TIDMPOW
RNS Number : 1432S
Power Metal Resources PLC
06 July 2020
6 July 2020
Power Metal Resources plc ("Power Metal" or the "Company")
Financing Raises GBP1,000,000
Power Metal Resources plc (LON:POW) the AIM listed metals
exploration and development company is pleased to announce that it
has raised GBP1,000,000 through a subscription (the "Financing") to
support strategic expansion of exploration activities and
commercialisation of selected project interests.
HIGHLIGHTS
-- The Financing will support the acceleration of project
exploration across the Company's current portfolio of interests and
enable proactive and robust negotiations in respect of
commercialisation activities where the Company is seeking to
crystallise value and further bolster its 'balance sheet' (see
below for an outline of the Company's plans);
-- Power Metal has raised GBP1,000,000 at price of 0.475p per
share (the market closing mid-price at on Friday 3 July 2020)
through the issue of 210,526,316 new ordinary shares of 0.1 pence
each in the Company (the "Subscription Shares") ;
-- Each Subscription Share will have an attaching warrant with
an exercise period of two years from admission of the Subscription
Shares and exercisable at 0.75p per new ordinary share of 0.1 pence
each in the Company ("Ordinary Share"), creating 210,526,316 new
warrants (the "Financing Warrants") which are subject to an
acceleration clause whereby should the Company's volume weighted
average share price exceed 3.00p for 5 consecutive trading days,
the Company may at any time write to warrant holders providing 10
working days' notice of accelerated exercise, with 10 working days
thereafter for payment;
-- POW Board members have subscribed for a total of 31,710,526
Subscription Shares for an amount invested of GBP150,625, with Paul
Johnson CEO, investing GBP95,000 through his family company Value
Generation Limited;
-- The funds raised will increase the available working capital
(cash and listed financial instruments only) of the Company to over
GBP1.5 million.
Paul Johnson Chief Executive Officer of Power Metal Resources
plc commented:
"The GBP1 million raised today, when added to our existing
material working capital, changes the dynamic for Power Metal,
enabling us to boldly go forward and invest strongly in the avenues
we anticipate can create real value for the Company and its
shareholders.
We raised at the market price, which is notable, as the
protection of existing shareholders is important to us. Moreover,
board members have invested GBP150,625 in the Financing standing
alongside our shareholders to demonstrate belief in the vision we
have for the Company.
Our strategic aims underlying that vision are clear. We are
aiming for a major discovery or discoveries in our portfolio of
projects, not an easy feat but possible with the support of
shareholders and new investors in the manner we have seen today.
However, being reliant on the market for finance is not enough and
is perhaps the one area that makes junior resource companies
vulnerable. So, another strategic aim is to strengthen our working
capital rapidly by crystallising value from some of our interests
and building our Company 'balance sheet'. By doing so we are aiming
for financial self-sufficiency, another challenging target but one
we are striving for in earnest.
We aim to do things differently, to surprise the market with
innovation and a level of driven determination rarely matched by
our peers."
COMPANY PLANS POST FINANCING
BUSINESS AREA PROPOSED ACTION PLAN/AREAS OF POTENTIAL
NEWSFLOW
Arizona US - Alamo Power Metal is in discussions with the
Gold Project vendors of an option to acquire a Right
(Gold) to Earn-in to the Alamo gold project
in Arizona, USA.
We will seek to conclude discussions
at the earliest opportunity, and if successful
we will look to implement an early exploration
programme across the project.
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Australia JV - Victoria Joint Venture partners Power Metal (49.9%)
Goldfields and Red Rock Resources plc (50.1%) will
(Gold) seek to:
* Finalise a project database confirming the extent of
gold mineralisation and historical production across
all ten licence application areas
* Utilise database to further enhance and target
expeditious exploration plans in preparation for
licence grant
* Work proactively with our land management advisors
and Earth Resources Victoria to seek the grant of
priority licence application areas
* Continue review of the potential to list the JV
Company on a North American Stock Exchange
* Pursue proactively other crystallisation events in
respect of the interests
-----------------------------------------------------------------
Botswana - Ditau Camp Power Metal and its technical advisers
Project will seek to expedite the Ditau project
(Rare Earths) due diligence which if successful will
see the Company holding a 51% interest
and partner Kavango Resources plc (LON:KAV)
holding 49%.
On successful due diligence completion
the partners would work together to launch
a follow up exploration programme.
-----------------------------------------------------------------
Botswana - Molopo Farms Planning continues for drilling at the
Complex Molopo Farms Complex project. By expending
(Nickel - Copper - US$500,000 to undertake the drill programme
PGMs) Power Metal will earn a 40% direct project
interest (effective economic interest
50.96% as Power Metal also owns 18.26%
of Kalahari Key Mineral Exploration Pty
Ltd, the ultimate holding company of
the project).
Approval of the Environmental Management
Plan is the next step and when received
will allow final preparations including
contractor selection and mobilisation.
Drill targets and holes are defined and
the programme will seek the discovery
of a major nickel sulphide deposit.
-----------------------------------------------------------------
Cameroon Project Review work to be accelerated to outline
(Cobalt - Nickel) the next steps for the 100% owned project,
including the potential to undertake
additional exploration after the rainy
season and/or commercialisation of Power
Metal's 100% interest.
-----------------------------------------------------------------
The DRC - Kisinka Project Following the confirmation and extension
(Copper - Cobalt) of the 6.8km copper anomaly recently
and positive X-ray fluorescence results
indicating the presence of cobalt and
copper, the company is awaiting receipt
of assay results.
This will complete the exploration dataset
from the H1 2020 programme and help drive
the next steps, which are expected to
involve geophysics and further pitting,
leading to drilling of key targets at
this Power Metal 70% owned project.
-----------------------------------------------------------------
Tanzania - Haneti Project Power Metal will continue to work with
(Nickel - PGMs - Gold joint venture partner Katoro Gold plc
- Lithium) (LON:KAT) in respect of operational plans
for Haneti which is 25% held by Power
Metal, and 75% by Katoro Gold. Power
Metal may increase its holding to 35%
by paying Katoro Gold GBP25,000 in cash
by 31 August 2020.
Power Metal also notes the interest of
third parties in respect of Haneti and
notes therefore that third party involvement
in the project, if occurring, could materially
change the joint venture partners' plans.
-----------------------------------------------------------------
RELATED PARTY DISCLOSURE
The subscriptions by each of Andrew Bell, Paul Johnson and
Edmund Shaw in the Financing constitute related party transactions
under Rule 13 of the AIM Rules for Companies. The Directors (other
than Andrew Bell, Paul Johnson and Edmund Shaw) consider that,
having consulted with the Company's nominated adviser, the
subscription by Andrew Bell, Paul Johnson and Edmund Shaw in the
Financing is fair and reasonable in so far as shareholders are
concerned.
The shareholdings of Andrew Bell, Paul Johnson and Edmund Shaw
on Admission will be as follows:
Director Shares Currently Subscription Total Shares % of Total
Held Shares After Admission Issued Share
of Subscription Capital
Shares
Andrew Bell 17,770,000 4,210,526 21,980,526 2.88%
----------------- ------------- ----------------- --------------
Paul Johnson 33,600,000 20,000,000 53,600,000 7.02%
----------------- ------------- ----------------- --------------
Edmund Shaw 5,000,000 7,500,000 12,500,000 1.64%
----------------- ------------- ----------------- --------------
The warrant holdings of Andrew Bell, Paul Johnson and Edmund
Shaw on Admission will be as follows:
Director Number of Warrants Warrant Exercise Expiry Date
Price
Andrew Bell 10,000,000 1.00p 15/02/2021
------------------- ----------------- ------------
6,250,000 0.70p 17/12/2021
------------------- ----------------- ------------
* 4,210,526 0.75p 20/07/2022
------------------- ----------------- ------------
Paul Johnson 10,000,000 1.00p 15/02/2021
------------------- ----------------- ------------
6,250,000 0.70p 17/12/2021
------------------- ----------------- ------------
* 20,000,000 0.75p 20/07/2022
------------------- ----------------- ------------
Edmund Shaw 6,250,000 0.70p 17/12/2021
------------------- ----------------- ------------
* 7,500,000 0.75p 20/07/2022
------------------- ----------------- ------------
* Financing Warrants granted pursuant to the Financing
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the Subscription Shares to be
admitted to trading on AIM which is expected to occur on or around
20 July 2020 ("Admission"). Following Admission of the Placing and
Subscription Shares, POW's ordinary issued share capital will
comprise 763,216,542 ordinary shares of 0.1 pence each.
This number will represent the total voting rights in the
Company, and following Admission, may be used by shareholders as
the denominator for the calculation by which they can determine if
they are required to notify their interest in, or a change to their
interest in, the Company under the Financial Conduct Authority's
Disclosure and Transparency Rules. The new shares will rank pari
passu in all respects with the ordinary shares of the Company
currently traded on AIM.
PDMR ('Person Discharging Managerial Responsibilities")
DISCLOSURES
The notifications below, made in accordance with the
requirements of the EU Market Abuse Regulation, provide further
detail on the director's share dealing.
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name
1. Andrew Bell
---------------------------------- --------------------------------------------------------------
2 Reason for the notification
--------------------------------------------------------------------------------------------------
a) Position/status
1. Executive Chairman
---------------------------------- --------------------------------------------------------------
b) Initial notification
/Amendment Initial Notification
---------------------------------- --------------------------------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
--------------------------------------------------------------------------------------------------
a) Name
Power Metal Resources Plc
---------------------------------- --------------------------------------------------------------
b) LEI
213800VNXOUPHTX53686
---------------------------------- --------------------------------------------------------------
4 Details of the transaction(s): section to be repeated for (i)
each type of instrument; (ii) each type of transaction; (iii)
each date; and (iv) each place where transactions have been
conducted
--------------------------------------------------------------------------------------------------
a) Description of the ordinary shares of 0.1p each
financial instrument,
type of instrument
Identification code ISIN: GB00BYWJZ743
b) Nature of the transaction
1. Subscription for shares
2. Grant of Warrants pursuant to the Fundraising
---------------------------------- --------------------------------------------------------------
c) Price(s) and volume(s)
----------------------------------- ----------------------
Price(s) Volume(s)
----------------------------------- ----------------------
1. 0.475 pence 4,210,526
--------------------------------------------------------------------------- ----------------------
2. 0.75 pence 4,210,526
--------------------------------------------------------------------------- ----------------------
d) Aggregated information
- Aggregated volume Price(s) Volume(s)
1. 0.475 pence 4,210,526
----------
2. 0.75 pence 4,210,526
----------
- Price
e) Date of the transaction 6 July 2020
---------------------------------- --------------------------------------------------------------
f) Place of the transaction XLON
---------------------------------- --------------------------------------------------------------
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name
1. Paul Johnson
--------------------------------- --------------------------------------------------------------
2 Reason for the notification
-------------------------------------------------------------------------------------------------
a) Position/status
1. Chief Executive Officer
--------------------------------- --------------------------------------------------------------
b) Initial notification
/Amendment Initial Notification
--------------------------------- --------------------------------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
-------------------------------------------------------------------------------------------------
a) Name
Power Metal Resources Plc
--------------------------------- --------------------------------------------------------------
b) LEI
213800VNXOUPHTX53686
--------------------------------- --------------------------------------------------------------
4 Details of the transaction(s): section to be repeated for (i)
each type of instrument; (ii) each type of transaction; (iii)
each date; and (iv) each place where transactions have been
conducted
-------------------------------------------------------------------------------------------------
a) Description of the ordinary shares of 0.1p each
financial instrument,
type of instrument
Identification code ISIN: GB00BYWJZ743
b) Nature of the transaction
1. Subscription for Shares
2. Grant of Warrants pursuant to the Fundraising
--------------------------------- --------------------------------------------------------------
c) Price(s) and volume(s)
---------------------------------- -----------------------
Price(s) Volume(s)
---------------------------------- -----------------------
1. 0.475 pence 20,000,000
------------------------------------------------------------------------- -----------------------
2. 0.75 pence 20,000,000
------------------------------------------------------------------------- -----------------------
d) Aggregated information
- Aggregated volume Price(s) Volume(s)
1. 0.475 pence 20,000,000
-----------
2. 0.75 pence 20,000,000
-----------
- Price
e) Date of the transaction 6 July 2020
--------------------------------- --------------------------------------------------------------
f) Place of the transaction XLON
--------------------------------- --------------------------------------------------------------
1 Details of the person discharging managerial responsibilities
/ person closely associated
a) Name
1. Edmund Shaw
---------------------------------- --------------------------------------------------------------
2 Reason for the notification
--------------------------------------------------------------------------------------------------
a) Position/status
1. Non-executive Director
---------------------------------- --------------------------------------------------------------
b) Initial notification
/Amendment Initial Notification
---------------------------------- --------------------------------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
--------------------------------------------------------------------------------------------------
a) Name
Power Metal Resources Plc
---------------------------------- --------------------------------------------------------------
b) LEI
213800VNXOUPHTX53686
---------------------------------- --------------------------------------------------------------
4 Details of the transaction(s): section to be repeated for (i)
each type of instrument; (ii) each type of transaction; (iii)
each date; and (iv) each place where transactions have been
conducted
--------------------------------------------------------------------------------------------------
a) Description of the ordinary shares of 0.1p each
financial instrument,
type of instrument
Identification code ISIN: GB00BYWJZ743
b) Nature of the transaction
1. Subscription for Shares
2. Grant of Warrants pursuant to the Fundraising
---------------------------------- --------------------------------------------------------------
c) Price(s) and volume(s)
----------------------------------- ----------------------
Price(s) Volume(s)
----------------------------------- ----------------------
1. 0.475 pence 7,500,000
--------------------------------------------------------------------------- ----------------------
2. 0.75 pence 7,500,000
--------------------------------------------------------------------------- ----------------------
d) Aggregated information
- Aggregated volume Price(s) Volume(s)
1. 0.475 pence 7,500,000
----------
2. 0.75 pence 7,500,000
----------
- Price
e) Date of the transaction 6 July 2020
---------------------------------- --------------------------------------------------------------
f) Place of the transaction XLON
---------------------------------- --------------------------------------------------------------
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No.596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
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 discovery
of precious or base metals.
The Company has a portfolio including key interests in
Australia, Botswana, Cameroon, The DRC and Tanzania. The interests
represent large scale exploration projects targeting mainly cobalt,
copper, gold, nickel and platinum group metals. Project interests
range from early stage greenfield exploration to later stage drill
ready prospects.
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 metals exploration.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IOEUPUCWMUPUGUQ
(END) Dow Jones Newswires
July 06, 2020 06:36 ET (10:36 GMT)
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