#POW Power Metal Plc – Financing Raises £1,050,000

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces the Company has raised £1.05 million through a placing  of new ordinary shares of 0.1 pence each in the Company as detailed below (the “Placing”).

HIGHLIGHTS:

– Power Metal raised £1.05 million at the closing market mid-price of 1.75p on 12/11/21.

– Funds raised to enable acceleration of business operations including strategic exploration activities and corporate opportunities.  

– Power Metal working capital comprising solely cash and listed investments increases to circa £3million.

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

“ The new shares issued in the Placing undertaken by the Company represents dilution of just 4.5% of current issued share capital and adds a material further cash resource into the Company at this opportunistic time. 

Power Metal has maintained a strong working capital position throughout 2021, notwithstanding significant investment in exploration and corporate development.  The Company is now at a key point where extensive exploration activities are underway and corporate activities are intensifying.

The Placing will allow the Company to expand its exploration budgets, accelerate corporate work and complete on a number of new initiatives.

The Power Metal board have been unable to participate in this Placing as we are actively involved in a number of initiatives that due to the possession of potentially price sensitive information would preclude us from buying the Company’s shares at this time.”

FINANCING DETAILS

–   The Company has  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 will have an attaching warrant to subscribe for a further new ordinary share of 0.1p each (“Ordinary Share”) at an exercise price of 3.5p each with a two year term from the admission of the Placing  Shares (“Placing Warrant”) creating 60,000,000 Placing Warrants.

– Should the Power Metal share price exceed a volume weighted average share price of 10p for ten trading days Power Metal may issue a written notice to Placing Warrant holders providing ten trading days to exercise the Placing Warrants and ten further trading days to make payment of exercise monies or the Placing Warrants may be cancelled.

–    The Placing was undertaken by the Company’s Joint broker First Equity Limited.Power Metal will issue First Equity Limited 6,000,000 warrants to subscribe for Ordinary Shares on the same terms as the Placing Warrants.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 60,000,000 Placing  Shares to be admitted to trading on AIM which is expected to occur on or around 13 December 2021 (“Admission”). The Placing Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.

Following Admission, the Company’s issued share capital will comprise 1,403,339,987 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

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: