TIDMPOW
RNS Number : 0557W
Power Metal Resources PLC
17 December 2021
17 December 2021
Power Metal Resources PLC
("Power Metal" or the "Company")
Warrant Update and Extension of Insider Warrants
Power Metal Resources plc (LON:POW) the London listed
exploration company seeking large scale metal discoveries across
its global project portfolio announces an update in respect of
Company share warrants.
Update Regarding Exercise of Warrants Expiring December 2021
On 17 December 2019 the Company issued warrants (the "December
2019 Warrants") as part of a financing undertaken by the Company
and as outlined below:
Description N umber of Warrants Exercise Price
Financing Warrants 175,000,000 0.70p
-------------------- ---------------
Advisor Warrants 17,500,000 0.70p
-------------------- ---------------
All December 2019 Warrants carried a two-year life to expiry
which ends today, 17 December 2021.
Power Metal can confirm that, save for 11,250,000 December 2019
Warrants held by current insiders, further details of which are
provided below (the "Insider Warrants"), all December 2019 Warrants
have been exercised.
The Company will be providing a breakdown of all other
outstanding warrants and options in its upcoming quarterly report
for the quarter ended 31 December 2021.
Warrant Exercise Proceeds and Working Capital Summary
In total the exercise of the December 2019 Warrants to date has
raised an additional GBP1.27 million for the Company and in total
all warrant exercises in 2020/2021 have raised circa GBP4.27
million.
This inflow of warrant monies enabled the Company to
aggressively build its business model in 2021 and secure the depth
and quality of project interests.
Notwithstanding this heavily active phase in 2021 Power Metal
has, at all times, maintained a robust working capital position.
Currently working capital, defined for this purpose as only cash
and listed investments, stands at circa GBP3.06 million.
It is important to note that the above working capital figure
excludes all unlisted Power Metal assets, including corporate
holdings and project level investment holdings ("Unlisted Assets").
Included within Unlisted Assets are the Company's pre-IPO interests
in First Class Metals Ltd, Golden Metal Resources Ltd, First
Development Resources Ltd and New Ballarat Gold Corporation
PLC.
To assist shareholders' understanding of the financial position
of the Company a breakdown of all the Company's unaudited assets
will be provided in the quarterly report for the quarter ended 31
December 2021.
Extension of Insider Warrants
As at 17 December 2021 the following Insider Warrants remained
outstanding:
Warrant Holder N umber of Warrants Exercise Price
Paul Johnson 6,250,000 0.7p
-------------------- ---------------
Ed Shaw 5,000,000 0.7p
-------------------- ---------------
The Insider warrants were issued following participation in the
December 2019 financing.
The Company is currently managing numerous exploration
programmes and corporate activities across its portfolio and is
engaged in various discussions relating to existing or potential
business interests with external third parties.
As a result, the December 2019 Warrants held by Paul Johnson
(Chief Executive Officer of Power Metal) and Ed Shaw (Non-executive
Director of Power Metal) cannot be exercised on the expiry date of
17 December 2021 and may be extended under the warrant instrument,
as outlined below.
Under the December 2019 Warrant instrument clause 2.3 provides
that should any December 2019 Warrant holder 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
Warrant holder 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 and Ed Shaw
to exercise the December 2019 warrants.
Reflecting the above the Company has extended the Insider
Warrants expiry date by three months to a new expiry date of 17
March 2022.
Related Party Note
The extension of the Insider Warrants held by Paul Johnson and
Ed Shaw as outlined above, have been treated as related party
transactions for the purposes of AIM Rule 13.
Scott Richardson Brown being the independent Director for the
purposes of the extension of the expiry date of the Insider
Warrants held by Paul Johnson and Ed Shaw considers, having
consulted with the Company's nominated adviser, SP Angel, that the
extension of the warrant expiry date to 17 March 2022 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 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.
Power Metal Exploration Programmes Underway/Results Awaited
Power Metal has exploration programmes completed or underway,
with results awaited, as outlined below:
Project Location POW % Work Completed Results Awaited
or Underway
Alamo Gold USA Earn-in Excavation of multiple Field results from
Project to 75% test pits and mapping on-site work programme.
& sampling.
---------- ---------- -------------------------- -------------------------
Athabasca Canada 100% Phase I field exploration Laboratory assay
Uranium completed results of samples
collected for uranium
and REEs
---------- ---------- -------------------------- -------------------------
Authier North Canada Earn-in Soil & rock sampling Laboratory assay
Lithium to 100% completed results of samples
collected
---------- ---------- -------------------------- -------------------------
Ditau Project Botswana 50% Preparatory exploration Field programme
work underway on findings and defined
target I10 leading drill targets for
to planned accelerated near term drilling.
drilling targeting
rare-earth elements
and base metals
---------- ---------- -------------------------- -------------------------
Kalahari Copper Botswana 50% Exploration programme Field programme
Belt underway across findings and defined
the South Ghanzi drill targets for
Project and further near term drilling
exploration at
the more recently
acquired South
Ghanzi Extension
and Mamuno licence
areas
---------- ---------- -------------------------- -------------------------
Molopo Farms Botswana 53% Kavango Option Results from various
to acquire an interest work activities
in local project underway as part
holding company. of the Kavango
Option fee payable Option
through defined
work programme
---------- ---------- -------------------------- -------------------------
Tati Gold/Nickel Botswana 100% Reverse circulation Laboratory assay
drill programme results awaited
completed
---------- ---------- -------------------------- -------------------------
Victoria Goldfields Australia 49.9% Ongoing exploration Results from field
across 848km(2) programme including
of granted exploration drill programme
licences underway
---------- ---------- -------------------------- -------------------------
Wallal Gold/Copper Australia 83.33%(1) Passive seismic Results awaited
Project and 2D seismic
processing work
programme completed
---------- ---------- -------------------------- -------------------------
(1) assuming all licences held by URE Metals Pty Limited are
granted as outlined in the Company's announcement of 19.11.21
resulting in the issue of First Development Resources Ltd shares to
URE vendors.
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END
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