Australia Gold JV - Grants of First Licenses

RNS Number : 6883N

Power Metal Resources PLC

02 February 2021

 

2 February 2021

Power Metal Resources plc

("Power Metal" or the "Company")

Australia Gold Joint Venture - Grants of First Licenses

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update in respect of Red Rock Australasia Pty Ltd ("RRAL") a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Victoria Goldfields.

Power Metal has a 49.9% interest in RRAL, with Red Rock Resources plc (LON:RRR)  holding a 50.1% interest.

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

"The grant of three licenses marks a highly important moment for the Australia gold joint venture, enabling RRAL to move forward with active exploration in a highly prospective group of licenses in the Victoria Goldfields, centred on the historic mining centre of Ballarat.

We will be publishing early exploration plans shortly, something all parties have been preparing for over a number of months and utilising the RRAL Ballarat headquarters as the centre of the operational work.

In addition we continue to work on corporate activities surrounding the RRAL business, which given the level of interest shown in the Victoria Goldfields and now with the grant of the three licenses, becomes all the more relevant.

Importantly, Power Metal is particularly well funded and is able to immediately invest in gold exploration programmes to build what we believe will be considerable value in this unique and significant opportunity."

Highlights:

· RRAL has received formal license grants for three of its license applications as follows:

-  The 133 sq km "Blue Whale" license south and east of Ballarat (EL007271)

-  The 74 sq km "Blue Chip" license west and south of Ballarat (EL007281)

-  The 8 sq km "Blue Ribbon" license north of Ballarat (EL007285)

· All three licenses are granted for a period of five years

·RRAL is to launch an expeditious exploration programme further details of which will be announced shortly.

FURTHER INFORMATION

Joint Venture Company - RRAL

RRAL is a joint venture company 50.1% owned by Red Rock and 49.9% owned by Power Metal Resources plc ("POW"). Paul Johnson, CEO of Power Metal and Andrew Bell, Chairman of Power Metal are directors of RRAL.

Granted Licenses

RRAL has received notice that its applications for the three licenses where applications had been expedited have been successful, and that it has now been granted the three licenses nearest to the regional centre of Ballarat, namely EL007271 ("Blue Whale"), EL007281 ("Blue Chip"), and EL007285 ("Blue Ribbon").

These licenses cover 215 sq km forming an outer ring around Ballarat, along the Ballarat trend and covering high priority areas where RRAL has early drill targets that it is developing.

RRAL Applications

RRAL is also one of four applicants for the 148 sq km tenement EL007540 compulsorily surrendered by the owners of the Ballarat mine which forms a close-fitting inner ring around the Ballarat Mine.  The EL007540 ground is surrounded by RRAL's now granted tenements and if granted to RRAL would link them. 

In total RRAL has now lodged applications for an additional 13 new gold exploration license areas covering approximately 2,121 km² in the Victoria Goldfields of Australia as follows:

License Application Number	Project Name	Area (km2)
EL007282	Blue Sky	489
EL007294	Red Queen	130
EL007301	Mt Bute	85
EL007327	Blue Stocking	60
EL007328	Blue Yonder	168
EL007329	Evergreen	486
EL007330	Blue Angel	202
EL007385	Sardinia	4
EL007460	Kilmore West	349
State land within EL007271 EL007505 EL007506 EL007507		(9) (9) (8)
EL007540* (3 competing applications)	Outer Ballarat	148
Total		c 2,121

* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.

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:

P ower Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

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 global metals exploration.

 

END

 

 

MSCDLLBBFLLZBBK