Results for the Year Ended 30 September 2022

RNS Number : 9275R

Power Metal Resources PLC

06 March 2023

 

6 March 2023

Power Metal Resources plc

("Power Metal" or the "Company")

Audited Financial Results for the Year Ended 30 September 2022

Power Metal Resources plc (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announcesitsconsolidated audited results for the year ended 30 September 2022, for the Company and its subsidiaries (together the "Group").

Highlights from the year under review:

Operational

· The year saw the Company complete a number of new acquisitions to advance its global project portfolio whilst in parallel continue to develop and strengthen its existing business interests.

· The dual pathway of proactive exploration of retained project interests continued across multiple projects, alongside the advancement of corporate activities seeking the outright disposal or planned spin-out Initial Public Offering ("IPO") of certain project interests.

· In Canada, during the financial year and thereafter, the Company continued to acquire new uranium project interests through direct staking and existing project acquisitions in the Athabasca Basin region of Saskatchewan, reflecting the Company's view that the uranium commodity is to experience a renaissance due to global expansion of nuclear power generation.

· In July 2022, First Class Metals PLC (LON:FMC) listed in London, with Power Metal holding a c.28% interest valued at c.£1.8m on listing. FMC holds the former Power Metal Schreiber-Hemlo project interests, sold to FCM for equity in September 2021.

· In November 2021, the Company completed the acquisition of the Pilot Mountain Project, a tungsten focused project and completing the four-project portfolio of Golden Metal Resources PLC ("GMT") which raised £750,000 in pre-IPO financing in December 2021 and during the year continued its IPO preparatory work.

· The Company confirmed its continuation into year two of the Authier North/Duval East lithium project earn-in to 100% in July 2022.

· A diamond drill programme was conducted at the Silver Peak project in British Columbia, Canada, demonstrating bonanza grade silver at the project.

· In Africa, a diamond drill programme was also conducted in late 2021/early 2022 at the Haneti Project in Tanzania targeting nickel, copper, and platinum group elements (held with joint venture ("JV") partner Katoro Gold PLC (LON:KAT). The programme provided additional geological information to enable the JV partners to review and consider next steps exploration.

· Following exploration work at the Kanye Resources JV in Botswana (Ditau and Kalahari Copper Belt Projects), a conditional disposal of the Company's 50% JV interest back to partner Kavango Resources PLC (LON:KAV) was announced.

· Power Metal signed a conditional acquisition of 56.7% of the shares in Kalahari Key Mineral Exploration Pty Ltd ("KKME"), holder of the Molopo Farms Complex Project ("MFC Project") in Botswana.  Moving loop electromagnetic surveys conducted at the MFC Project in summer 2022 confirmed a major conductor at the T1-6 target where nickel and PGEs had previously been identified in the 20/21 drill programme and led to the accelerated launch of a follow up diamond drill programme at T1-6 and other targets in September 2022.

· Reverse circulation drilling at the Tati Project ("Tati") in Botswana identified near surface high-grade gold and follow on work confirmed an 8km gold-in-soil anomaly at Tati, leading to the staking of a further prospecting licence to cover the full anomaly footprint.

· In Australia, October 2022 saw the completion of the acquisition of First Development Resources Pty Ltd and its entire gold/copper focused Western Australian exploration interests.  This was followed up by the acquisition of the Selta Project then targeting uranium and rare earth elements in the Northern Territory of Australia. The two acquisitions completed the portfolio of First Development Resources PLC, a UK holding company which raised £1,125,000 in pre-IPO financing and during the year undertook IPO preparatory work.

· Finally in Australia, the Company submitted two licence applications in South Australia comprising the Wilan Project then targeting Olympic Dam style mineralisation. During the year one of the licence applications was granted, with a second licence granted post year end.

· The Company closed the financial year with a focus on delivering advanced exploration programmes across its to be retained exploration portfolio, and with acquisition restricted to additional uranium and lithium focused opportunities.

Financial

· Total comprehensive loss for the year to 30 September 2022 of £137k (2021: loss of £622k). The reduction in loss from September 2021 is in part due to the capital contribution balance recognised during the year. The capital contribution balance arose on the completion of the capital reorganisation of the Golden Metal Resources Plc group;

· Pre-non-controlling interest total equity of £ 11.7m at the year-end (2021: £6.3 million); and

· Raised £2,070,000 (before issue costs) in new equity financing during the financial year, from a combination of new and existing shareholders, including the Directors. An additional £1,055,978 of cash received by the Company during the year from exercises of Power Metal share warrants and £25,000 of cash received by the Company during the year from exercises of Power Metal share options. £2,148,307 of shares were issued in relation to acquisitions in various investments and projects.

Post-year end

In October 2022, the Company acquired Badger Lake Uranium Property ("Badger Lake") through claim staking.  Badger Lake covers an area of 16.71km² within the prolific Athabasca Basin. Badger Lake is surrounded by claims held by uranium focussed companies including Orano SA, Hathor Exploration and NexGen Energy Ltd.

In October 2022 the exploration programme over the 100%-owned Thibault Lake, Clearwater and Tait Hill properties completed successfully, resulting in multiple locations of anomalous radioactivity noted across all three properties with rock sample assay results currently awaited.  As a result, the Tait Hill property was expanded by 32.42km2 to 110.56km2, based on work results and to include the full extent of the Mullis Lake Target as well as an anomalous lake sediment result.

As part of Owain Morton's appointment as Non-executive Director on 10 October 2022, Mr Morton was issued with 5 million options to subscribe for new Power Metal Ordinary Shares of 0.1p each at an exercise price of 3.25 pence with a life to expiry of 3 years. The Director Options are subject to a minimum service period of 6 months and may not be exercised until the volume weighted average price of Power Metal shares trades at 5.0 pence for ten consecutive days.

On 12 October 2022 the Company created an Advisor Warrant Pool comprised of 25m warrants over new ordinary shares of 0.1 pence, this was to reflect the growth of the network of advisors and to ensure that those providing valuable support to the Company can share in the exposure to equity upside. The exercise terms of the new warrants are the same as those created for those awarded to team members of the Company in 2022, principally, to acquire new Ordinary Shares at an exercise price of 3.25p per share.

The Adviser Pool Warrants have a life to expiry ending 12 October 2025, save that should the volume weighted average share price ("VWAP") of the Company exceed 10.0p for five consecutive trading days, Power Metal shall have the right to serve a ten-business day notice on the Adviser Pool warrant holders to exercise and pay for their allocation, or they may be cancelled by the Company. The Advisor Pool Warrants are subject to a share price performance condition and cannot be exercised until the VWAP of the Company has exceeded 5.0p per Ordinary Share for ten consecutive trading days.

In October 2022 the Company confirmed extension of insider Warrants held by Paul Johnson and Ed Shaw, of 20,000,000 and 7,500,000 respectively, and the Company has extended the expiry date on the Insider Warrants to 21 April 2023 to reflect the limitations on exercise.

On 18 November 2022, the Group concluded the 58.7% share capital purchase of Kalahari Key Mineral Exploration Pty Limited ('KKME') for total consideration of £807,348 consisting of 46,134,171 new ordinary shares in the Company at a share price of 1.75 pence and warrants with a total fair value of £35,300.

Additionally, in the event, within 2 years, that Kalahari Key or the MFC Project is sold for US$10million or greater, or a joint venture agreement is signed where the potential project spend is US$10million or greater, Power Metal will issue further warrants over 46,134,171 new Ordinary Shares at an exercise price of 5.0p with a 2 year life to expiry. As at 30 September 2022 the above conditions were deemed unlikely to occur and therefore no contingent consideration recognised.

KKME holds a 100% interest in the Molopo Farms Complex Project, where a large scale nickel platinum-group metal discovery is being targeted in southwestern Botswana.

The acquisition meets the definition of a business combination and will be accounted for using the acquisition accounting method in accordance with the Group's accounting policies. 

Details of the fair value of identifiable assets and liabilities acquired purchase consideration and goodwill are as follows:

	Fair value £'000's
Exploration and evaluation of assets	1,252
Property, plant and equipment	8
Cash and cash equivalents	64
Trade and other payables	(363)
Total fair value	961
NCI (12.29%)	118
Consideration	843
Goodwill	-

There were no associated transaction costs.

In November 2022 the Company disposed of its 50% interest in Kanye Resources JV. Kavango PLC acquired all Power Metal interests in the Kanye JV through the issue to Power Metal of 60 million Kavango shares and 60 million warrants to subscribe for new Kavango ordinary shares with a 30-month life to expiry from the 8 July 2022 transaction date (30 million at an exercise price of 4.25p and 30 million at an exercise price of 5.5p). Also, Power Metal 15 million variable price warrants with a six-month life to expiry, with a minimum exercise price of 3p and an actual exercise price at a 15% discount to the volume weighted average share price on the date of exercise. On completion of this transaction Power Metal held 69.5million Kavango shares, representing 9.85% of Kavango's issued share capital.

In November 2022 the Company acquired the North Wind Lithium Project by staking. The staking was completed through Power Metal's wholly owned Canadian subsidiary, Power Metal Resources Canada Inc. Following a detailed review of several publicly available provincial government geological databases and reports, Power Metal have staked a total of 5,788.5-hectares over a 16km long trend of highly anomalous lithium-in-lake sediment results. The North Wind Lithium Project was considered by the Company to be prospective for lithium (Li), caesium (Cs), and tantalum (Ta) ("LCT") bearing pegmatite occurrences.

In December 2022 the Company announced a merger of its Wilan Project ("Wilan" or the "Project"), located in South Australia, with a number of other Australian exploration interests (the "Merger"). The Merger will create a new Australian exploration company and provide Power Metal with exposure to the world class Mount Isa copper belt located within Queensland, Australia. The Wilan Project is comprised of two exploration licences ("ELs") which cover a total area of 1,994km2, held within Power Metal Resources Australia Pty Ltd ("POW Australia"), which is a wholly owned subsidiary of Power Metal Resources PLC.

A heads-of-terms agreement (the "Agreement") was signed to combine POW Australia (100% owner of the Wilan Project) with two companies holding a 100% interest in a portfolio of two granted exploration licences and four licence applications covering 1,507km2 in the Mount Isa copper belt of Queensland, Australia (the "Queensland Projects"). The Queensland Projects are held by two private Australian companies, RAB Resources Pty Ltd ("RAB Resources" or "RAB") and New Horizon Metals Pty Ltd ("New Horizon" or "NHM"). A new company ("NewCo") will acquire outright the shares in POW Australia, RAB Resources and New Horizon (the "Merger Parties"). Following the Merger Power Metal Resources PLC will hold a 20% interest in NewCo.

On 15 February 2019 Paul Johnson, Chief Executive Officer of the Company was awarded 13,613,929 options to subscribe for new ordinary shares of 0.1 pence each in the Company at an exercise price of 1.0p ("Director Options").  The Director Options had an original expiry date of 15 February 2022, which was subsequently extended to 15 May 2022 and then to 31 December 2022. Paul Johnson is unable to exercise the Director Options due to activities underway within the Company which preclude exercise at this time.

In addition, in the December 2019 financing undertaken by the Company participants received warrants to subscribe for new ordinary shares of 0.1p in Power Metal at an exercise price of 0.7p per share with an expiry date of 17 December 2021 ("December 2021 Warrants"), which warrant exercise period was subsequently extended to 17 March 22, then 17 June 2022 and lastly to 31 December 2022 (see announcement 17 June 2022). Paul Johnson, Chief Executive Office, and Ed Shaw, Non-Executive Director held 6,250,000 and 5,000,000 December 2021 warrants respectively (the "Insider Warrants").

It is the Directors' intention to exercise the Insider Warrants and the Director Options as soon as they are able to do so, and the Directors expect to be in a position to exercise in the foreseeable future.  Reflecting this the Company granted a final extension to the Insider Warrants and Director Options to 30 June 2023 and should they be unexercised by or on that date, they will lapse (the "Final Extension").

In January 2023 the Company announced the acquisition of the 4,222-hectare Doerksen Bay graphite Project ("Doerksen Bay" or the "Project") located in mining friendly Saskatchewan, Canada. Power Metal also announced the formation of ION Battery Resources Limited, a new UK private battery metals and minerals focused vehicle.

As consideration for the 100% acquisition of the Project, Power Metal paid the Vendors a total of £37,500 (the "Consideration"). The Consideration is payable through the issue of 2,500,000 Power Metal new ordinary shares of 0.1p each ("Consideration Shares") at an issue price of 1.5p per share. The Consideration Shares will be subject to a 4-month lock-in.

In January 2023 Power Metal announced and completed a financing raising £900,000 for the Company, for general working capital purposes, and to support the planned exploration activities at the Tati gold project in Botswana and the Athabasca Basin region uranium properties in Saskatchewan, Canada.

In January Power Metal announced the recommencement of diamond drilling at the Berringa gold mine licence in Victoria, Australia and in February 2023 the renewal of the licence for a further 5 years, and a drilling update confirming the presence of visible gold in the first three holes completed.

In February 2023 Power Metal announced the acquisition of four additional uranium properties in the Athabasca Basin region of Saskatchewan, Canada, taking the total licence footprint to 965.73km² over 16 properties (including Reitenbach and E-12 properties that are the subject of conditional disposal agreements).

Scott Richardson Brown and Ed Shaw previously received 5,000,000 options each to acquire new ordinary shares in the Company of 0.1p at an exercise price of 1.0p ("Director Options").  The Director Options had an original expiry date of 19 February 2023, however in February 2023 the company granted a six-month extension to a new exercise date of 19 August 2023.

Notice of Annual General Meeting and Distribution of Accounts to Shareholders

The Company's Annual General Meeting ("AGM") will take place at 11.00am on 30 March 2023 at Suite 53, Temple Chambers, 3-7 Temple Avenue, London, EC4Y ODT.  The Company's Annual Report and Accounts for the year ended 30 September 2022 will be posted to shareholders this week. Copies of the Notice of AGM and the Annual Report and Accounts will also be available on the Company's website at   www.powermetalresources.com   in due course.

Introduction

The mineral resource exploration sector is highly cyclical and during the financial year has experienced a typical cyclical downturn brought about by a variety of factors. These include the medium-term impact of global policies to address the COVID-19 pandemic, the war in Ukraine and the uncertainty caused by inflationary pressures and interest rate policies.

The overwhelming uncertainty and unstable conditions during the financial year provided exactly the backdrop needed for a high-quality portfolio of exploration interests to be gathered at modest cost and advanced, which is precisely what Power Metal has been able to achieve.

Our focus now turns to value generation through ongoing exploration of retained interests, and through completion of those corporate activities in process, or planned.  The next financial year we intend to report mainly on that value generation, rather than undertaking further acquisitions and therefore the business will move to a distinctly new phase in its life cycle.

Operations Review

Projects

Africa

Botswana

(Tati Project)

In October 2021 Power Metal commenced reverse circulation ("RC") drilling at the Tati Gold Project, with a 1,062m programme, results from which were released in April 2022 confirming near surface gold mineralisation including up to 3m at 5.17g/t gold from 9m downhole.

The confirmation of geological formations, and evidence of a strong gold-in-soil anomaly inspired the Company to apply for an additional licence to cover the full extent of the anomaly (licence granted April 2022).

A further site visit and ground mapping in July 2022 confirmed extensive gold workings, more extensive than previously thought and two fines' dumps representing waste material from historical mining activities at the Cherished Hope gold mine within the project boundaries. 

A further RC drilling programme was commenced in August 2022 with 490m of drilling alongside sampling of the fine's dumps. The fines dumps sampling confirmed residual gold at an average of 0.94g/t, which is amenable to processing at a nearby processing facility, subject to contract and local approvals.

(Molopo Farms Complex)

In November 2021, Kavango Resources PLC (LON:KAV) secured an option to acquire the shares in Kalahari Key Mineral Exploration Pty Ltd ("KKME"), the holder of the Molopo Farms Complex Project ("MFC Project") in southwest Botswana (subject to Power Metal's 40% interest by virtue of a previously completed earn-in). This option was subsequently extended, but ultimately did not result in KAV proceeding, as announced in March 2022.

Instead, in May 2022, Power Metal agreed a conditional acquisition of 56.7% of KKME shares from KKME shareholders, for £807,348 consideration payable in new Power Metal ordinary shares of 0.1 pence each at a price of 1.75p and attaching warrants over 46,134,171 new ordinary shares at a 3.5p exercise price with a 2-year life. The conditionality was principally the receipt of local regulatory approvals which were received, and the transaction completed in November 2022. Following completion and the reversal of Power Metal's earn-in to a 40% interest into the MFC Project, the Company held an 87.71% interest in KKME which wholly owns the MFC Project.

Moving loop electromagnetic surveys conducted in summer 2022 revealed a number of large magnetic conductors across 4 targets, with the first announced in August 2022 leading to the launch of an expedited 2,600m drill programme in September 2022.

(Kanye Resources Joint Venture ("JV"))

Exploration work continued across the Kanye Resources JV held 50% by Power Metal and 50% by JV partner KAV with a diamond drill programme commencing at the Ditau project in January 2022 and target identification work for planned drilling at the Kalahari Copper Belt project.

In July 2022, Power Metal announced a conditional agreement to dispose of its 50% interest in the Kanye Resources JV to Kavango Resources in a transaction which completed in November 2022 following the publication of a new market prospectus by Kavango Resources.

Consideration for the disposal included 60m KAV shares at a price of 0.02 pence per share, valued at £1.08m on the date of completion, together with KAV warrants and a 1% net smelter return royalty across the Kanye Resources properties.

Tanzania

In January 2022, the Company announced the commencement of diamond drilling at its 35% owned Haneti Project in Tanzania with 65% JV partner Katoro Gold PLC (LON:KAT). The results from the 900m drill programme were announced in May 2022 confirming the intersection of significant sequences of altered ultramafic and mafic rocks. The drilling demonstrated nickel, copper, gold, and platinum group elements ("PGEs") albeit not in economic quantities, however the information gathered enabled the JV partners to plan for the next exploration steps at Haneti.

Concurrent with the drill programme, rock sampling undertaken at the Babayu lithium prospect highlighted significant lithium and tantalum prospectivity leading to the development of a lithium consolidation strategy, covering existing lithium applications and reviewing potential partnerships with local licence holders.

Australia

First Development Resources

In October 2021, Power Metal announced the acquisition of a portfolio of precious and base metal focused projects in Western Australia held by private Australian company First Development Resources Pty Ltd ("FDR Australia"). FDR Australia was acquired outright by First Development Resources PLC ("FDR UK") for consideration including a deemed value of £686,667 in Power Metal shares and with a plan to list FDR UK on the London capital markets.

Subsequently in November 2021, FDR UK also conditionally acquired the Selta Project in the Northern Territory of Australia, through the 100% acquisition of URE Metals Pty Ltd, a private Australian subsidiary, payable through the issue of £500,000 deemed equity value in FDR UK. The conditions for acquisition were all satisfied in February 2022.

Further transactions undertaken during the year included the acquisition of the Ripon Hills project in Western Australia and restructuring of the FDR group to simplify the listing process.

During the course of the financial year various corporate work streams were undertaken including pre-IPO preparations, notably the completion of a £1,125,000 pre-IPO financing announced in June 2022.

In addition, during the year various exploration work was undertaken. At the Wallal Project a desktop study was finalised, and three magnetic bullseye anomalies were identified within the project area. The Eastern anomaly will be targeted in the Phase I diamond drilling programme planned to commence immediately post admission. To facilitate site works the pre-requisite Heritage Clearance Survey was completed in Q3 2022.

The desktop studies for the Braeside West and Ripon Hills Projects were completed during 2022 which identified multiple gold and base metal targets for further investigation.

At the Selta Project, a desktop study completed during 2022 identified multiple uranium and rare-earth element targets and the geology at Selta is interpreted to be compositionally similar to that which underpins the nearby Nolans Deposit currently being developed by ASX listed Arafura Resources.

Wilan Project

In October 2021, Power Metal announced its wholly owned Australian subsidiary, Power Metal Resources Pty Ltd, had lodged two licence applications covering 1,994km² in the Gawler Craton region within South Australia.

The originally named Gawler Project, subsequently renamed the Wilan Project, saw the first 999km² licence granted in September 2022 and the identification of an Iron Oxide Copper Gold ("IOCG") target within the granted exploration licence area.

New Ballarat Gold Corporation (NBGC)

Power Metal holds a 49.9% interest in NBGC with partner Red Rock Resources PLC (LON:RRR). NBGC holds a 100% interest in Red Rock Australasia Pty Ltd ("RRAL") which itself holds a portfolio of granted exploration licences and licence applications in the Victoria Goldfields region in the State of Victoria, Australia.

The original applications were submitted in early 2020, and during the financial year RRAL saw a number of licence applications granted, such that by the financial year end 15 granted licences covered a footprint of some 1,841km² and 5 licence applications awaiting grant of 493km².

An operating team based in Ballarat, Victoria, conducted various exploration work during the year including an inaugural diamond drill programme in December 2021, with results demonstrating gold bearing structures and evidence of gold mineralisation across the target areas.

In July 2022, the Company announced the conditional acquisition by RRAL of the licence including the historic Berringa gold mine with conditions satisfied and the transaction completed in September 2022.

North America

Silver Peak

Power Metal has a 30% interest in the Silver Peak project in British Columbia, Canada, following completion of an earn-in in the 2021 financial year.

In August 2021 a total of 19 short core holes were completed targeting high-grade extensions of the Victoria Vein. 10 out of the 19 holes drilled returned >1000g/t silver assays with significant copper (Cu), zinc (Zn), lead (Pb) and antimony (Sb) credits. Following the initial announcement of results in November 2021, overlimit assays were completed for Cu, Zn, Pb and Sb. Final silver equivalent assays were received and reported in December 2021 which included a highlight interval of 0.76m 10,131g/t silver equivalent.

In August 2022 the Company had its Exploration Manager conduct a one-day site visit to the project. He was accompanied by Michael Nugent who represents the majority ownership group. Due to the complex nature of the surrounding topography, the site visit was completed in order to gain a better understanding of the opportunity, and challenges that Silver Peak faces during further exploration and next stage exploration plans.

Further work was undertaken during the course of the year to review potential commercial options for the project.

Authier North

In 2021 Power Metal signed an agreement to earn into a 100% interest in the Authier North project. 

Following on from a ground exploration programme in March 2022 the Company engaged Dahrouge Geological Consultant Ltd to complete an independent technical review of the project. This review identified two target areas for further investigation and exploration plans have been developed for next stage ground exploration.

The Company successfully satisfied the year one option terms and entered into year two of the agreement on 12 July 2022.

Athabasca Basin

During the year the Company continued to build its portfolio of Athabasca Basin, Saskatchewan, Canada, focused uranium properties. This portfolio was originally built in 2021 utilising internal technical resources to identify prospective new opportunities for acquisition via direct low-cost mineral claim staking.

The original portfolio of seven uranium focussed properties was expanded multiple times in 2022 with the first being July 2022 following the acquisition of the Reindeer Lake, Porter Lake and Old Woman Rapids from an established prospector.

Furthermore, via direct mineral staking, the Company acquired the Durrant Lake property located in the eastern side of the Athabasca Basin in August 2022. Durrant Lake is bordered on three sides by claims held by uranium focused companies including Orano SA, Denison Mines Corp and ISO Energy Ltd. Shortly after, in September 2022, the company staked a further project located inside the basin called the Badger Lake project bringing the portfolio's total to 11 properties.

During summer 2022, Power Metal undertook ground exploration at three properties (Clearwater, Thibault Lake and Tait Hill).

In August 2022, Power Metal announced the conditional disposal of the Reitenbach property to Teathers Financial PLC for a disposal value of £360,000 and to form the listing asset for that vehicle. Teathers Financial PLC will be renamed Uranium Energy Exploration PLC ("UEE") and listed on a preferred stock exchange in London. The conditions of the disposal included the successful listing of UEE.

As at the year-end, Power Metal held 11 properties (including the conditionally disposed Reitenbach and E-12 properties) covering approximately 780km² in and surrounding the Athabasca Basin.

Schreiber-Hemlo / First Class Metals

The Company announced the completion of the sale of its 100% owned Schreiber-Hemlo interests to First Class Metals PLC (LON:FCM) in October 2021 for £1m.

In July 2022, FCM successfully listed on the London stock exchange and Power Metal's holding on listing was valued at circa £1.8m.

Golden Metal Resources

In November 2021, the Company completed the acquisition of the Pilot Mountain tungsten Project. This acquisition completed the four-project portfolio of Golden Metal Resources PLC ("GMT") which is focussed in Nevada, USA. The Pilot Mountain transaction was further bolstered by the subsequent acquisition of the longer-term tail-benefit included in the original consideration from the vendor, fellow AIM-listed Thor Mining PLC in January 2022.

Following the acquisition of Pilot Mountain and during the year, GMT undertook pre-IPO preparations including the completion of a £750,000 pre-IPO financing which diluted the Company's interest in GMT to 83.13%.

In parallel with the pre-IPO work, GMT completed various exploration work programmes across its Nevada portfolio which included a 3D induced polarisation ("IP") geophysical survey over the Pilot Mountain Project, a high-resolution soil geochemical survey over the Garfield project which includes a total of 453 individual sample points. Further minor work streams at the Golconda Summit project were completed including rock sampling as well as the completion of permitting for mechanised trenching. Furthermore, GMT obtained access to a historical soil geochemical survey completed over Golconda Summit which included 741 individual samples.

The results from both the IP geophysical survey and Garfield soil geochemical survey are pending. The results, once received by GMT, will be compiled, analysed and released when ready. 

New Opportunities

Power Metal Resources

During the financial year Power Metal continued to review new opportunities and completed a number of acquisitions as outlined above and following the year end.

The focus of the Company post year end is acquisitions focused on uranium or lithium opportunities.

Corporate Social Responsibility ("CSR")

The Company maintains a focus on CSR through internal policies and our approach to external operational activities.

During the year and after the year end the Company developed its internal environmental, social and governance ("ESG") policies and procedures to codify many of the practices in place at the Company and to introduce a number of new initiatives.

The Company will continue to prudently invest in the regions in which we have business activities, in support of the communities where we operate. As an early-stage company, Power Metal is keen to employ workers from the areas in which we operate, and to operate in a safe, responsible, and reasonable manner. 

As certain projects mature, we would expect our community engagement to become more extensive in line with the level of operational activities.

Financial Review

The Group recorded an audited total comprehensive loss after tax for the year to 30 September 2022 of £ 137k   (2021: loss of £622k) with the increase reflecting the increased administration costs pertaining to increased business activities and notably those in connection with the costs of planned spin-out IPO listings. The loss per share from continuing activities was  0.15p   (2021: 0.05p).

The Group's exploration activities during the financial year under review were funded through the issue of shares to raise cash. In aggregate, new ordinary shares were issued during the financial year, raising a total of £2.07 million from fundraising, £1.06 million from the exercise of warrants, £0.03 million from the exercise of options and £2.15 million relating to the acquisitions of various investments and projects.

We ended the financial year with a cash balance of £ 1.56 million  (2021: £1.28 million), which was enhanced post-financial year end by a financing in January 2023 raising an additional £900,000, before expenses.

Cash balances held at the year-end are supplemented by listed company shares and warrants (cash equivalents), which represent a further pool of accessible cash available on the sale of shares in listed companies.

Targets for 2023

Our operational targets for the remainder of 2023 are:

· To continue our proactive exploration work across retained priority exploration interests seeking multiple large-scale metal discoveries.

· To generate value from our existing portfolio through the continuation of spin-out listings and outright disposals further enhancing the Company's financial strength.

Board Changes

In October 2022, Owain Morton was appointed to the Board as Non-executive Director.

Outlook

Power Metal has built its business through a creative acquisition and project generation approach with a view to building a portfolio charged with the potential to deliver the metals needed by the world in an era of metal criticality.

The portfolio is charged with strategic, and multiple potentially district scale exploration and development interests, some for priority internal exploration and some for value generation through spin-out listings or outright disposal.

As the world begins to recognise the importance of metal supply, and the need to support and invest in sources of supply, the Company is uniquely well positioned. We look forward to the developments in the business during 2023.

	Note		2022 £'000		2021 £'000
Revenue			37		37
Gross profit			37		37
Operating expenses	4		(3,127)		(847)
Impairment			-		(156)
Fair value gains through profit or loss			309		445
Loss from operating activities			(2,781)		(521)
Share of post-tax losses of equity accounted joint ventures			(167)		(102)
Loss before tax			(2,948)		(623)
Taxation			-		-
Loss for the year from continuing operations			(2,948)		(623)
Other comprehensive income Items that will or may be reclassified to profit or loss; Exchange translation			18		1
Items that will not be reclassified to profit or loss
Capital contribution			2,793		-
Total other comprehensive (expense)/income			2,811		1
Total comprehensive loss for the year			(137)		(622)
Loss for the period attributable to:
Owners of the parent			(2,256)		(592)
Non-controlling interests			(692)		(31)
			(2,948)		(623)
Total comprehensive loss attributable to:
Owners of the parent			82		(591)
Non-controlling interests			(219)		(31)
			(137)		(622)
Earnings per share from continuing operations attributable to the ordinary equity holder of the parent:
Basic and diluted loss per share (pence)	8		(0.15)		(0.05)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 

FOR THE YEAR ENDED 30 SEPTEMBER 2022

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2022

					30 September 2022		30 September 2021
			Note		£'000		£'000
Assets
Intangible assets			5		7,138		800
Investments in associates and joint ventures					402		166
Financial assets at fair value through profit or loss					1,620		3,527
Property, plant and equipment					33		2
Non-current assets					9,193		4,495
Financial assets at fair value through profit or loss					2,384		179
Trade and other receivables			6		346		175
Cash and cash equivalents					1,560		1,281
Current assets					4,290		1,635
Assets classified as held for sale					1,124		153
Total assets					14,607		6,283
Equity
Share capital			7		8,065		7,705
Share premium			7		23,312		18,437
Capital redemption reserve					5		5
Capital contribution reserve					2,322		-
Share based payment reserve					1,638		1,541
Exchange reserve					90		72
Accumulated losses					(23,740)		(21,488)
Total					11,692		6,272
Non-controlling interests					2,065		(306)
Total equity					13,757		5,966
Liabilities
Trade and other payables			9		850		317
Current liabilities					850		317
Total liabilities					850		317
Total equity and liabilities					14,607		6,283

The financial statements of Power Metal Resources PLC, company number 07800337, were approved by the board of Directors and authorised for issue on 3 March 2023.

CONSOLIDATED STATEMENT OF EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2021

	Share capital		Share premium		Shares to be issued		Capital Redemption Reserve		Capital contribution reserve		Share based payment Reserve		Exchange reserve		Retained deficit		Total		Non-Controlling Interests		Total Equity
	£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000
Balance at 1 October 2020	7,286		14,910		22		5		-		1,286		71		(20,911)		2,669		(275)		2,394
Loss for the period	-		-		-		-		-		-		-		(592)		(592)		(31)		(623)
Other comprehensive income	-		-		-		-		-		-		1		-		1		-		1
Total comprehensive income / (expense) for the period	-		-		-		-		-		-		1		(592)		(591)		(31)		(622)
Adjustment for previous year	(19)		19		-		-		-		-		-		-		-		-		-
Issue of ordinary shares	438		3,546		(22)		-		-		-		-		-		3,962		-		3,962
Costs of share issues	-		(38)		-		-		-		-		-		-		(38)		-		(38)
Share-based payments	-		-		-		-		-		270		-		-		270		-		270
Warrant exercises	-		-		-		-		-		(15)		-		15		-				-
Total transactions with owners	419		3,527		(22)		-		-		255		-		15		4,194		-		4,194
Balance at 30 September 2021	7,705		18,437		-		5		-		1,541		72		(21,488)		6,272		(306)		5,966

CONSOLIDATED STATEMENT OF EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2022

	Share capital		Share premium		Capital Redemption Reserve		Capital contribution reserve		Share based payment Reserve		Exchange reserve		Retained deficit		Total		Non-Controlling Interests		Total Equity
	£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000
Balance at 1 October 2021	7,705		18,437		5		-		1,541		72		(21,488)		6,272		(306)		5,966
Loss for the period	-		-		-		-		-		-		(2,258)		(2,258)		(690)		(2,948)
Other comprehensive income	-		-		-		-		-		18		-		18		-		18
Capital contribution	-		-		-		2,322		-		-		-		2,322		471		2,793
Total comprehensive income / (expense) for the period	-		-		-		2,322		-		18		(2,258)		82		(219)		(137)
Issue of ordinary shares	360		4,999		-		-		-		-		-		5,359		-		5,359
Costs of share issues	-		(124)		-		-		-		-		-		(124)		-		(124)
Share-based payments	-		-		-		-		101		-		-		101		-		101
Warrant exercises	-		-		-		-		(4)		-		4		-		-		-
Non-controlling interest adjustment on step disposal of subsidiaries	-		-		-		-		-		-		-		-		2,590		2,590
Total transactions with owners	360		4,875		-		-		97		-		4		5,336		2,590		7,926
Balance at 30 September 2022	8,065		23,312		5		2,322		1,638		90		(23,742)		11,690		2,065		13,755

CONSOLIDATED STATEMENT OF CASHFLOWS

AS AT 30 SEPTEMBER 2022

		2022 £'000		2021 £'000
Cash flows used in operating activities
Loss for the year from continuing activities		(2,948)		(623)
Adjustments for:
Fair value adjustments		(309)		(445)
Share of post-tax losses of equity accounted joint ventures		167		102
Impairment		-		156
Disposals of financial assets		245		-
Share-based payment expense		101		270
Foreign exchange differences		11		1
		(2,733)		(539)
Changes in working capital:
Increase in trade and other receivables		(250)		(181)
Increase in trade and other payables		477		156
Net cash used in operating activities		(2,506)		(564)
Cash flows from investing activities
Purchase of intangibles		(1,530)		(528)
Purchase of financial assets at fair value through profit or loss		(426)		(2,184)
Investment in joint ventures		(188)		(256)
Proceeds from investment disposals		-		261
Purchase of property, plant, and equipment		(32)		(2)
Net cash outflows from investing activities		(2,176)		(2,709)
Cash flows from financing activities
Proceeds from issue of share capital		3,211		3,679
Shares issued to non-controlling interests by subsidiaries		1,875		-
Issue costs		(125)		(38)
Net cash inflows from financing activities		4,961		3,641
Increase in cash and cash equivalents		279		368
Cash and cash equivalents at beginning of year		1,281		913
Cash and cash equivalents at 30 September		1,560		1,281

Significant non-cash transactions during the year

During the year ended 30 September 2022 a capital contribution and corresponding receivable balance of £2,793k was recognised in respect of the value of loans from subsidiary undertakings as part of a group reorganisation.

During the year, the Group acquired intangible assets, either directly or indirectly via subsidiary undertakings and investments in subsidiaries, totalling £2,148k via the issue of ordinary shares.

Included in purchases of intangible assets, is £2,590k, relating to the issue of shares by Golden Metal Resources Plc and First Development Resources Plc during the year, to non-controlling interests.

NOTES TO THE CONSOLODATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

1.  Reporting entity

Power Metal Resources PLC is a public company limited by shares which is incorporated and domiciled in England and Wales. The address of the Company's registered office is 201 Temple Chambers, 3-7 Temple Avenue, London EC4Y 0DT. The consolidated financial statements of the Company as at and for the year ended 30 September 2022 include the Company and its subsidiaries. The Group is primarily involved in the exploration and exploitation of mineral resources in Africa, Australia, Canada and the US.

2.  Going concern

The financial statements are prepared on a going concern basis. In assessing whether the going concern assumption is appropriate, the Directors have considered all relevant available information about the current and future position of the Group, including current level of resources, additional funding raised during the year and post-year-end, and the required level of spending on exploration and drilling activities. As part of their assessment, the Directors have also taken into account the ability to raise new funding whist maintaining an acceptable level of cash flows for the Group to meet all commitments.

The Directors have stress tested the Group's cash projections, which involves preserving cash flows and adopting a policy of minimal cash spending for a period of at least 12 months from the date of approval of these financial statements. The Directors believe the measures they have put in place will result in sufficient working capital and cash flows to continue in operational existence, assuming that all exploration and drilling activities are managed carefully and curtailed if necessary. For the Group to carry out the desired levels of exploration and drilling activities, the Directors believe that it needs to secure further funding either from a strategic partner or subsequent equity raisings in the next financial year, which the Group has succeeded in completing over recent years. The Group has the ability to partially dispose of equity investments if required. Taking these matters in consideration, the Directors continue to adopt the going concern basis of accounting in the preparation of the financial statements.

The financial statements do not include the adjustments that would be required should the going concern basis of preparation no longer be appropriate.

3.  Intangible assets - Prospecting and exploration rights

Rights acquired with subsidiaries are recognised at fair value at the date of acquisition. Other rights acquired and development expenditure are recognised at cost. 

Exploration and evaluation costs arising following the application for the legal right, are capitalised on a project-by-project basis, pending determination of the technical feasibility and commercial viability of the project. When a project is deemed not feasible, related costs are expensed as incurred. Costs incurred include any costs pertaining to technical and administrative overheads. Administration costs that are not directly attributable to a specific exploration area are expensed as incurred, and subsequently capitalised if it is reasonably certain that a resource will be defined.

Capitalised development expenditure will be measured at cost less accumulated amortisation and impairment losses.

4.   Operating expenses

Operating expenses include:					2022		2021
					£'000		£'000
Staff costs					960		686
Foreign exchange loss					11		14
Share based payment expense					70		249
Loss on disposal					180		770
Auditor's remuneration - audit services					29		27

Auditor's remuneration in respect of the Company amounted to £29,000 (2021: £26,500).

5.  Intangible assets 

Group								Prospecting and exploration rights £'000
Cost
As at 30 September 2020											1,126
Reclassification from Investment in Joint Venture											273
Additions											527
Balance at 30 September 2021											1,926
As at 30 September 2021											1,926
Reclassification from financial assets											136
Reclassification to assets held for sale											(993)
Additions											7,186
Effect of foreign exchange											9
Balance at 30 September 2022											8,264
Impairment
As at 30 September 2020											970
Charge											156
Balance at 30 September 2021											1,126
As at 30 September 2021											1,126
Balance at 30 September 2022											1,126
Net book value
At 30 September 2021											800
At 30 September 2022											7,138

During the year, the Ditau Camp/South Ghanzi Projects, and two properties held within the Athabasca project were transferred to held for sale and the Group acquired interests in several other projects, see below: 

				2022 £'000			2021 £'000
Intangible assets
Athabasca Uranium Project					175		3
Authier North Project					115		-
Tati Gold-Nickel Project					359		186
Garfield, Stonewall, Golconda Summit & Pilot Mountain Projects					4,865		83
Ditau Camp/South Ghanzi Projects					-		528
Wallal, Braeside West, Selta & Ripon Hill Projects					1,624		-
Total					7,138		800

The Directors regularly assess the carrying value of the Group's assets, including its prospecting and exploitation rights, and write off any exploration expenditure that they believe to be irrecoverable.

Athabasca Uranium Project

As at 30 September 2022, the Group held 11 properties covering 780km2 within and surrounding the prolific Athabasca Basin, including several new property acquisitions and additional staked ground, secured in the last quarter.

The conditional disposal of two properties held at the Athabasca project were announced during the year; Reitenbach, in August 2022 and E-12 in November 2022. Work is in process to complete the transaction through a listing on the London capital markets for the proposed holding vehicle, Teathers Financial Plc, to be renamed Uranium Energy Exploration PLC. The two properties have been moved to assets held for sale in the statement of financial position, totalling £28k.

A detailed update was announced in September 2022 covering a recently completed exploration programme covering Tait Hill, Thibault Lake and Clearwater and the launch of hyperspectral remote sensing review work at Cook Lake and E-12 properties. The update also included the expansion of the Tait Hill property and the staking of a new property Badger Lake, which followed on from the newly staked strategic Durrant Lake property.

Authier North Project

In July 2022, Power Metal decided to proceed into year 2 of the earn-in to a 100% interest in Authier North following completion and review of a Property Evaluation Report by Canada-based lithium geologist. The Authier North Property consists of 15 mineral claims covering an area of approximately 560 hectares and is prospective for lithium pegmatites and base metal mineralisation.

It is expected that the ground exploration programme will be undertaken in Spring 2023 and in the interim, the Company is considering the commercial options for the project.

Tati Gold-Nickel Project

In August 2022 the Company announced the commencement of RC drilling at the Tati Gold Project, designed to test the along strike and down dip extension of quartz reefs associated with the historical Cherished Hope gold mine. In early September 2022, the Company announced the completion of 490m of RC drilling over 9 holes and the successful intersection of quartz reef in all holes drilled, with multiple holes intersecting multiple sub-parallel quartz reef structures.

Molopo Farms Complex Project

In 2019 Power Metal acquired an equity stake in private company Kalahari Key Mineral Exploration Pty Limited (KKME), a Botswana registered exploration company with a 100% interest in the 1,723km2 Molopo Farms Complex Project (MFC) and in the previous financial year completed an earn-in to a 40% direct project interest.

The company secured a conditional agreement to acquire an additional 58.7% of shares in project partner KKME as announced on 18 May 2022. This acquisition, conditional on receipt of in-country regulatory approval, would see Power Metal holding 87.71% of KKME which will hold 100% of the Molopo Farms Complex Project ("Molopo Farms") after an appropriate restructuring, also part of the acquisition.  At Molopo Farms, Power Metal is targeting large-scale nickel-copper-PGE mineralisation.

Overall, the planned drill programme included 5 or 6 holes for a total of circa 2,600m of diamond drilling, and included two drillholes into target T1-6, located approximately 530m and 830m south of original hole K1-6, both designed to intersect the core of a geophysical conductor target.

Garfield, Stonewall, Golconda Summit and Pilot Mountain Projects

The Garfield and Stonewall exploration properties in Nevada were acquired in June 2021, through the Company's wholly owned operational subsidiary, Golden Metal Resources PLC ("Golden Metal"). A high-resolution soil geochemical survey was carried out at the Garfield property during the year with results pending at year end. The  soil survey assay results will help Golden Metal in targeting additional copper-gold-silver mineralisation.

During the year, a detailed desktop study was undertaken for the Stonewall project which identified multiple targets for follow up exploration programmes.

Golden Metal acquired 100% of the Pilot Mountain project during the year and has commissioned three-dimensional modelling of the high-resolution induced polarisation geophysics survey data collected, with results awaited. This is Golden Metal's flagship project.

Golden Metal is also the operator of the Golconda Summit Project which is held under an earn-in right from the mineral claim owner under an option agreement. Recently obtained historical dataset from a high-resolution geochemical soil survey covering the entirety of the Golconda Summit Project has highlighted three zones of strongly anomalous arsenic and gold mineralisation for further investigation. In addition. rock sample assay results from a geological mapping and sampling programme over Golconda Summit, undertaken by Golden Metal's in-country senior geological consultant, have confirmed strong arsenic (pathfinder for Carlin-type gold mineralisation) and gold anomalism.

Ditau Camp/South Ghanzi Projects

In September 2020, the Company acquired 50% of four prospecting licences in Botswana, from Kavango Resources PLC ("Kavango"), held in a joint operation arrangement in the prior year ended 30 September 2021.

During the year ended 30 September 2022, an agreement was put in place whereby Kavango would repurchase the 50% held by the Company on completion of a Prospectus, to be announced by Kavango in Q4 2022. As such, the investment was reclassified as held for sale as at 30 September 2022, the total of which was £965k. The disposal took place following the year end, see post-year-end section above for further details.

Wallal Project, Ripon Hills, Braeside Project and Selta Project

In October 2021, First Development Resources Pty Ltd ("FDR Pty"), an 100% subsidiary of First Development Resources PLC ("FDR PLC"), acquired the Wallal licences, located in the Paterson Province of Western Australia. The Wallal project covers an area of 572km2 and is the Group's primary focus in the region. It is of particular interest due to several geophysical anomalies which have been identified following the completion of an in-depth study which included the reprocessing of historic seismic data along with the analysis of historic magnetic and gravity geophysical surveys.

FDR PLC also acquired the Ripon Hills and Braeside West Projects cover a combined area of approximately 300km2. The tenements are located approximately 250 km southeast of Port Hedland on the western edge of the Paterson Province in Western Australia. The projects are located on the western and eastern limbs of the Oakover Syncline. The area is primarily prospective for manganese, similar to the nearby Woodie manganese mine, as well as base-metal and gold mineralisation associated with deep seated north to north-westerly trending fault structures. These fault structures have the potential to be conduits for various styles of hydrothermal mineralisation as evidenced by recent exploration conducted by ASX listed Rumble Resources Limited on land adjacent to the Braeside West tenement.

In February 2022, FDR PLC acquired URE Metals Pty Ltd ("URE") which holds t he Selta Project. The Selta project is located in the Northern Territory in an area considered highly prospective for uranium and Rare Earth Element ("REE") mineralisation along with base and precious metal mineralisation. Numerous companies are actively exploring within the region. The Selta project is comprised of three granted exploration licences and covers a total land area of almost 1,600km2 . The project borders ASX listed Prodigy Gold and Canadian listed Megawatt Lithium and Battery Metals Corporation; and is less than 70km northwest of Arafura's Resources high-grade, world-class Nolans REE deposit.

6.    Trade and other receivables

Group					2022 £'000		2021 £'000
Accounts receivable					123		104
Other receivables					149		19
Prepayments					74		52
Trade and other receivables					346		175

7.    Share capital

						Number of ordinary shares
						2022		2021
Ordinary shares in issue at 1 October						1,254,808,787		818,316,542
Issued for cash						137,142,857		422,890,840
Issued in settlement for acquisitions						222,703,277		13,601,405
In issue at 30 September - fully paid (par value 0.1p)						1,614,654,921		1,254,808,787

						Number of deferred shares
						2022		2021
Deferred shares in issue at 1 October						3,628,594,957		3,628,594,957
In issue at 30 September						3,628,594,957		3,628,594,957
						Ordinary share capital
						2022 £'000		2021 £'000
Balance at beginning of year						7,705		7,286
Prior Year Adjustment						-		(19)
Share issues						360		438
Balance at 30 September						8,065		7,705

					Share Premium
					2022 £'000		2021 £'000
Balance at beginning of year					18,437		14,910
Prior year adjustment					-		19
Share issues					4,999		3,546
Expenses relating to share issues					(124)		(38)
Balance at 30 September					23,312		18,437

The prior year adjustment in 2021 relates to a previous misallocation between share capital and share premium, relating to a share issue in the year ended 30 September 2017. £19,011 was incorrectly allocated to share capital and has been rectified in the year ended 30 September 2021.

All ordinary shares rank equally with regard to the Company's residual assets.

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

Both classes of deferred shares (Deferred and Deferred A), do not entitle the holders thereof to receive notice of or attend and vote at any general meeting of the Company or to receive dividends or other distributions or to participate in any return on capital on a winding up unless the assets of the Company are in excess of £1,000,000,000,000. The Company retains the right to purchase the deferred shares from any shareholder for a consideration of one penny in aggregate for all that shareholder's deferred shares. As such, the deferred shares effectively have no value.  Share certificates will not be issued in respect of the deferred shares.

Issue of ordinary shares

In October 2021, the Company received notices to exercise warrants over 15,578,947 new ordinary shares of 0.1 pence each in the Company raising an additional £139,842 for the Company. The warrant shares were issued pursuant to the exercise of 10,000,000 warrants at an exercise price of 1.0 pence per ordinary share, 1,578,947 warrants at an exercise price of 0.75 pence per ordinary share and 4,000,000 warrants at an exercise price of 0.70 pence per ordinary share.

In November 2021, Golden Metal acquired a 100% interest in the Pilot Mountain project, the consideration for which was paid by Power Metal, including the issue of 48,118,920 new ordinary shares of 0.1p each at an issue price of 2.5p, equating to £1.2m.

In November 2021 the Company acquired 100% of FDR Australia and the Wallal Main licence currently held within FDR Australia through the issue of 13,333,333 Power Metal new ordinary shares of 0.1p each at an issue price of 2.75p and 13,333,333 warrants to acquire new Ordinary Shares at an exercise price of 4.5p. Additional Consideration for the 100% acquisition of all other FDR Australia interests (granted licences and a licence application currently held by third parties to be transferred into FDR Australia under the Agreement) of 10,000,000 Power Metal shares at an issue price of 3.2p and 10,000,000 warrants to acquire new Ordinary Shares at an exercise price of 5.0p.

In November 2021, the Company raised £1,050,000 through the issue of 60,000,000 new ordinary shares of 0.1p each ("Placing Shares") at an issue price of 1.75p, the closing mid-market price on 12 November 2021. Each Placing Share has an attaching warrant to subscribe for a further new ordinary share of 0.1p each at an exercise price of 3.5p each with a two-year term from the admission of the Placing  Shares creating 60,000,000 placing warrants.

In November 2021, the Company received notice to exercise warrants over 1,500,000 new ordinary shares of 0.1 pence each in the Company, at an exercise price of 0.7 pence per ordinary share, raising an additional £10,500.

In December 2021, the Company received notice to exercise warrants over 38,500,000 new ordinary shares of 0.1 pence each raising an additional £269,500 for the Company. The Warrant Shares were issued pursuant to the exercise of 38,500,000 warrants at an exercise price of 0.7 pence per ordinary share of 0.1 pence each in the Company.

In January 2022 the Company agreed terms to secure the early clearance of a Tail Benefit through the payment of £50,000 cash and issue to Thor Mining of 4,000,000 new ordinary shares of 0.1p each in the Company at an issue price of 2.5p per share.

In January 2022 the Company announced that the two Prospecting Licences comprising the Tati Project were successfully transferred into Tati Greenstone Resources Pty Ltd, a wholly owned private Botswana-based subsidiary of Power Metal. The Company issued 833,333 new ordinary Shares of 0.1p each at an issue price of 3.0 pence per New Ordinary Share. The Company also elected to proceed with the year 3 exploration spend programme (for the year ending 30 September 2022) and paid a further consideration of £50,000, to the Vendors through the issue of 833,333 New Ordinary Shares at an issue price of 3.0p each for each licence, resulting in 1,666,666 New Ordinary Shares to be issued.

In February 2022, the Company received a notice to exercise options over 13,613,929 new ordinary shares of 0.1 pence each at an exercise price of 1.0 pence per new ordinary share raising an additional £136,139 for the Company.

In February 2022, the Company received a notice to exercise warrants over 5,000,000 new ordinary shares of 0.1 pence each at an exercise price of 0.75p per Warrant Share and raising an additional £37,500 for the Company.

In April 2022, the Company received a notice to exercise warrants over 2,315,789 new ordinary shares of 0.1 pence each at an exercise price of 0.75p per Warrant Share, raising an additional £17,368 for the Company.

In May 2022, the Company received a notice to exercise warrants over 6,710,526 new ordinary shares of 0.1 pence each at an exercise price of 0.75p per Warrant Share, raising an additional £50,329 for the Company.

In May 2022 the Company signed an Agreement for the 100% acquisition of Pardoo Resources Pty Limited by First Development Resources PLC. The Company issued 398,036 Ordinary Shares at an issue price of 2.75p and 398,036 Power Metal warrants at an exercise price of 4.5p.

In June 2022, the Company received a notice to exercise warrants over 657,895 new ordinary shares of 0.1 pence each at an exercise price of 0.75p per Warrant Share, raising an additional £4,934 for the Company.

In July 2022 the Company received a notice to exercise warrants over 54,772,304 new ordinary shares, raising an additional £414,865 for the Company. The warrant shares were issued pursuant to the exercise of 51,022,319 warrants at an exercise price of 0.75 pence per ordinary share and 3,749,985 warrants at an exercise price of 0.90 pence per ordinary share.

In July 2022 the Company announced an acquisition of additional uranium properties surrounding the Athabasca Basin in northern Saskatchewan, Canada. The cost of the Acquisition was £88,872 payable as £16,158 cash and £72,714 through the issue of 5,703,599 new ordinary shares of 0.1p in the Company at an issue price of 1.275p.

In September 2022 the Company raised £800,000 before expenses through the issue of 57,142,857 new ordinary shares of 0.1p each at an issue price of 1.4p per share, the closing market price on 2 September 2022. Each share has an attaching warrant to subscribe for one new ordinary share of 0.1p each at an exercise price of 2.0p with a 12-month term from 19 September 2022 creating 57,142,857 warrants.

In September 2022, the Company raised an additional £280,000 before expenses through the issue of 20,000,000 new ordinary shares of 0.1p each at an issue price of 1.4p per share, the closing market bid price on 2 September 2022. As above, each share has an attaching warrant to subscribe for one new ordinary share of 0.1p each at an exercise price of 2.0p with a 12-month term from 19 September 2022.

8.  Earnings per share

Basic and diluted loss per share

The calculation of basic and diluted loss per share is based on the loss attributable to ordinary shareholders of £2,257,872 (2021: £591,938), and a weighted average number of ordinary shares in issue of 1,457,507,624 (2021: 1,079,317,932).

The basic and diluted earnings per share are the same given the loss for the year, making the outstanding share options and warrants anti-dilutive.

9.    Trade and other payables

Group

										2022 £'000				2021 £'000
Trade payables									686				250
Accrued expenses									164				67
Trade and other payables										850				317

Company

						2022 £'000		2021 £'000
Trade payables						329		146
Accrued expenses						164		74
Payable to group undertakings						24		27
Trade and other payables						517		247

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)	[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

 

 

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