TIDMGMET TIDMPOW
RNS Number : 8275Y
Golden Metal Resources PLC
10 May 2023
10 May 2023
Golden Metal Resources plc ('Golden Metal' or the 'Company')
First Day of Dealings
Golden Metal Resources plc, a mineral exploration company
focused on tungsten, gold, copper, silver and zinc within Nevada,
USA, is pleased to announce that, at 08:00 today, its ordinary
shares will commence trading on AIM under the ticker GMET. As part
of the process of admission to trading on AIM ("Admission"), the
Company has raised gross proceeds of GBP1.98m through the issue of
23,317,643 new ordinary shares of GBP0.01 each at a placing price
of 8.5 pence per share, equating to a market capitalisation of
GBP7.16 million on Admission.
Overview
The key strengths and attributes of Golden Metal can be
summarised as follows:
Location:
The state of Nevada is a well-regarded, mining investment
friendly jurisdiction. It was ranked third in the Fraser
Institute's global mining investment attractiveness index survey in
2021 and has a long history of mining and a strong mining and
ancillary business support network. Nevada is one of the principal
producers of precious metals in the world, with 25 precious metal
mines currently in production, accounting for approximately 70 per
cent. of the United States total gold production in 2020. In 2018
Nevada accounted for 83 per cent. of the US's total gold
production.
According to the Nevada Mining Association (2022), as of
November 2021, 11,000 people were employed by the metal mining
sector within the state, with a Nevada Gross Domestic Product
contribution of US$3.2 billion in 2020.
Projects with Critical and High-Demand Minerals:
The Company's 100% owned Pilot Mountain Project ("Pilot
Mountain") hosts a tungsten-copper-silver-zinc Mineral Resource
Estimate (MRE) which includes 12.53Mt at 0.27% W0(3) (tungsten
tri-oxide) with significant copper-silver-zinc credits. Tungsten is
an in-demand and critical metal as outlined below:
-- Tungsten is included in the British Geological Survey's UK
Critical Minerals list (2022), the US Geological Survey's (USGS)
Critical Minerals list (2022) and the European Commission's
Critical Raw Materials list (2020).
-- The global demand for tungsten is forecast to rise annually
(3-7 per cent. per annum according to the British Geological
Survey) and is predicted to outstrip available supply, which is
likely to place continued upward pressure on prices in the
near-term.
Management Team:
A proven management team with:
-- a broad spectrum of knowledge and capabilities;
-- substantial technical and listed company experience; and
-- extensive North American operating experience with
connections to various in-country consulting teams.
Diverse Project Base:
The Golden Metal portfolio consists of four Nevada based
projects (collectively the "Nevada Projects") comprising the Pilot
Mountain Project and three exploration stage projects: the Golconda
Summit Project (gold), the Garfield Project (copper-gold-silver)
and the Stonewall Project (gold-silver).
The Nevada Projects are all well located within major
metallogenic belts containing active, globally important precious-
and base-metal mining operations. All the assets have favourable
geology which is prospective for skarn, carlin, epithermal and
porphyry deposit types. The portfolio is focussed on tungsten,
gold, silver and base metal mineralisation.
In particular, the Pilot Mountain Project offers significant
exploration upside potential as well as the opportunity for Golden
Metal to de-risk the Project on a number of fronts. These include
building on the existing MRE, furthering and updating technical
studies relating to the potential development of the known
resources, further permitting, making relevant grant applications,
including to the DOD Defence Production Act (DPA) Title III grant
office as well as commodity marketing and further metallurgical
studies.
In total, the Nevada Projects cover a combined area of
approximately 22.83 km(2) .
Oliver Friesen, CEO of Golden Metal, commented:
" Golden Metal's admission to AIM comes at a time when it is
clear that the world needs more critical, precious-and base-metals.
This represents an exciting opportunity for a company such as ours
with ownership of four diverse exploration and development assets
located wholly within one of the top mining jurisdictions in the
world. I believe that our Pilot Mountain Project, with its tungsten
MRE, offers the greatest potential for exploitation, given that the
US currently has no domestic primary production of the metal and is
looking to reduce its heavy reliance on imports of critical metals
from China. We are looking forward to actively pushing forward
various exploration and corporate developments both within the US
and UK and will provide further updates to the market on these
various plans in due course.
I would like to thank all of the Golden Metal team and pre-IPO
investors for their patience as we methodically worked through the
various exploration and corporate developments which have led the
Company to the exciting position it is in now. "
Background
Golden Metal is a mineral exploration company focused on
tungsten, gold, copper, silver and zinc within Nevada, USA. It was
established for the purpose of holding all of the Nevada mining
assets of Power Metal Resources plc ("Power Metal") and progressing
the exploration and development of those assets. The Company holds
four mining assets comprising the 100% owned Pilot Mountain,
Garfield and Stonewall Projects together with an earn in option
over the Golconda Summit Project. Each Project consists of
unpatented lode mining claims located entirely on land managed by
the United States Bureau of Land Management.
The Directors believe that the combination of a suite of
high-quality, diversified Nevada based mining assets within a
single, US-focused AIM-quoted vehicle creates a compelling
investment opportunity. It is their opinion that the Nevada
Projects hold several underexplored, highly prospective tungsten,
gold, copper, silver and zinc exploration targets. The Directors
consider that the Pilot Mountain Project has the potential to
increase its existing tungsten focused MRE and to expand on
multiple tungsten, copper, silver and zinc-rich zones identified by
minimal historical drilling. In addition, the Directors consider
that the Golconda Summit Project has the potential for a major gold
discovery to follow the identification of significant surface gold
mineralisation during a 1989 trenching programme. Accordingly, the
Company's exploration focus will be on these two projects but the
Directors also believe there is potential value to be realised at
the Garfield and Stonewall Projects.
On 8 April 2022, the Company raised GBP750,000 through a pre-IPO
Financing at a price of 6.67 pence per Ordinary Share, following
which Power Metal held 83.13 per cent. of the existing ordinary
shares. On Admission, Power Metal will hold 62.1 per cent. of the
Company's enlarged share capital.
Placing, Subscription, Acquisition and Use of Proceeds
The Company has raised gross proceeds of GBP1,982,000 through a
placing and subscription through the issue of 12,449,208 Placing
Shares and 10,868,435 Subscription Shares at a price of 8.5 pence
per share.
The net proceeds from the Placing and Subscription will be used
by the Company to:
-- provide funding for the Company to further explore and develop the Nevada Projects; and
-- provide the Company with ongoing working capital to support its business operations.
Warrants
Together with every two Placing Shares and every two
Subscription Shares, each Placee and Subscriber will also be
granted one warrant entitling the holder to subscribe for one
further new Ordinary Share at 10.75 pence per Ordinary Share, for a
period of 12 months from Admission, and one warrant entitling the
holder to subscribe for one further new Ordinary Share at 17 pence
per Ordinary Share, for a period of 24 months from Admission.
Further details of the warrants are set out in Part VI of the
Company's AIM admission document.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (which forms part of
domestic UK law pursuant to the European Union (Withdrawal) Act
2018).
Forward Looking Statements
This announcement contains forward-looking statements relating
to expected or anticipated future events and anticipated results
that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market
and business conditions, competition for qualified staff, the
regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political
jurisdiction, uncertainties regarding the results of exploration,
uncertainties regarding the timing and granting of prospecting
rights, uncertainties regarding the timing and granting of
regulatory and other third party consents and approvals,
uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of
unexpected events.
Actual results achieved may vary from the information provided
herein as a result of numerous known and unknown risks and
uncertainties and other factors.
For further information visit www.goldenmetalresources.com or
contact the following:
Golden Metal Resources plc Tel: +44 (0) 20 7583 8304
Oliver Friesen (CEO)
Cairn Financial Advisers LLP Tel: +44 20 7213 0880
Nominated Adviser
Sandy Jamieson/Jo Turner/Louise
O'Driscoll
--------------------------
First Equity Limited Tel: +44 20 7374 2212
Broker
Jonathan Brown/Jason Robertson
--------------------------
The Projects:
Pilot Mountain Project
The Pilot Mountain project is an advanced exploration and
mineral resource definition stage project located in Mineral County
in western Nevada. The project covers an area of 14.80 km(2)
(3,656.1 acres) and is located 200km southeast of Reno and 18km
east of Mina, Nevada. It is well situated for the supply of power,
water and skilled labour and proximity to transport infrastructure
in Mineral County and is centred around four existing mineral
deposits: Garnet; Good Hope; Gunmetal and Desert Scheelite, all of
which possess significant skarn-style tungsten-copper-silver-zinc
mineralisation. The Pilot Mountain project consists of 176 active
lode mining claims and 4 filed mill site claims. The four mill site
claims filed at the former Dunham mill site have secure access to
groundwater supply sufficient for the proposed project.
Golconda Summit Project
Golden Metal is the operator of the Golconda Summit project,
which is held under an earn-in right to acquire up to 100 per cent.
of the project from the mineral claim owner pursuant to an option
agreement. The Golconda Summit project is an exploration stage gold
and silver project located in Humboldt County and situated at the
confluence of the Getchell and Battle Mountain - Eureka
metallogenic trends, and consists of 44 lode mining claims,
covering a total area of approximately 3.22 km(2) (795.4 acres)
located approximately 27km east of Winnemucca.
Garfield Project
The Garfield project is an early exploration stage copper, gold
and silver property consisting of 39 lode mining claims covering
3.23 km(2) (797.9 acres) located in Mineral County, Nevada,
approximately 14km due east of the town of Hawthorne and 120km due
west-northwest of Tonopah.
Stonewall Project
The Stonewall project is an exploration stage gold-silver
property prospective for epithermal gold-silver mineralisation. The
property consists of 19 lode mining claims covering 1.59 km(2)
(392.5 acres) located on the northern flank of Stonewall Mountain,
on the western edge of the Nellis Airforce Range Restricted Access
Area, in Nye County, Nevada, approximately 24km south-east of the
historic gold mining town of Goldfield and 60km due south of
Tonopah.
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