages of
preparing for a change of business to become a uranium focused
exploration company which plans to list on the London equity
capital markets - targeted for Q3 2022.
Paul Johnson, Chief Executive Officer of Power Metal Resources
PLC commented:
"Power Metal has secured another crystallisation event with the
disposal of Reitenbach into a vehicle planning to list in the
London markets in the near term.
With the refocussing of Teathers into a uranium exploration
vehicle with Reitenbach as their flagship property, we believe the
proposition will attract pre-IPO and IPO financing interest, and
trade successfully as a listed vehicle.
Outside of Reitenbach, we continue to own 100% of our remaining
nine Athabasca properties, some of which we expect to explore
ourselves and, given the level of interest in quality uranium
projects, some may be the subject of further disposals. In this
regard, datarooms are being established for all projects to enable
expeditious third party review.
Further information to follow regarding this disposal and other
exploration and corporate activities in respect of our Athabasca
property portfolio."
TRANSACTION TERMS
For the sale of 100% of the Company's interest in the Reitenbach
Property, one of ten uranium focused properties held by Power Metal
surrounding the Athabasca Basin, Saskatchewan, Canada, the
consideration of GBP360,000 is to be settled by:
-- The issue to Power Sask of 98,700,000 Teathers Financial
Ordinary Shares at a price of 0.35461p per share for a total value
of GBP350,000.
-- A cash payment to Power Sask totalling GBP10,000, which
covers several costs incurred by Power Metal on behalf of Power
Sask and Power Canada in preparation of this transaction. This also
covers costs of the National Instrument 43-101 report that was
completed over the Property - which will allow Reitenbach to be the
main listing asset for Teathers Financial during its upcoming
planned listing.
Power Sask will retain a 2% Net Smelter Return ("NSR") [1]
royalty across the Property, 1% of which can be bought back by
Teathers Financial at anytime prior to production for
GBP750,000.
The transaction is conditional on:
- Teathers Financial securing a GBP125,000 initial pre-IPO
financing to cover transactional costs in relation to the planned
listing.
- The approval of Teathers Financial shareholders to the
transaction; to a Rule 9 Whitewash arrangement, enabling Power
Metal to acquire its interest without a requirement to make an
offer for the entire company and approval of a capital
reorganisation of Teathers.
- Admission of Teathers shares to trading on the London equity capital markets.
After the issue of further shares following completion of
Teathers Financial pre-IPO and IPO financings, Power Metal
anticipates its holding will amount to 40-55% of Teathers Financial
issued share capital on listing. Power Metal will provide further
updates on this in due course.
NEXT STEPS
-- Exploration programmes are currently being planned across the
Reitenbach Property, which subject to completion of the Agreement
will be carried out by Teathers Financial following their planned
listing in the London capital markets.
-- Power Metal, with its in house technical group with expertise
in uranium exploration, have agreed to provide Teathers with
ongoing technical consulting services, to be paid for by Teathers,
relating to planned and future exploration programmes on the
Reitenbach Property.
-- Reflecting the growing interest shown from third parties,
comprehensive datarooms and factsheets are being established for
all of the Company's Saskatchewan based uranium assets.
THE REITENBACH PROPERTY
A detailed breakdown of all publically available technical
information over the Reitenbach Uranium Property was released to
the market on 8 February 2022 and can be found at the link
below:
https://www.londonstockexchange.com/news-article/POW/reitenbach-uranium-property-athabasca-basin/15319141
The Power Metal book value of the Reitenbach Property is
GBP55,292 and no losses have been recorded in respect of the
Property in the year ended 30 September 2021, with all costs
capitalised.
URANIUM PROPERTY HOLDING STRUCTURE
Power Metal has a 100% subsidiary Power Metal Canada Inc ("Power
Canada"). which acts as the holding company for certain Canadian
project operations.
Power Canada has a wholly owned subsidiary, 102134984
Saskatchewan Ltd, which is the holder of all the uranium
properties.
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.
Exploration Work Overview
Power Metal has internal exploration programmes completed or
underway, with results awaited, as outlined in the table below.
Exploration work programmes may also be underway within planned
IPO vehicles where Power Metal has a material interest the findings
from which will be released on their respective websites, with
simultaneous updates through Power Metal regulatory announcements
where required:
www.firstclassmetalsplc.com
www.goldenmetalresources.com
www.firstdevelopmentresources.com
For planned IPO vehicle New Ballarat Gold Corporation PLC (NBCG)
a new website is currently in development which will be found at
www.newballaratgold.com . In the interim further information in
respect of NBGC can be found at
https://www.powermetalresources.com/project/victoria-goldfields/
.
Power Metal also holds a material investment in Kavango
Resources plc with exploration updates available through their
regulatory announcements and on their website:
www.kavangoresources.com
Project Location Current Work Completed Results Awaited
POW or Underway
%
Athabasca Canada 100% Hyperspectral Finalise review of data
Uranium data analysis from 3 properties. Prepare
conducted across for summer exploration
7 properties. programme across 4 properties.
Updating to 9
data rooms for
third party review.
--------- --------- ---------------------- --------------------------------
Authier Canada Earn-in Property Evaluation Update covering exploration
North to 100% Report completed. plans for target areas
Lithium identified during the
Evaluation.
--------- --------- ---------------------- --------------------------------
Molopo Botswana 53%(#) Comprehensive Finalise drill programme
Farms data review complete targets, select drill
and establishment contractor and launch
of data room drill programme.
for third party
review. Geophysics
programme underway.
--------- --------- ---------------------- --------------------------------
Tati Botswana 100% Site visit with Exploration planning
Project mapping of gold underway including further
workings and mapping, sampling and
mine dumps. launch of an RC drill
programme.
--------- --------- ---------------------- --------------------------------
(#) subject to completion of acquisition announced 18.5.22
interest will increase to 87.71%
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END
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