TIDMPOW
RNS Number : 7812P
Power Metal Resources PLC
19 February 2021
19 February 2021
Power Metal Resources PLC
("Power Metal" or the "Company")
Warrant Update
Power Metal Resources PLC (LON:POW) the AIM listed metals
exploration and development company is pleased to provide a warrant
update for shareholders.
Update Regarding Exercise of Warrants Expiring February 2021
On 18 February 2019 the Company issued warrants (the "February
2019 Warrants") as part of the refinancing of the Company as
outlined below:
Description N umber of Warrants Exercise Price
Financing Warrants 200,000,000 1.0p
-------------------- ---------------
Advisor Warrants 5,000,000 1.0p
-------------------- ---------------
Debt Settlement Warrants 6,000,000 0.5p
-------------------- ---------------
All February 2019 Warrants carried a two-year life which ended
yesterday on 18 February 2021.
Power Metal can now confirm that, save for the 40 million
Financing Warrants held by insiders and connected parties, further
details of which are provided below (the "Insider Warrants"), the
Company has received valid exercise notices for 100% of all the
February 2019 Warrants.
The Company is currently processing exercise notices and will
provide an Exercise of Warrants market announcement in the coming
days.
Warrant Exercise Proceeds and Working Capital Summary
In total the exercise of the February 2019 Warrants to date has
raised an additional GBP1.68 million for the Company and in total
all warrant exercises in 2020/2021 have raised circa
GBP2.9million.
This inflow of monies has significantly increased the Company's
working capital, including cash and listed investments, which
currently stands at circa GBP3.28 million.
Extension of Insider Warrants
As at 18 February 2021 the following February 2019 Warrants held
by Directors or their related parties remained outstanding
("Insider Warrants"):
Warrant Holder N umber of Warrants Exercise Price
Paul Johnson 10,000,000 1.0p
-------------------- ---------------
Andrew Bell 10,000,000 1.0p
-------------------- ---------------
Red Rock Resources
plc 20,000,000 1.0p
-------------------- ---------------
The Insider warrants were issued following participation in the
February 2019 Financing.
The Company is currently finalising its audited financial
statements for the year ended 30 September 2020, which Power Metal
expects will be announced to the market in the week commencing 22
February 2021, consequently the Company is in a close period.
In addition the Company is currently managing numerous
exploration programmes and corporate activities across its
portfolio, including matters pertaining to its Australian gold
joint venture, Red Rock Australasia Pty Limited, in which the
Company holds a 49.9% interest (with joint venture partner Red Rock
Resources plc (LON:RRR) holding 50.1%).
As a result, the February 2019 Warrants held by Paul Johnson
(Chief Executive Officer of Power Metal), Andrew Bell (Chairman of
Power Metal and Red Rock Resources plc) and those held by Red Rock
Resources plc, could not be exercised on the expiry date of 18
February 2021 and may be extended under the warrant instrument, as
outlined below.
Under the February 2019 Warrant instrument clause 2.3 provides
that should any February 2019 Warrantholder 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
Warrantholder ceases to be an insider.
Given the level of ongoing operational activity there is a
material likelihood that the receipt of price sensitive information
could frequently restrict the ability of Paul Johnson, Andrew Bell
and Red Rock Resources plc to exercise the February 2019
warrants.
Reflecting the above the Company has extended the Insider
Warrants expiry date by three months to a new expiry date of 18 May
2021.
RELATED PARTY NOTE
The extension of the Insider Warrants held by Paul Johnson,
Andrew Bell and Red Rock Resources Plc as outlined above, have been
treated as a related party transaction for the purposes of AIM Rule
13.
Scott Richardson Brown and Edmund Shaw, being the independent
Directors for the purposes of the extension of the expiry date of
the Insider Warrants held by Paul Johnson and Andrew Bell and Red
Rock Resources Plc consider, having consulted with the Company's
nominated adviser, SP Angel, that the extension of the warrant
expiry date to 18 May 2021 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 (LON:POW) is an AIM listed metals
exploration and development company seeking a large scale metal
discovery.
The Company has a global portfolio of project interests
including precious metal exploration in North America and Australia
together with base and strategic metal exploration in Africa.
Project interests range from early stage greenfield exploration to
later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project
generation, exploration and development and have identified an
opportunity to utilise the Company's position to become a leader in
the London market for investors wishing to gain exposure to
proactive global metals exploration.
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