Insider Warrant Update

Power Metal Resources PLC

25 April 2023

 

25 April 2023

Power Metal Resources plc ("Power Metal" or the "Company")

Insider Warrant Update

Power Metal Resources plc (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a warrant update.

The Company would refer readers to its announcement of 24 October 2022 wherein warrants to subscribe for new ordinary shares of 0.1p in Power Metal at an exercise price of 0.75p per share ("Insider Warrants"), held by Company directors, could not be exercised at the original expiry date of 20 July 2022 ("July 2020 Warrants") and were extended to an expiry date of 21 April 2023 as a result.

The Insider Warrants were issued to directors following their participation in a Company financing in July 2020.

The Insider Warrants are held by Paul Johnson, former Director and Chief Executive Officer of the Company and Ed Shaw, Non-executive Director (together the "Insiders") as follows:

Warrant Holder	Number of Warrants	Exercise Price
Paul Johnson	20,000,000	0.75p
Ed Shaw	7,500,000	0.75p

Current Status of the Insider Warrants

The Insider Warrants remain valid as the Insiders remain unable to exercise at this time due to ongoing proactive exploration and corporate activities, reflecting Ed Shaw's director position and Paul Johnson's continuing support to the Company as outlined in the announcement of 10 March 2023.

This exploration and corporate activity includes, but is not limited to:

-     Exploration results expected to be released from the Molopo Farms Complex Project and Tati Project in Botswana and the Berringa Project in the Victoria Goldfields, Australia, and

-     Developments in respect of the Company's Athabasca uranium interests in Saskatchewan, Canada.

-     Advanced spin-out IPOs and disposal activities across multiple project interests.

Under the July 2020 Warrant instrument Clause 2.3 provides that should any July 2020 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.

It is the Insiders' intention to exercise the warrants as soon as they are free to do so however given the level of activity within the Company this may not be possible for some time. 

The Insider Warrants remain available to exercise under Clause 2.3 however the Company has extended the expiry date on the warrants to 21 October 2023 to reflect the limitations on exercise as described above.  Should the Insider Warrants be unexercised on 21 October 2023, the Insiders must either give an irrevocable commitment to exercise the Insider Warrants when next able to so do, or the Board may consider a further extension.

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.

Sean Wade, Scott Richardson Brown and Owain Morton being the independent Directors 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 21 October 2023 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
Sean Wade (Chief Executive Officer)	[phone]
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	[phone]
SI Capital Limited (Joint Broker)
Nick Emerson	[phone]
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	[phone]

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 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.

 

END