UK Government Critical Minerals Strategy Paper

RNS Number : 4576T

Power Metal Resources PLC

22 July 2022

 

22 July 2022

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

United Kingdom Government Releases the 'UK's Critical Minerals Strategy' Policy Paper

Power Metal Resources plc (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio notes the publication today by the United Kingdom's Department for Business, Energy & Industrial Strategy (the "Government") released a policy paper entitled "Resilience for the future: The UK's critical minerals strategy" ("Policy Paper") which may be viewed below through the following link:

https://www.gov.uk/government/publications/uk-critical-mineral-strategy/resilience-for-the-future-the-uks-critical-minerals-strategy

The Policy Paper sets out the Government's strategy and outlines a number of objectives (pages 4-5) as well as a new approach towards critical minerals supply chains of which the following are particularly notable from the Company's perspective:

-  Champion London as the world's capital of responsible finance for critical minerals (further information page 30 of the Policy Paper).

-  Support UK companies to participate overseas in diversified responsible and transparent supply chains (page 22).

-  Boost global environmental, social and governance performance ("ESG"), reducing vulnerability to disruption and levelling the playing field for responsible businesses (page 26).

-  A cohort of minerals with high criticality for the UK is outlined which includes cobalt, lithium, rare-earth elements and tungsten as well as the Critical Minerals Expert Committee's first watchlist which includes Nickel. Power Metal is currently exploring for all of these critical metals within safe, mining-friendly jurisdictions (page 8).

Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:

"We are encouraged by the Government's public recognition of the need for a more thought- provoking strategy towards the development of secure critical minerals supply chains.

As a UK listed resource exploration and development company, Power Metal is working across multiple exploration and development projects in North America, Africa and Australia seeking large scale metal discoveries, with a particular focus on district scale opportunities.

We note the inclusion of tungsten within the cohort of minerals with high criticality for the UK (page 8). This aligns with the United States Geological Survey's inclusion of tungsten on their critical minerals list published in February 2022¹ and further demonstrates the importance of our 83.13% owned subsidiary Golden Metal Resources plc, with its flagship Pilot Mountain Project - focused on the tungsten commodity in mining friendly Nevada, USA.

Golden Metal is in the final preparatory stage of a planned listing on the London capital markets, and we agree that London has the potential to be a major global centre for international resource exploration and development finance. For this reason, Power Metal is planning to list its various resource project packages in London.

The resilience of critical mineral supply chains is becoming an important consideration for many governments around the world. However, as acknowledged in the Policy Paper, there is a need to act responsibly and strongly embedded ESG policies need to be at the forefront of this fundamental shift. Power Metal recognises this and will soon be publishing its ESG Policy which will be applied to all our operations.  The ESG Policy will codify what we are commonly doing in practice today as a responsible organisation and will make further enhancements to our internal ESG mindset, with real qualitative and quantitative ESG targets."

Note

¹ https://www.usgs.gov/news/national-news-release/us-geological-survey-releases-2022-list-critical-minerals

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.

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

Exploration work programmes may also be underway within planned IPO vehicles where Power Metal has a material interest the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required:

www.firstclassmetalsplc.com

www.goldenmetalresources.com

www.firstdevelopmentresources.com

Power Metal also holds a material investment in Kavango Resources plc with exploration updates available through their regulatory announcements and on their website:

www.kavangoresources.com

Project	Location	Current POW %	Work Completed or Underway	Results Awaited
Alamo Gold Project	USA	Earn-in to 75%	Technical reports received following excavation of multiple test pits and mapping & sampling completed.	Analysis of technical reports and potential follow-on work programme under review.
Athabasca Uranium	Canada	100%	Hyperspectral data analysis conducted across all 7 properties. Updating to 7 data rooms for third party review.	Finalise review of data from 3 properties.  Prepare for summer exploration programme across 4 properties.
Authier North Lithium	Canada	Earn-in to 100%	Property Evaluation Report completed.	Update covering exploration plans for target areas identified during the Evaluation.
Molopo Farms	Botswana	53%#	Comprehensive data review complete and establishment of data room for third party review.	Finalise next exploration steps and action plan.
Tati Project	Botswana	100%	Site visit with mapping of gold workings and mine dumps.	Exploration planning underway including further mapping, sampling and launch of an RC drill programme.
Victoria Goldfields	Australia	49.9%	Diamond drill programme completed. Review of Ajax & Berringa mine remaining resource potential.	Final drill programme results analysis and resource potential analysis from former high-grade producing mines in granted licences.

^# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

 

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