Power Metal Resources PLC Strategic Partner Update - Botswana (2189E)
July 05 2021 - 9:07AM
UK Regulatory
TIDMPOW
RNS Number : 2189E
Power Metal Resources PLC
05 July 2021
5 July 2021
Power Metal Resources plc
("Power Metal" or the "Company")
Strategic Partner Update - Botswana
Power Metal Resources plc (LON:POW), the AIM listed metals
exploration and development company, is pleased to note the
announcement by Kavango Resources (LON:KAV) ("Kavanago") released
today announcing a GBP1.94m placing and an expansion of their drill
programme at their wholly owned Kalahari Suture Zone project which
may be viewed through the following link:
https://www.londonstockexchange.com/news-article/KAV/expansion-of-drilling-ksz-ops-update-and-placing/15044807
Power Metal and Kavango each have a 50% interest in Kanye
Resources plc, a UK registered strategic joint venture company
which wholly owns Kanye Resources (Pty) Ltd ("Kanye Botswana") a
Botswana private company.
Kanye Botswana is the proposed holding company for the South
Ghanzi - Kalahari Copper Belt and Ditau Camp Projects. An
application has been made by Kavango to transfer the prospecting
licences for both projects into Kanye Botswana.
There are plans to IPO Kanye Resources plc on a recognised stock
exchange.
Power Metal currently holds 9,500,000 Kavango ordinary shares
and 4,750,000 warrants to acquire Kavango shares at an exercise
price of 2.5p per Kavango share at any time prior to 28 April
2023.
Power Metal's holding in Kavango at the market mid-price as at
1pm today (6.1p) is valued at GBP750,500 (value of shares and
margin above exercise price on the 2.5p warrants).
Recognising our original cost of entry GBP38,000 (April 2020)
and the GBP47,500 cost of exercising the previously held 1.0p
warrants (exercised April 2021), Power Metal is showing a paper
gain of GBP665,000 on its Kavango investment.
Paul Johnson, Chief Executive Officer of Power Metal Resources
plc, commented:
"As a strategic partner we have been enthused by the operational
progress made and announced to market by Kavango. The GBP1.94m
financing announced by Kavango today, on robust terms, is a further
positive step forward and provides the working capital needed to
support their ambitious exploration plans.
Power Metal is working with Kavango on the Kanye Resources
strategic joint venture where drilling is planned on both the South
Ghanzi - Kalahari Copper Belt (Copper, Silver focused) project and
the Ditau Camp (Rare Earths focused) project. The announcement by
Kavango today demonstrates their desire to accelerate drilling
across all projects including the joint venture projects.
Power Metal continues to hold its full position in Kavango, and
we have significant paper gain compared to the original GBP38,000
invested in April 2020. This demonstrates the value of holding both
project and equity interests and we are optimistic of continuing
growth in the value of our investment."
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 large scale metal
discoveries
The Company has a global portfolio of project interests
including precious, base and strategic metal exploration in North
America, Africa and Australia. Project interests range from early
stage greenfield exploration to later stage exploration prospects
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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