TIDMPOW
RNS Number : 8443X
Power Metal Resources PLC
06 May 2021
6 May 2021
Power Metal Resources PLC
("Power Metal" or the "Company")
Botswana Molopo Farms Complex - Commercial Update
Kalahari Key Restructuring Progressing Well and Intention to
Seek Listing
Power Metal Resources PLC (LON:POW) the AIM listed metals
exploration and development company is pleased to announce a
commercial update in respect of Kalahari Key Mineral Exploration
Pty Ltd ("Kalahari Key" or "KKME") and the Molopo Farms Complex
Project (the "Project" or "MFC Project").
Paul Johnson, Chief Executive Officer of Power Metal Resources,
commented:
"We are delighted to see the MFC Project structuring discussions
progressing so efficiently and we continue to work with our
partners to implement this as quickly as possible.
The decision to create a new UK plc to hold the remaining 60%
interest in the MFC Project is an important step. We believe the
planned UK listing will enable fuller recognition of the MFC
Project's value, particularly given the notable exploration success
already achieved and the level of interest being shown in the
Project. We also welcome Richard's appointment as Newco CEO and
note that as expected he is already pursuing matters with some
determination.
For Power Metal we are pleased to support the listing of the new
vehicle, which will enable our holding in Kalahari Key to have
demonstrable value, further building our working capital with
additional listed equity.
In the interim we continue to push on with technical work at the
MFC project and further updates are anticipated in the near
term."
Background
As announced on 22 April 2021 Power Metal has earned-in to a 40%
direct interest in the MFC Project, which is targeting prospective
magmatic intrusion-hosted massive nickel sulphide and
platinum-group element ("PGE") mineralisation in Botswana. The
balancing 60% direct interest is held by Kalahari Key.
It is the intention of Power Metal to retain ownership of its
40% direct MFC Project interest at this time.
Restructuring Process
To reflect the new ownership structure a number of steps are
planned as follows:
1. Kalahari Key will remain a single project holding company and
continue to manage the MFC project, and a new local board will be
established including at least one director from Power Metal.
2. The share capital of Kalahari Key will be restructured to
reflect a new ownership structure for the MFC Project with 60% of
Kalahari Key shares held by existing Kalahari Key shareholders and
40% of shares held by Power Metal.
3. The above 60% Kalahari Key shareholding will be held through
a newly formed UK plc ("Newco") in which existing Kalahari Key
shareholders (including Power Metal) will have the same percentage
ownership interest as currently held in Kalahari Key.
Proposed Listing of Newco
The intention is for Newco to list on a recognised stock
exchange on the London capital markets during 2021 and for it to
become a proactive resource exploration vehicle. Newco operations
will principally include advancement of the MFC Project and the
acquisition of additional opportunities, with a focus on
Botswana.
Newco Management
A new Chief Executive Officer, Richard Nolan, has been appointed
to manage Newco operations and the proposed listing process.
Richard has over 20 years' international experience in banking and
management including equity research, mergers & acquisitions
and private equity. He has held board level positions with several
natural resource focused companies both private and publicly
listed.
Additional Newco board appointments will be announced in due
course.
Financing of Newco
Following settlement of any outstanding costs within Kalahari
Key, the proceeds from a recent rights issue (raising circa
US$259,000 and in which Power Metal took up its rights), when
settled by participants, will be applied to initially fund Newco.
Thereafter it is expected that Newco will seek additional funding
through further private funding rounds or through an IPO on a
recognised stock exchange.
Power Metal Interest in the MFC Project
Currently, before the restructuring above, Power Metal holds 18%
of Kalahari Key and therefore with its 40% direct project interest
has an overall effective economic interest in the MFC Project of
50.8%.
Following the restructuring and upon settlement of the Kalahari
Key rights issue in which Power Metal has participated the Company
will hold 21.7% of Newco, meaning its overall effective economic
interest in the MFC Project will increase to 53.02%.
Latest Exploration Information
Latest exploration results from the MFC Project including assays
from diamond drilling displaying significant nickel intersections
were published on 8 April 2021 and may be viewed through the
following link:
https://www.londonstockexchange.com/news-article/POW/botswana-molopo-farms-complex-assay-results/14929973
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 and base 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.
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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