TIDMPOW
RNS Number : 4735X
Power Metal Resources PLC
30 August 2022
30 August 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Molopo Farms - Drill Contract Signed
Power Metal Resources PLC (LON:POW), the London listed
exploration company seeking large-scale metal discoveries across
its global project portfolio announces an update in relation to the
Molopo Farms Complex Project ("Molopo Farms" or the "Project")
targeting a large scale nickel-copper-platinum group element
("PGE") discovery in southwestern Botswana.
On 23 August 2022 the Company announced an update regarding
progress being made towards the first Power Metal managed and
operated diamond drilling programme at Molopo Farms, as well the
expansion of the geophysics programme over target ("T") areas T1-6
and T1-14 (covering prior 20/21 drill holes K1-6 and K1-14) and two
new target areas T1-3 and T2-3. The link to this announcement is
below:
https://www.londonstockexchange.com/news-article/POW/molopo-farms-drill-programme-geophysics-update/15596045
Key Updates:
-- Diamond drilling contract has been signed with Mindea
Exploration and Drilling Services (Pty) Ltd ("Mindea"), an
experienced Botswana-based company with extensive drilling
experience in-country. Mindea is 100% Botswana citizen owned.
-- The current planned programme is for circa 2,600m of diamond
drilling across an expected 6 drillholes, with at least two
drillholes planned into the newly identified conductor within the
T1-6 target area.
-- The drilling will be paid for on a part-cash, part-equity
basis, with over 50% of the expected contract cost to be satisfied
through the issue of up to 10,000,000 new ordinary shares of 0.1p
each in the Company at an issue price of 2.25p per share ("Drilling
Cost Shares"). The Drilling Cost Shares will be issued by the
Company within one month of the completion of 2,600 metres of
drilling.
-- Mindea's base of operations is located only 98km from Molopo
Farms allowing for quick and efficient mobilisation of crews and
equipment, with the expected mobilisation and drilling commencement
scheduled for mid-September 2022.
Paul Johnson, Chief Executive Officer of Power Metal Resources
commented:
"It has been an incredible effort by the team to put us in the
position to launch expedited drilling at Molopo Farms only a matter
of weeks after the discovery, through geophysical surveys, of a new
and very compelling conductor in target T1-6 located immediately
south of previous drillhole K1-6.
The electromagnetic conductor, the edge of which was intersected
by previous diamond drillhole K1-6 at a similar stratigraphic level
to a broad nickel sulphide mineralisation interval, represents a
high-priority target during the upcoming drilling programme.
The potential offered by this drill programme is amply
demonstrated by Mindea, the drill contractor, taking a significant
portion of the contract costs in Power Metal shares.
Now the real work begins, with the few weeks prior to drilling
commencement to be used to undertake the expanded geophysical
surveys to confirm precision drill targeting at T1-6, and the
follow up surveys at targets T1-14, T1-3 and T2-3. That survey work
is underway currently.
Further Molopo drilling updates are expected prior to and
following mobilisation, alongside updates in respect of the
expanded geophysics drill target generation programme."
PROJECT BACKGROUND AND OWNERSHIP
Power Metal currently has a current circa 53% effective economic
interest in Molopo, held through a direct project interest and a
shareholding in partner Kalahari Key Mineral Exploration (Pty) Ltd
("KKME"). On 18 May 2022 Power Metal announced a conditional
transaction that would see its interest in Molopo Farms increasing
to 87.71% (the "Transaction"). The announcement may be viewed
through the following link:
https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701
As part of the Transaction, Power Metal will become the Project
operator and in advance of completion the Company is working with
the team at KKME to maintain momentum with regard to Project
exploration.
Work streams are also in process to secure Botswana regulatory
approvals enabling the Transaction to complete.
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.
Project Location Current Work Completed or Results Awaited
POW Underway
%
Athabasca Canada 100% Ground exploration Results from ground
Uranium programme underway exploration including
at 3 properties. Continuing spectrometer analysis,
data analysis across sampling and mapping.
the property portfolio.
--------- --------- ----------------------------- --------------------------
Authier Canada Earn-in Property Evaluation Update covering
North to 100% Report completed. exploration plans
Lithium for target areas
identified during
the Evaluation.
--------- --------- ----------------------------- --------------------------
Molopo Botswana 53%(#) Final preparations Commencement of
Farms for the launch of T1-6 drill programme,
K1-6 conductor target and findings therefrom
drilling and MLEM and results from
surveys over T1-6, MLEM surveys.
T1-14, T1-3 and T2-3
targets.
--------- --------- ----------------------------- --------------------------
Tati Botswana 100% RC drilling underway Review of mine dumps
Project and previously sampling sampling, and processing
of mine dumps complete. potential. Results
from RC drill programme.
--------- --------- ----------------------------- --------------------------
(#) subject to completion of acquisition announced 18.5.22
interest will increase to 87.71%
Exploration work programmes may also be underway within Power
Metal investee companies and 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. These
interests are summarised in the table below:
Company Status/Operations Link
First Class Investment - POW 28.19% www.firstclassmetalsplc.com
Metals PLC Exploration in the Schreiber-Hemlo
region of Ontario, Canada
------------------------------------ ------------------------------------------------------------
First Development Planned IPO - POW 62.12% www.firstdevelopmentresources.com
Resources P Exploration in Western Australia
LC and the Northern Territory
of Australia
------------------------------------ ------------------------------------------------------------
Golden Metal Planned IPO - POW 83.13% www.goldenmetalresources.com
Resources PLC Exploration and development
in Nevada, USA
------------------------------------ ------------------------------------------------------------
Kavango Resources Investment - POW 14.03% www.kavangoresources.com
PLC (subject to completion of
Kanye Resources disposal
announced 8.7.22)
Exploration in Botswana
------------------------------------ ------------------------------------------------------------
New Ballarat Planned IPO - POW 49.9% A new website is currently
Gold PLC Exploration in the Victoria in development which
Goldfields of Australia will be found at www.newballaratgoldcorp.com
.
In the interim further
information in respect
of NBGC can be found
at:
https://www.powermetalresources.com/project/victoria-goldfi
elds/
.
------------------------------------ ------------------------------------------------------------
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