TIDMPOW
RNS Number : 7970F
Power Metal Resources PLC
12 July 2023
12 July 2023
Power Metal Resources PLC
("Power Metal" or the "Company")
Acquisition of Authier North Lithium Project
Issue of Equity for Acquisition and Professional Advisory
Fees
Power Metal Resources PLC (LON:POW), the AIM listed metals
exploration and development company, announces the Company has
negotiated early completion of the Authier North Lithium Project
Earn-In to a 100% interest (the "Earn-In"). The Company also
announces a further issue of equity in lieu of professional
fees.
EARLY COMPLETION OF AUTHIER NORTH EARN-IN
The Earn-in was originally outlined in the Company's
announcement dated 16 July 2021 which may be viewed through the
following link:
https://www.londonstockexchange.com/news-article/POW/agreement-canadian-lithium-properties/15061434
The Earn-in Agreement concerns two properties, Authier North and
Duval East (the "Properties"). The Properties are situated in the
prolific Val'd'Or mining camp approximately 45km northwest of the
city of Val-d'Or and approximately 500km northwest of Montreal,
Quebec.
Power Metal has to date satisfied cash and POW equity payments
on signing of the original agreement and the following year's
payments together with the year 1 exploration spend commitment. The
Company has now agreed with Eagle Ridge Mining Limited based out of
Barrie, Ontario, Canada (the "Vendor"), that all further
commitments to secure the 100% Earn-In will be satisfied in full
with the following balancing cash and equity payments as outlined
in the original Earn-in:
- CAD$25,000 in cash to the Vendor
- The issue of CAD$75,000 of shares to the Vendor
(GBPGBP43,941). At the previously agreed Power Metal ten-day volume
weighted average price of 0.705835p (immediately prior to Earn-In
completion) this equates to the issue of 6,225,392 new Power Metal
ordinary shares of 0.1p (the "Earn-In Shares)."
- The year 2 and 3 exploration commitments totalling CAD$50,000
and CAD$100,000 have been waived.
There is an existing 1.00% net smelter royalty ("NSR") over the
Properties that will remain in place. In addition, as per terms of
the original Earn-In Agreement Power Metal will grant to the
Vendors a further 1.25% NSR (the "Vendor NSR") and 0.5% of the
Vendor NSR may be bought back by Power Metal Canada at any time for
a cash payment of CAD$500,000. In total therefore prior to any
buyback, the total NSRs amount to 2.25% over the Properties.
Upon completion of administration in relation to the Earn-In,
the ownership of the Properties will be held through Power Metal's
wholly owned UK subsidiary, ION Battery Resources Limited and its
local operating subsidiary in Canada.
ISSUE OF EQUITY FOR PROFESSIONAL FEES
Power Metal is also to settle professional fees totalling
GBP65,000 through the issue of 9,208,951 new ordinary shares of
0.1p at an issue price of 0.705835p (the "Fee Shares"). 3,541,904
Fee Shares have been issued to SP Angel Corporate Finance LLP, the
Company's nominated adviser and joint broker, in lieu of fees for
value of GBP25,000. The remaining 5,667,047 Fee Shares have been
issued to another corporate adviser in lieu of fees for value of
GBP40,000.
The services provided and settled by the Fee Shares are not
specifically related to the Earn-In.
Sean Wade, Chief Executive Officer of Power Metal Resources plc,
commented:
"I am delighted to secure a 100% interest in the Authier North
Project for Power Metal through this transaction which sees an
expedited completion of the Earn-in. Given the importance of
lithium in the future growth and development of green technology
globally, it is important to retain exposure to this metal.
With the Earn-in of Authier North now complete pending payment
of consideration, we are also able to move forward with commercial
plans for ION Battery Resources Ltd which will now hold this 100%
interest and further on that to follow in due course."
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 6,225,392 Acquisition Shares
and 9,208,951 Fee Shares to be admitted to trading on AIM which is
expected to occur on or around 18 July 2023 ("Admission"). The
Acquisition and Fee Shares will rank pari passu in all respects
with the ordinary shares of the Company currently traded on
AIM.
Following Admission, the Company's issued share capital will
comprise 2,080,106,256 ordinary shares of 0.1p each. This number
will represent the total voting rights in the Company and 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.
For further information please visit
https://www.powermetalresources.com/ or contact:
Power Metal Resources plc
Sean Wade (Chief Executive Officer) +44 (0) 20 3778 1396
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
BlytheRay (PR Advisors) + 44 (0) 20 7138 3204
Tim Blythe
Megan Ray
NOTES TO EDITORS
Power Metal Resources plc - Background
Power Metal Resources plc (LON:POW) is an AIM listed metals
exploration company which finances and manages global resource
projects.
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
grow the Company, or may be returned to shareholders through share
buy backs, dividends or in-specie distributions of assets.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IOERTMPTMTABMBJ
(END) Dow Jones Newswires
July 12, 2023 04:55 ET (08:55 GMT)
Power Metal Resources (AQSE:POW.GB)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Power Metal Resources (AQSE:POW.GB)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024
