Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a business update covering the Company’s global uranium interests.
Togo Agreement
· Power Metal has signed an agreement with David Knopf, a consulting geologist governing the evaluation, acquisition and exploration of uranium prospects in Togo, West Africa (the “Agreement”).
· Power Metal is to establish a wholly-owned operating subsidiary in Togo, to act as a holding company for Togo uranium interests (“Togo Subsidiary”).
· Upon successful transfer of newly acquired interests into the Togo Subsidiary, Power Metal will pay agreed finder’s fees to Mr Knopf equating to €27,000 in total for the first acquisition and €15,000 for any subsequent acquisitions (finders fees will be payable in part cash and part Power Metal shares based on the volume weighted average price of Power Metal shares in the ten working days prior to each acquisition).
· In addition, should Power Metal or the Togo Subsidiary announce a Decision to Mine (“DTM”) in respect of any project acquired under the Agreement, further fees would be payable of €100,000 in cash and €200,000 in Power Metal shares (Power Metal Shares based on the volume weighted average price of Power Metal shares in the ten working days prior to each DTM).
· Power Metal will have access to the services of Mr Knopf as well as his Togo based business partner who is an established senior geologist with strong capabilitities in-country who will assist with the organisation and management of local geological operations.
· Existing project targets have been established and the Company is working with the team in Togo to plan next stages of exploration as well as to secure new opportunities as soon as possible.
Athabasca Basin, Saskatchewan, Canada
Power Metal, through its wholly-owned local subsidiary, holds a large strategic footprint in the Athabasca Basin area with 7 properties covering a combined area of 450.01km2. The Company’s in-house uranium specialist has completed a data compilation exercise across all 7 properties, the results of which have previously been announced to the market. Shareholders wishing to see an overview of the findings from each property are invited to visit the Company’s website where individual uranium project factsheets have been uploaded:
https://www.powermetalresources.com/fact-sheets/
The Power Metal team are currently finalising next stage exploration plans at our 7 Athabasca properties and a further update will be provided covering this in due course.
The Company commissioned a National Instrument 43-101 technical report (“Report”) in respect of the Reitenbach Property as announced in March 2022:
Power Metal expects to release the findings from this report in the near term.
Further information from the data compilation completed over the Reitenbach Property was announced by the Company in February 2022 and may be viewed through the following link:
Selta Project, Northern Territory, Australia
The Selta Project (“Selta”) was acquired in November 2021 by Power Metal UK subsidiary First Development Resources Limited through the acquisition of Australian private holding company URE Metals Pty Limited.
In February 2022 an in-depth review (“Review”) of the rare-earth element and uranium potential at the Selta Project was undertaken:
https://www.londonstockexchange.com/news-article/POW/selta-project-update/15328364
The Review confirmed multiple uranium targets at Selta, further details of which were announced in March 2022 and may be viewed in the link below:
Further work is underway to evaluate the findings of the review and determine the next stages for uranium focused exploration.
Paul Johnson, Chief Executive Officer of Power Metal commented:
“This Agreement announced today securing Power Metal a pathway into Togolese uranium opportunities marks our first entry into African uranium exploration. We are already working with the Togo team in respect of sourcing new uranium opportunities and I expect to report back soon on developments there.
The Togo opportunity complements the Company’s existing uranium interests including the large 7 property portfolio in the Athabasca Basin area of Saskatchewan, Canada, and the Selta Project, forming part of planned listing vehicle First Development Resources Limited.
At Power Metal we see an opportunity to further build our uranium profile. This will be accomplished by undergoing exploration on our existing exploration portfolio, the acquisition of additional interests, as well as through investment holdings in new uranium focused entities that we can help to create.”
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.