TIDMPOW

RNS Number : 9037D

Power Metal Resources PLC

24 October 2022

24 October 2022

Power Metal Resources plc ("Power Metal" or the "Company")

Insider Warrant Update

Power Metal Resources plc (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a warrant update.

The Company would refer readers to its announcement of 21 July 2022 wherein warrants to subscribe for new ordinary shares of 0.1p in Power Metal at an exercise price of 0.75p per share ("Insider Warrants"), held by Company directors, could not be exercised at the original expiry date of 20 July 2022 ("July 2020 Warrants").

The Insider Warrants were issued to directors following their participation in a Company financing in July 2020.

The Insider Warrants are held by Paul Johnson, Chief Executive Officer of the Company and Ed Shaw, Non- executive Director (together the "Directors") as follows:

 
 Warrant Holder    N umber of Warrants   Exercise Price 
 
 Paul Johnson          20,000,000            0.75p 
                  --------------------  --------------- 
 Ed Shaw                7,500,000            0.75p 
                  --------------------  --------------- 
 
 

Current Status of the Insider Warrants

Within the 21 July 2022 announcement the Company committed to update shareholders as to Insider Warrant status after 3 months.

The Insider Warrants remain valid as the Directors remain unable to exercise at this time due to ongoing proactive exploration and corporate activities.

This activity includes, but is not limited to:

Ongoing developments at the Company's priority exploration projects including:

   -     the current diamond drill programme underway at the Molopo Farms Complex in Botswana, and 

- recently conducted exploration programmes at the Tati gold project in Botswana and the Athabasca uranium interests in Saskatchewan, Canada.

Extensive corporate transactional work including:

   -     planned spin-out IPOs and disposal activities, and 

- the review of next steps on four project interests (Authier North, Haneti, Silver Peak, & Wilan projects).

Under the July 2020 Warrant instrument Clause 2.3 provides that should any July 2020 Warrant holder be in the possession of price sensitive information and be thereby precluded from exercising warrant subscription rights, the exercise period shall be extended until 20 business days following the date on which the Warrant holder ceases to be an insider.

It is the Directors intention to exercise the warrants as soon as they are free to do so however given the level of activity within the Company this may not be possible for some time.

The Insider Warrants remain available to exercise under Clause 2.3 however the Company has extended the expiry date on the Insider Warrants to 21 April 2023 to reflect the limitations on exercise as described above.

Related Party Note

The extension of the Insider Warrants held by Paul Johnson and Ed Shaw as outlined above, have been treated as related party transactions for the purposes of AIM Rule 13.

Scott Richardson Brown and Owain Morton being the independent Directors for the purposes of the extension of the expiry date of the Insider Warrants held by Paul Johnson and Ed Shaw considers, having consulted with the Company's nominated adviser, SP Angel, that the extension of the Insider Warrant expiry date to 21 April 2023 to such related parties is fair and reasonable insofar as the Shareholders are concerned.

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 multiple internal exploration programmes completed or underway, with results awaited. The status for each of the Company's priority exploration projects is outlined in the table below.

 
  Project    Location   Current          Work Completed or            Results Awaited 
                           POW                Underway 
                            % 
 
 Athabasca    Canada      100%     Ground exploration              Assay results from 
  Uranium                           programme complete              samples collected 
                                    at 3 properties. Preliminary    during fieldwork. 
                                    planning for work 
                                    in Spring/Summer 2023 
                                    is ongoing. 
            ---------  ---------  ------------------------------  ---------------------- 
 Molopo      Botswana   c.53%(#)   T1-6 conductor target           Drill programme 
  Farms                             drilling underway               updates and findings 
                                    and MLEM surveys over           from further MLEM 
                                    T1-6, T1-14, T1-3               survey work. 
                                    and T2-3 completed. 
                                    Further MLEM surveys 
                                    planned over additional 
                                    AEM targets identified. 
            ---------  ---------  ------------------------------  ---------------------- 
 Tati        Botswana     100%     RC drilling and sampling        Review of mine dumps 
  Project                           of mine dumps complete.         sampling and assay 
                                                                    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 -                                 www.firstclassmetalsplc.com 
  Metals PLC            POW 27.91% 
                        Exploration 
                        in the Schreiber-Hemlo 
                        region of Ontario, 
                        Canada 
                      ------------------------  ------------------------------------------------------------------ 
 First Development     Planned IPO                               www.firstdevelopmentresources.com 
  Resources             - POW 62.12% 
  PLC                   Exploration 
                        in Western Australia 
                        and the Northern 
                        Territory of 
                        Australia 
                      ------------------------  ------------------------------------------------------------------ 
 Golden                Planned IPO                                 www.goldenmetalresources.com 
  Metal Resources       - POW 83.13% 
  PLC                   Exploration 
                        and development 
                        in Nevada, USA 
                      ------------------------  ------------------------------------------------------------------ 
 Kavango               Investment -                                  www.kavangoresources.com 
  Resources             POW 14.03% (subject 
  PLC                   to completion 
                        of Kanye Resources 
                        disposal announced 
                        8.7.22 and issue 
                        of Kavango shares 
                        e.g. financing 
                        announced 24.10.22) 
                        Exploration 
                        in Botswana 
                      ------------------------  ------------------------------------------------------------------ 
 New Ballarat          Planned IPO               A new website is currently in development 
  Gold PLC              - POW 49.9%               which will be found at www.newballaratgoldcorp.com 
                        Exploration               . 
                        in the Victoria           In the interim further information 
                        Goldfields of             in respect of NBGC can be found at: 
                        Australia                 https://www.powermetalresources.com/project/victoria-goldfields/ 
                                                  . 
                      ------------------------  ------------------------------------------------------------------ 
 Uranium               Planned IPO                               www.uraniumenergyexploration.com 
  Energy Exploration    - POW on listing 
  PLC                   estimated 40-55% 
                        Uranium exploration 
                        in the Athabasca 
                        region of Canada 
                      ------------------------  ------------------------------------------------------------------ 
 

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