TIDMPOW
RNS Number : 4200F
Power Metal Resources PLC
04 November 2022
4 November 2022
Power Metal Resources PLC
("Power Metal" or the "Company")
Disposal of E-12 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 E-12 Uranium Property ("E-12" or the
"Property").
HIGHLIGHTS:
E-12 Property
- E-12 is a 13km(2) Property located immediately south of the
prolific Athabasca Basin in Northern Saskatchewan, Canada.
- E-12 is one of twelve* uranium properties held by 102134984
Saskatchewan Ltd ("Power Sask"), a wholly owned subsidiary of Power
Metal Resources Canada Inc. ("POW Canada") which is a wholly owned
subsidiary of Power Metal.
Acquirer - Teathers Financial
- Teathers Financial is currently in the advance stages of
preparing for a change of business to become a uranium exploration
focused company which plans undertake an initial public offering on
the London capital markets - targeted for Q4 2022 (the "Listing").
Teathers is to be renamed Uranium Energy Exploration Plc with the
ticker symbol 'UEE'.
- On 8 August 2022 Power Metal announced the conditional
disposal of its interest in 100% owned Reitenbach uranium property
to Teathers Financial.
The Transaction
- A Property Purchase Agreement (the "Agreement") has been
signed for Teathers Financial Plc ("Teathers Financial" or
"Teathers") to conditionally acquire 100% ownership of the
Property, subject to completion of the Listing by 31 December
2022.
- The consideration payable is GBP250,000 in Teathers Financial
new ordinary shares of 0.1p ("Ordinary Shares") at an issue price
of 1.24114 pence per Ordinary Share and the retention of a 2% Net
Smelter Return royalty over the Property (see detailed terms
below).
- Following completion of the E-12 disposal and the disposal of
Reitenbach uranium property (announced on 8 August 2022), Power
Metal will hold 118,842,853 shares in Teathers Financial or 73.75%
of expected issued share capital prior to its planned IPO
financing, expected to be undertaken later this current
quarter.
- *The twelve uranium properties include Reitenbach uranium
property the conditional disposal of which was announced on 8
August 2022 and the E-12 property, the conditional disposal of
which is announced today.
Paul Johnson, Chief Executive Officer of Power Metal Resources
PLC commented:
"Upon its planned listing, Uranium Energy Exploration Plc will
be the only Athabasca Basin focused junior exploration company in
the London capital markets and intends to explore and advance the
Reitenbach and E-12 uranium properties at pace.
Exploration work done so far across both properties has
demonstrated extensive uranium prospectivity and the design of
planned work programmes is well underway.
Final preparations for listing of Uranium Energy Exploration Plc
are now underway and the aim is for the listing to occur by the end
of this year."
TRANSACTION TERMS
For the sale of 100% of Power Canada's interest in the E-12
Property, one of twelve* uranium focused properties held by Power
Canada within and surrounding the Athabasca Basin, Saskatchewan,
Canada, the following consideration is payable:
-- The issue to Power Sask of 20,142,853 Teathers Financial new
ordinary shares ("Ordinary Shares") at a price of 1.24114p per
share for a total value of GBP250,000.
-- Power Sask will retain a 2% Net Smelter Return ("NSR")
royalty the E-12 Property, 1% which can be bought back by Teathers
Financial at any time prior to production for GBP750,000.
-- Following completion of the E-12 disposal and the disposal of
Reitenbach property announced on 8 August 2022, Power Metal will
hold 118,842,853 shares in Teathers Financial or 73.75% of current
issued share capital prior to its planned IPO financing, expected
to be undertaken later this current quarter.
-- The NSR's on the Reitenbach and E-12 properties will be sold
and transferred to Power Metal or its wholly owned nominee at a
total value of CAD$50,000 on completion of the transaction.
The transaction is conditional on:
- The approval of Teathers Financial shareholders to the
transaction and to a Rule 9 Whitewash arrangement, enabling Power
Metal to acquire its interest without a requirement to make an
offer for the entire company.
- The London Listing of Teathers Financial.
- Note: the Reitenbach disposal was conditional upon Teathers
Financial securing a GBP125,000 pre-IPO financing to cover
transactional costs in relation to the planned listing. This
condition has been satisfied.
TEATHERS FINANCIAL
Recent IPO and Exploration Workstreams
Since the conditional acquisition of the Reitenbach uranium
property on 8 August 2022, Teathers has finalised multiple work
streams relating to their planned listing and made multiple
technical advancements of the Reitenbach property which are covered
within the link below:
https://www.londonstockexchange.com/news-article/POW/reitenbach-uranium-disposal-progress-update/15620258
This includes successful completion of a GBP125,000 pre-IPO
financing and progress in respect of ongoing exploration
including:
-- The identification of multiple significant uranium
prospective anomalies across the Reitenbach property including a
'New Lake Geochem Zone' which is highlighted by extremely
high-tenor U-in-lake sediment results.
-- Additional staking of 1,333 hectares (13.33Km(2) ) completed
to cover the new prospective zone, increasing the size of the
Reitenbach property.
Proposed Listing Board
- Mr Sandy Barblett has recently joined Teathers as a
Non-executive Director. Sandy has over 25 years of senior
management experience across numerous sectors. Mr Barblett is an
experienced director and adviser, for both private and listed
companies, in relation to raising private equity and general
fundraising, admission to public markets, strategy and management
selection. He is a founder and advisor to the Eastern Heavy
Minerals project which is the sole project for AIM quoted Capital
Metals PLC, currently Chairman of East Star Resources PLC and
IamFire PLC. Mr Barblett has a Bachelor of Business from Curtin
University of Technology in Perth, Australia, and a Bachelor or
Laws from the University of Queensland.
- Upon listing of Teathers, the board of directors is expected
to consist of Sean Wade (CEO and Executive Director), Sandy
Barblett (Non-executive Director) and Mario Visconti (Non-executive
Director).
Uranium Sector - Market Conditions
- The level of interest surrounding various uranium focused
investment opportunities remains robust, which is further bolstered
by the return of an increasing uranium spot price.
- Transactional deal flow also remains robust with considerable
quantum associated with a number of recent Athabasca Basin focused
property deals (e.g. Skyharbour Resources Ltd (TSXv:SYH) earn-in
option agreement for the disposal of up to a 75% interest in their
South Falcon East property - Announced on 20 October 2022
https://skyharbourltd.com/news-media/news/ ).
- Multiple successful ASX-listed IPO's have been undertaken,
some of which are focused on the prolific Athabasca Basin (e.g.
Basin Energy Ltd (ASX:BSN) recently completed a $9M AUD
oversubscribed IPO financing
https://www2.asx.com.au/markets/company/bsn )
- Assuming completion of the Reitenbach and E-12 property
acquisitions, and prior to shares issued in respect of an IPO
financing, Teathers will have a GBP2million valuation, placing it
at the very low end of its peer group in terms of comparable
valuations for Athabasca Basin focused uranium explorers.
- Power Metal expects to hold an interest of circa 50-55% in
Teathers upon listing, with the actual holding dependent upon the
IPO financing quantum and pricing.
NEXT STEPS
-- Exploration programmes are currently being planned across the
E-12 and Reitenbach uranium properties, which will be carried out
by Teathers Financial in 2023, following their planned listing on
the London capital markets.
-- This exploration work is expected to include geophysical
surveys across the Reitenbach property in Q1 2023, to delineate
targets for follow on inaugural drilling.
-- Power Metal, with its in house technical group with expertise
in uranium exploration, have agreed to provide Teathers with
ongoing technical consulting services relating to planned and
future exploration programmes on both properties.
-- Reflecting the growing interest shown from third parties,
comprehensive datarooms and factsheets have been compiled over all
of the Company's Saskatchewan based uranium assets.
THE E-12 PROPERTY
A detailed breakdown of all publicly available technical
information over the E-12 Uranium Property was released to the
market on 24 March 2022 and can be found at the link below:
https://www.londonstockexchange.com/news-article/POW/uranium-portfolio-update-athabasca-basin-canada/15381520
The Power Metal book value of the E-12 Property is GBP5,797 and
no losses have been recorded in respect of the Property in the year
ended 30 September 2022, with all costs capitalised.
URANIUM PROPERTIES - HOLDING STRUCTURE
Power Metal has a 100%-owned subsidiary Power Metal Resources
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 the Company's Athabasca uranium portfolio outlined in Table
1.
Table 1: 102134984 Saskatchewan Ltd., Athabasca Basin Property
Holdings
Project Licence ID Area Area
(Hectare) (km(2) )
Clearwater Uranium
Property MC00015079 1,110 11.1
------------------------ --------------- ----------- -----------
MC00015083 563 5.63
---------------------------------------- ----------- -----------
MC00015082 3,191 31.91
---------------------------------------- ----------- -----------
MC00015151 760 7.6
---------------------------------------- ----------- -----------
MC00015646 761 7.61
---------------------------------------- ----------- -----------
MC00015658 1,541 15.41
---------------------------------------- ----------- -----------
Tait Hill Uranium
Property MC00015078 1,576 15.76
------------------------ --------------- ----------- -----------
MC00015081 968 9.68
---------------------------------------- ----------- -----------
MC00015153 1,530 15.3
---------------------------------------- ----------- -----------
MC00015152 1,886 18.86
---------------------------------------- ----------- -----------
MC00015647 725 7.25
---------------------------------------- ----------- -----------
MC00015648 1,129 11.29
---------------------------------------- ----------- -----------
MC00016158 3,242 32.42
---------------------------------------- ----------- -----------
Thibaut Lake Uranium
Property MC00015077 2,206 22.06
------------------------ --------------- ----------- -----------
MC00015659 2,195 21.95
---------------------------------------- ----------- -----------
Soaring Bay Uranium
Property MC00015080 1,255 12.55
------------------------ --------------- ----------- -----------
MC00015155 3,375 33.75
---------------------------------------- ----------- -----------
MC00015874 748 7.48
---------------------------------------- ----------- -----------
MC00015875 2,529 25.29
---------------------------------------- ----------- -----------
Cook Lake Uranium
Property MC00015212 984 9.84
--------------- ----------- -----------
E-12 Uranium Property* MC00015213 1,323 13.23
--------------- ----------- -----------
Reitenbach Uranium
Property** MC00015214 2,135 21.35
------------------------ --------------- ----------- -----------
MC00015474 1,235 12.35
---------------------------------------- ----------- -----------
MC00015655 4,570 45.7
---------------------------------------- ----------- -----------
MC00015656 5,322 53.22
---------------------------------------- ----------- -----------
MC00015657 886 8.86
---------------------------------------- ----------- -----------
MC00015824 528 5.28
---------------------------------------- ----------- -----------
MC00016155*** 1,333 13.33
---------------------------------------- ----------- -----------
Reindeer Lake MC00015522 3,336 33.36
------------------------ --------------- ----------- -----------
Porter Lake MC00015561 5,656 56.56
--------------- ----------- -----------
MC00015562 5,198 51.98
---------------------------------------- ----------- -----------
Old Woman Rapids MC00015563 4,851 48.51
--------------- ----------- -----------
MC00015564 5,063 50.63
---------------------------------------- ----------- -----------
MC00015565 3,044 30.44
---------------------------------------- ----------- -----------
Durrant Lake AC00018000 5,866 58.66
--------------- ----------- -----------
Badger Lake MC00016253 1,671 16.71
--------------- ----------- -----------
Total Licence Holding Area 84,291 842.91km(2)
----------- -----------
*E-12 Property conditionally disposed to Teathers Financial PLC
as announced today.
**Reitenbach Property conditionally disposed to Teathers
Financial PLC as announced 8 August 2022.
***Newly staked ground as announced 8 September 2022
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. during fieldwork.
Preliminary planning
for work in Spring/Summer
2023 is ongoing.
--------- ---------- --------------------------- --------------------------
Molopo Botswana 87.71%(#) T1-6 conductor target Drill programme
Farms drilling underway, updates and findings
T1-14 first hole from further MLEM
commencing shortly. survey work.
Further MLEM surveys
planned over additional
AEM targets identified.
--------- ---------- --------------------------- --------------------------
Tati Botswana 100% RC drilling and sampling Review of mine
Project of mine dumps complete. dumps sampling
and assay results
from RC drill programme.
--------- ---------- --------------------------- --------------------------
(#) subject to completion of acquisition announced 18.5.22 for
which regulatory approval confirmed 28.10.22
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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