Strategic Partner Update - Botswana

RNS Number : 2189E

Power Metal Resources PLC

05 July 2021

 

5 July 2021

Power Metal Resources plc

("Power Metal" or the "Company")

Strategic Partner Update - Botswana

Power Metal Resources plc (LON:POW), the AIM listed metals exploration and development company, is pleased to note the announcement by Kavango Resources (LON:KAV) ("Kavanago") released today announcing a £1.94m placing and an expansion of their drill programme at their wholly owned Kalahari Suture Zone project which may be viewed through the following link:

https://www.londonstockexchange.com/news-article/KAV/expansion-of-drilling-ksz-ops-update-and-placing/15044807

Power Metal and Kavango each have a 50% interest in Kanye Resources plc, a UK registered strategic joint venture company which wholly owns Kanye Resources (Pty) Ltd ("Kanye Botswana") a Botswana private company. 

Kanye Botswana is the proposed holding company for the South Ghanzi - Kalahari Copper Belt and Ditau Camp Projects.  An application has been made by Kavango to transfer the prospecting licences for both projects into Kanye Botswana.

There are plans to IPO Kanye Resources plc on a recognised stock exchange.

Power Metal currently holds 9,500,000 Kavango ordinary shares and 4,750,000 warrants to acquire Kavango shares at an exercise price of 2.5p per Kavango share at any time prior to 28 April 2023.

Power Metal's holding in Kavango at the market mid-price as at 1pm today (6.1p) is valued at £750,500 (value of shares and margin above exercise price on the 2.5p warrants).

Recognising our original cost of entry £38,000 (April 2020) and the £47,500 cost of exercising the previously held 1.0p warrants (exercised April 2021), Power Metal is showing a paper gain of  £665,000 on its Kavango investment. 

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

"As a strategic partner we have been enthused by the operational progress made and announced to market by Kavango.  The £1.94m financing announced by Kavango today, on robust terms, is a further positive step forward and provides the working capital needed to support their ambitious exploration plans.

Power Metal is working with Kavango on the Kanye Resources strategic joint venture where drilling is planned on both the South Ghanzi - Kalahari Copper Belt (Copper, Silver focused) project and the Ditau Camp (Rare Earths focused) project. The announcement by Kavango today demonstrates their desire to accelerate drilling across all projects including the joint venture projects.

Power Metal continues to hold its full position in Kavango, and we have significant paper gain  compared to the original £38,000 invested in April 2020.  This demonstrates the value of holding both project and equity interests and we are optimistic of continuing growth in the value of our investment."

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 (LON:POW) is an AIM listed metals exploration and development company seeking large scale metal discoveries

The Company has a global portfolio of project interests including precious, base and strategic metal exploration in North America, Africa and Australia. Project interests range from early stage greenfield exploration to later stage exploration prospects 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

 

 

UPDGZGGNDKDGMZM