Update - Kavango Resources PLC

RNS Number : 9634G

Power Metal Resources PLC

18 November 2022

 

18 November 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Investee Update - Kavango Resources PLC

Power Metal Resources PLC (LON:POW),  the London listed exploration company seeking large-scale metal discoveries across its global project portfolio notes the announcement released today by Kavango Resources PLC ("Kavango"), confirming the publication of its Prospectus.  The announcement may be viewed through the link below:

https://www.londonstockexchange.com/news-article/KAV/publication-of-prospectus/15722375

The publication of the Kavango Prospectus enables the issue to Power Metal of various consideration items following the disposal of Power Metal's holding in the Kanye Resources joint venture in Botswana, to Kavango.  This was announced on 8 July 2022 by Power Metal and that announcement may be viewed through the link below:

https://www.londonstockexchange.com/news-article/POW/conditional-disposal-of-kanye-resources-interests/15532470

The detailed consideration items to be issued to Power Metal and terms related thereto are outlined in the 8 July 2022 announcement above (the "Consideration").

This Consideration includes the issue to Power Metal of 60,000,000 Kavango new ordinary shares.

Following the expected admission of the Kavango shares on 25 November 2022 ("Admission"), and taken together with Power Metal's existing holding, the Company will hold 69,500,000 shares equating to 9.85% of Kavango's issued share capital (market value of £1.25million at the Kavango mid-price at market close 17 November 2022).

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

"My congratulations to the Kavango team for the successful publication of their Prospectus.  Kavango now has 100% control of an extensive ground footprint in Botswana and will be financed to advance at some pace with potentially high-impact exploration.  We wish them well and will be watching developments closely.

Power Metal now moves to become a strategic investor in Kavango with an 9.85% holding on Admission next week, carrying a value of some £1.25m at yesterday's closing market mid-price.

The significant Kavango holding will sit alongside our 27.91% holding in First Class Metals PLC valued at £2.78m at yesterday's closing market mid-price and the two investments together a market value of £4.03m combined.

This in our view is just the start and our objective is to continue to build the Power Metal balance sheet through corporate transactions underpinning the financial value of the Company whilst our exploration activities continue at some pace across our extensive global portfolio."

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.

Exploration Work Overview

Power Metal has multiple internal exploration programmes completed or underway, with results awaited.  The status for each of the Company's priority exploration projects is outlined in the table below.

Project	Location	Current POW %	Work Completed or Underway	Results Awaited
Athabasca Uranium	Canada	100%	Ground exploration programme complete at 3 properties.  Preliminary planning for work in Spring/Summer 2023 is ongoing.	Assay results from samples collected during fieldwork.
Molopo Farms	Botswana	87.71%	First 2 holes at T1-6 conductor target drilling complete. T1-14 first hole underway. Further MLEM surveys planned over additional AEM targets identified.	Drill programme updates and findings from further MLEM survey work.
Tati Project	Botswana	100%	RC drilling and sampling of mine dumps complete.	Mine dumps processing and project commercial and exploration next steps.

Exploration work programmes may also be underway within Power Metal investee companies and 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.  These interests are summarised in the table below:

Company	Status/Operations	Link
First Class Metals PLC	Investment - POW 27.91% Exploration in the Schreiber-Hemlo region of Ontario, Canada	www.firstclassmetalsplc.com
Kavango Resources PLC	Investment - POW 9.85% (on expected Admission 25.11.22) Exploration in Botswana	www.kavangoresources.com
First Development Resources PLC	Planned IPO - POW 62.12% Exploration in Western Australia and the Northern Territory of Australia	www.firstdevelopmentresources.com
Golden Metal Resources PLC	Planned IPO - POW 83.13% Exploration and development in Nevada, USA	www.goldenmetalresources.com
New Ballarat Gold PLC	Planned IPO - POW 49.9% Exploration in the Victoria Goldfields of Australia	A new website is currently in development which will be found at www.newballaratgoldcorp.com . In the interim further information in respect of NBGC can be found at: https://www.powermetalresources.com/project/victoria-goldfields/ .
Uranium Energy Exploration PLC	Planned IPO - POW on listing estimated 50-55% Uranium exploration in the Athabasca region of Canada	www.uraniumenergyexploration.com

 

END

 

 

UPDUWUNRUSUAAAA