Home » Posts tagged 'Barrick Gold Corporation'
Tag Archives: Barrick Gold Corporation
Power Metal Resources #POW – Exercise of Ontario Options – Magical and Enable Properties
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce that following due diligence work the Company has exercised its option to acquire both the Magical Property (“Magical”) and Enable Property (“Enable” together the “Properties”) located on the prospective Schreiber-Hemlo Greenstone Belt in north-western Ontario, Canada.
These are the final two of four gold exploration properties upon which the Company signed an exclusive option to acquire a 100% interest (as announced 26 January 2021) and follows the McKellar option exercise and the Coco East option exercise which were announced on 18th and 24th February 2021 respectively.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“The exercise of our options over the Magical and Enable properties concludes Power Metals’ current acquisition strategy over the Schreiber-Hemlo Greenstone Belt in Ontario. Power’s portfolio of exploration properties provides us the opportunity to build value, within a 120km strike length, of a prolific exploration belt.
We will now commence a phase of desk-based remote sensing targeting and exploration planning with a view to being in a position to initiate ground reconnaissance and target follow-up work after the snow thaw. We look forward to providing further updates as plans progress.”
MAGICAL PROPERTY OVERVIEW
– Magical is located 9km northwest of Barrick Gold Corporation’s Hemlo Mine which has produced more than 21Moz gold and has been operating continuously for more than 30 years1.
– The property is located upon the North Limb of the Schreiber-Hemlo Greenstone Belt, the property is located at the prospective contact between the intrusive Gowan Lake Pluton and metavolcanic/metasedimentary rock packages, with a similar geological setting to the Hemlo deposit. Magical offers potential for orogenic style gold mineralisation.
– The regional geophysics data shows a north trending regional scale magnetic structure intersects the intrusion within the centre of the property, defining a preliminary target for investigation.
– Magical is largely unexplored apart from the easternmost Claim cell where, in 1995, Hemlo Gold Mines Inc drilled an induced polarisation (“IP”) geophysics anomaly. Diamond drill hole V95-2 reportedly intersected a 7m zone of silicification containing sericite and sulphides and 12.6m of feldspar porphyry with disseminated pyrite.
– Magical directly abuts and covers the westward strike extension of the Canadian listed junior Hemlo Explorers Inc (TSX-V: HMLO) North Limb Property2 .
MAGICAL CLAIM STATUS
– The Magical property consists of a total of 14 Single Cell Mining Claims (“Claims”) covering an area of circa 3.0km2.
– Claims are valid through to 27 July 2022 upon which they can be renewed on an annual basis. For renewal the Magical Claims will require an aggregate work spend of CAD$5,600 (circa £3,145) prior to the individual Claim renewal dates.
ENABLE PROPERTY OVERVIEW
– The Enable property is located on the western part of the Schreiber-Hemlo Greenstone Belt, at the contact of metavolcanic and volcano-sedimentary rock packages with the Terrace Bay Batholith.
– On a regional scale the Terrace Bay Batholith contact is spatially associated with at least 28 documented gold showings including the Northshore Property which has historical resources of 1.2Moz Au3. Northshore has recently been subject to open pit mining studies and is currently held by Canadian Securities Exchange listed Ready Set Gold Corp. (CSE:RDY).
– Overburden cover has been attributed to the reason the Enable portion of the batholith contact remains unexplored. This presents an opportunity to discover new gold mineralisation utilising modern exploration technologies.
– Access to the property is good, being 4km north of the town and railway stop of Terrace Bay and with the Trans-Canada Highway running within 200m of the eastern boundary. The centre of the property is crossed by a public highway with logging roads and a lake providing access to the western part of the property.
ENABLE CLAIM STATUS
– The Enable property consists of a total of 41 Claims covering an area of circa 8.7km2.
– Claims are valid through to 25 July 2022 upon which they can be renewed on an annual basis. For renewal the Enable Claims will require an aggregate work spend of CAD$16,400 (circa £9,210) prior to the individual Claim renewal dates.
ACQUISITION TERMS
The vendors of the Option (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was the Vendor of the Hemlo North Gold Project acquired by Power Metal as announced on 21 January 2021.
In exercising the Option to acquire a 100% interest in the Magical and Enable properties POW will make the following cash and equity consideration:
|
Property Name |
Cash (CAD$) |
POW Shares (CAD$) |
Note: POW Acquisition Shares to be issued |
Total Consideration (CAD$) |
|
Magical |
20,000 |
20,000 |
384,000 |
40,000 |
|
Enable |
30,000 |
30,000 |
576,000 |
60,000 |
The POW shares payable as consideration are new ordinary shares of 0.1p each in the Company at an issue price of 3.0 pence per share (“Acquisition Shares”). The cash costs of the acquisition are funded from Power Metal’s existing Canadian Dollar cash account.
The Vendors retain a 2% net smelter royalty (“NSR”) on each property, Power Metal may purchase 1% of each NSR, at any time, by making a cash payment to the Vendors of CAD$500,000.
The Vendors will continue to work with Power Metal in the local management of any new properties acquired through this transaction; the development and implementation of exploration plans and the identification of further new opportunities.
EXPLORATION PLAN
– Ongoing exploration spend will be at the discretion of Power Metal as the 100% owner of the properties.
– Preliminary exploration work is expected to include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.
– The Province of Ontario has an established mineral exploration industry with a large number of local exploration contractors that could be engaged to fulfill the planned work on a cost-effective basis.
Admission and Total Voting Rights
Application will be made for the 960,000 Acquisition Shares to be admitted to trading on AIM, which is expected to occur on or around 4 March 2021 (“Admission”). The Acquisition 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 1,136,877,930 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.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
Reference Sources
1: Barrick Gold Corporation, Hemlo Project webpage: https://www.barrick.com/English/operations/hemlo/default.aspx
2: Hemlo Explorers Inc (TSX-V: HMLO) North Limb Property webpage: https://hemloexplorers.ca/projects/hemlo-north-limb/overview/
3: Mineral resource estimate: Technical Report on the Mineral Resources of the Northshore Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada with an effective date of 28 April 2014, by Giroux Consultants Ltd. and Minorex Consulting Limited.
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) |
+44 (0) 7766 465 617 |
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
|
First Equity Limited (Joint Broker) |
|
|
David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power 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 metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of 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.
Power Metal Resources #POW – Exercise of Ontario Option – Coco East Property
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce that following due diligence work the Company has exercised its option to acquire the Coco East Property (“Coco East” or the “Property”) located on the prospective Schreiber-Hemlo Greenstone Belt in north-western Ontario, Canada.
Coco East is the second of four gold exploration properties upon which the Company has an exclusive option to acquire a 100% interest, (the “Option”) (as announced 26 January 2021) and follows the McKellar option exercise which was announced 18 February 2021.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“Exercising the Option over the Coco East Property further strengthens Power Metals’ landholding in Ontario, following directly on from the acquisition of the McKellar Property which was announced last week.
Coco East is sited upon the eastern end of the Big Duck Lake Porphyry intrusive which is associated with over twenty known gold and/or base metal occurrences including significant gold intersections which were drilled in a neighbouring property during 2017. The property is also directly east of Superior Lake Resources’ Pick Lake / Winston Lake Zinc Project which is currently advancing towards a high grade zinc mine restart.
We are continuing our due diligence review of the remaining two option properties and will provide a further update in due course.”
COCO EAST PROPERTY OVERVIEW
- Located upon the Schreiber-Hemlo Greenstone Belt, Coco East sits at the eastern end of a 4.5km long by 1km wide quartz feldspar porphyry intrusion (the ‘Big Duck Lake Porphyry’) that can be associated with up to twenty-two known gold and/or base metal occurrences.
- Geology of the property consists of intrusive porphyry, ultramafic, metavolcanic and metasedimentary rock packages prospective for both gold and volcanogenic massive sulphide (“VMS”) style copper-lead-zinc-silver mineralisation.
- Regional magnetics survey data shows distinct areas of interest within the property including magnetic highs associated with the eastern end of the Big Duck Porphyry and magnetic ridges which may be indicative of structural faulting and deformation associated with the intrusive event.
- Located approximately 3.5km east of the Coco-Estelle Deposit where diamond drilling during 2017 intersected significant intervals of gold mineralisation including 11m @ 1.96g/t Au from 42m and 5m @ 5.9g/t Au from 63m.1 This is part of the Big Duck Project held by Canada listed CBLT Inc (TSX-V:CBLT) which abuts the Coco western boundary.
- Also 8.4km east of Australian listed Superior Lake Resources (ASX:SUP) high-grade Pick Lake / Winston Lake Zinc Project which has a Resource of 2.35 Mt at 17.7% Zn, 0.9% Cu, 0.38 g/t Au and 34 g/t Ag and for which a mine re-start Bankable Feasibility Study was published in August 2019. 2
- Three historical drill holes are known to exist within the centre the property (on three Claims), these were drilled by Falconbridge Copper Corporation in 1984. Drill hole BD6 is reported to have assayed up to 1.74g/t Au although the exact nature of this intersection has yet to be verified by obtaining the historical core logs. The remainder of the property is considered under explored.
- Situated approximately 20 km due north of the town of Schreiber, Ontario on the Trans-Canada highway. Access to the property is via an old logging road and all-terrain vehicle (“ATV”) trails. Big Duck Lake is located on the western side of the property.
COCO EAST CLAIM STATUS
– Consists of a total of 30 Single Cell Mining Claims (“Claims”) covering a total area of circa 6.4km2.
– Claims are valid through to 20 August 2022 upon which they can be renewed on an annual basis. For renewal the Coco East Claims will require an aggregate work spend of CAD$12,000 (circa £6,912) prior to the individual Claim renewal dates.
ACQUISITION TERMS
The vendors of the Option (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was the Vendor of the Hemlo North Gold Project acquired by Power Metal as announced on 21 January 2021.
In exercising the Option to acquire a 100% interest in the Coco East Property POW will make the following cash and equity consideration:
|
Property Name |
Cash (CAD$) |
POW Shares (CAD$) |
Note: POW Acquisition Shares to be issued |
Total Consideration (CAD$) |
|
Coco East |
30,000 |
30,000 |
576,000 |
60,000 |
The POW shares payable as consideration are new ordinary shares of 0.1p each in the Company at an issue price of 3.0 pence per share (“Acquisition Shares”). The cash costs of the acquisition are funded from Power Metal’s existing Canadian Dollar cash account.
The Vendors retain a 2% net smelter royalty (“NSR”) on Coco East, Power Metal may purchase 1% of the NSR, at any time, by making a cash payment to the Vendors of CAD$500,000.
The Vendors will continue to work with Power Metal in the local management of any new properties acquired through this transaction; the development and implementation of exploration plans and the identification of further new opportunities.
EXPLORATION PLAN
– Ongoing exploration spend will be at the discretion of Power Metal as the 100% owner of Coco East.
– Preliminary exploration work is expected to include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.
– The Province of Ontario has an established mineral exploration industry with a large number of local exploration contractors that could be engaged to fulfill the planned work on a cost-effective basis.
Admission And Total Voting Rights
Application will be made for the 576,000 Acquisition Shares to be admitted to trading on AIM, which is expected to occur on or around 2 March 2021 (“Admission”). The Acquisition 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 1,133,718,730 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.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
Reference Sources
1: GTA Resources and Mining Inc announcement, 29 January 2018 https://www.gtaresources.com/assets/jan-29-2018-big-duck-final-re-run-gold-sample.pdf
2: Superior Lake Resources Pick Lake / Winston Lake Zinc Project: https://superiorlake.com.au/pick-lake-winston-lake-zinc-project/#:~:text=The%20Project%20is%20a%20high,ASX%20announcement%2028%20August%202019
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) |
+44 (0) 7766 465 617 |
|
|
|
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
|
|
|
SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
|
|
|
|
First Equity Limited (Joint Broker) |
|
|
David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power 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 metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of 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.
Power Metal Resources #POW adds McKellar, Enable, Magical & Coco East projects to recently acquired Hemlo North Gold Project in Canada
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the Company has signed an option agreement to acquire a 100% interest in four separate gold exploration properties located in the prospective Hemlo and Schreiber area of Ontario, Canada.
The four Option Properties are located within 100km west or southwest of the Company’s new Hemlo North Gold Project (consisting the Dotted East, Olga Lake and Roger Lake 100% owned properties), the acquisition of which was announced on 21 January 2021.
A map showing the Option Properties and the Company’s recently acquired Hemlo North Gold Project may be viewed on the Company’s website through the following link:
https://www.powermetalresources.com/p/236/acquisitions-option-properties-ontario
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“Taken together with our recently acquired Hemlo North Gold Project in the highly prospective Hemlo area of Ontario, Canada, the Option Properties would give Power Metal a significant footprint in the Hemlo/Schreiber district, with ground tenure close to existing mines or other local properties subject to active exploration.
We have moved quickly to secure these interests but given the assessment work involved across four individual properties, we have also secured a 30-day option period to enable due diligence work to be undertaken carefully on the Option Properties (the “Option Period”).
Shareholders will see with our recent actions that we are building a significant portfolio of precious metal interests in North America and that is something we intend to continue should the right opportunities continue to remain available to the Company.”
THE OPTION PROPERTIES:
McKellar
McKellar consists of a total of 58 Mining Claims (“Claims”) (consisting of 49 Single Cell Mining Claims and 9 Boundary Cell Mining Claims) covering a total area of circa 12.3km2. The Claims are valid through to between 7 June 2021 to 26 April 2022 upon which they can be renewed on an annual basis. To meet the requirements for renewal the McKellar Claims will require an aggregate work spend of CAD$23,600 of which CAD$15,200 has already been applied. Therefore, an additional net aggregate work spend of CAD$8,400 (circa £4,838) is required prior to the individual Claim renewal dates.
Underlain by prospective metavolcanic and metasedimentary rock packages, the regional magnetic geophysics shows a possible fold hinge structural setting. The underexplored property is considered prospective for both volcanogenic massive sulphide (“VMS”) copper-lead-zinc mineralisation and orogenic gold deposits. Historical sampling undertaken by Noranda Exploration in 1989 at the historical (1875) Little Pick Silver Mine reported a channel sample of 1.4m @ 13.0% Zn, 7.1% Pb & 678.0 g/t Ag and a trench sample of 1.1m @ 32.3% Zn, 1.1% Pb & 68.4 g/t Ag, with the VMS style mineralisation reportedly being traced over a 600m strike.
Enable
Enable consists of a total of 41 Single Cell Mining Claims covering a total area of circa 8.7km2. The Claims are valid through to 25 July 2022 upon which they can be renewed on an annual basis. To meet the requirements for renewal the Enable Claims will require an aggregate work spend of CAD$16,400 (circa £9,446) prior to the Claims renewal date.
The underexplored Enable property is underlain by gold prospective, greenstone belt, metavolcanic geology and is located on and in proximity to the Terrace Bay batholith contact, which is associated with over 30 known gold occurrences in the wider area.
Magical
Magical consists of a total of 14 Single Cell Mining Claims covering a total area of circa 3km2. The Claims are valid through to 27 July 2022 upon which they can be renewed on an annual basis. To meet the requirements for renewal the Magical Claims will require an aggregate work spend of CAD$5,600 (circa £3,226) prior to the Claims renewal date.
The regional geophysics data shows a possible target related to the intersection of a granitoid intrusion with a regional scale magnetic geophysics lineation. The property is largely unexplored apart from the easternmost Claim cell where, in 1995, Hemlo Gold Mines Inc drilled an induced polarisation (“IP”) geophysics anomaly. Diamond drill hole V95-2 reportedly intersected a 7m zone of silicification containing sericite and sulphides and 12.6m of feldspar porphyry with disseminated pyrite.
Coco East
Coco East consists of a total of 30 Single Cell Mining Claims covering a total area of circa 6.4km2. The Claims are valid through to 20 August 2022 upon which they can be renewed on an annual basis. To meet the requirements for renewal the Coco East Claims will require an aggregate work spend of CAD$12,000 (circa £6,912) prior to the Claims renewal date.
The Coco East property is considered prospective for both mesothermal lode gold and VMS deposits.
It is located on the eastern end of the 4km long Big Duck Lake porphyry intrusion which is associated with 20 gold or gold and base metal occurrences. Almost all of the known gold showings occur along the contact of, or within 1 km of, the outer margin of the main porphyry body.
Coco East is located 8km due east of the Superior Lake Resources Ltd. (ASX:SUP) Superior Lake Zinc Project which contains a VMS style high-grade zinc deposit with a JORC Resource of 2.35 Mt @ 17.7% Zn, 0.9% Cu, 0.38 g/t Au & 34 g/t Ag and a Probable Ore Reserve of 1.96Mt @ 13.9% Zn, 0.6%Cu, 0.2g/t Au & 26.2g/t Ag1.
THE OPTION:
The vendors of the Option (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was the Vendor of the Hemlo North Gold Project acquired by Power Metal as announced on 21 January 2021. Power Metal has secured a 30-day Option to undertake due diligence on the Option Properties.
The non-refundable Option Fee payable to the Vendors is CAD$10,000 payable in cash covering all the Option Properties.
OPTION EXERCISE:
Prior to the Option expiry Power Metal may elect to acquire one or more of the Option Properties.
For the acquisition of a 100% interest in the each of the Option Properties the following cash and equity consideration is payable:
|
Property Name |
Cash (CAD$) |
POW Shares (CAD$) |
Note: POW Shares |
Total Consideration (CAD$) |
|
McKellar |
50,000 |
50,000 |
960,000 |
100,000 |
|
Enable |
30,000 |
30,000 |
576,000 |
60,000 |
|
Magical |
20,000 |
20,000 |
384,000 |
40,000 |
|
Coco East |
30,000 |
30,000 |
576,000 |
60,000 |
|
|
|
|
|
|
|
Total (if all properties acquired) |
130,000 |
130,000 |
2,496,000 |
260,000 |
Upon Option Exercise the POW shares payable as consideration are new ordinary shares of 0.1p each in the Company at an issue price of 3.0 pence per share (“Acquisition Shares”).
The cash costs of the acquisition will be funded from Power Metal’s existing Canadian Dollar cash account.
The Vendors will retain a 2% net smelter royalty (“NSR”) in respect of each of the Option Properties. Power Metal may purchase 1% of each NSR for each Option Property, at any time, by making a cash payment to the Vendors of CAD$500,000 per Property.
The Vendors, will continue to work with Power Metal in the local management of any new properties acquired through this transaction; the development and implementation of exploration plans and the identification of further new opportunities.
The Exploration Plan:
– Ongoing exploration spend would be at the discretion of Power Metal as the 100% owner of the Option Projects.
– Preliminary exploration work planned for the Option Properties will include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.
– The Province of Ontario has an established mineral exploration industry with a large number of local exploration contractors that could be engaged to fulfill the planned work on a cost effective basis.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
References:
Source 1: Superior Lake Resources Limited https://superiorlake.com.au/pick-lake-winston-lake-zinc-project/#:~:text=The%20Project%20is%20a%20high,ASX%20announcement%2028%20August%202019
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
For further information please visit https://www.powermetalresources.com/ or contact:
|
Power Metal Resources plc |
|
|
Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
|
|
|
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
|
|
|
SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
|
|
|
|
First Equity Limited (Joint Broker) |
|
|
David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power 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 metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of 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.
Power Metal Resources #POW – Acquisition of Canadian Gold Exploration Properties
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce the Company has signed an agreement to acquire a 100% interest in a package of three gold exploration projects located in the prospective Hemlo North area of Ontario, Canada.
The Project includes three contiguous exploration projects Roger Lake, Olga Lake and Dotted East which together cover an area of 25.82km2 centred approximately 29km north-east of Barrick Gold Corporation’s Hemlo Mine which has produced more than 21Moz of gold to date1.
The Project map may be viewed on the Company’s website through the following link:
https://www.powermetalresources.com/Uploads/Hemlo_POW_Licences.png
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“The acquisition of three exploration projects covering a significant portion of prospective greenstone belt in mining and investment friendly Ontario is a significant development for Power Metals.
The acquisition comes at a highly competitive time when this part of Canada is attracting a significant amount of investment from Canadian listed junior explorers.
The Project has the potential for both gold and base metal discoveries in an under explored area which offers Power Metal, as a proactive exploration company, the potential to add significant value through early stage exploration success.”
The Project:
– The Project presents an early stage exploration opportunity prospective for hosting both gold and base metal mineralisation, situated over an underexplored part of the very prospective Hemlo-Schreiber Greenstone Belt.
– The Project consists a total of 122 Single Cell Mining Claims (“Claims”) being vended as three contiguous claim packages (exploration projects); Roger Lake (50 Claims); Olga Lake (42 Claims); and Dotted East (30 Claims).
– The 122 claims cover a total area of 25.82km2 and are valid through to between 24 July 2022 to 12 December 2022 upon which they can be renewed on an annual basis. To meet the requirements for renewal the Project claims will require an aggregate work spend of CAN$48,800 (circa £28,113) staged prior to the individual claim renewal dates.
– Access into the area is good with a gravel road running through the centre of the project leading south to Hemlo.
– The Project footprint is located directly adjacent, to west of the Palladium One Mining Inc (TSX-V:PDM) Tyko Ni-Cu-PGE Project where a 2020 drilling programme intersected massive sulphides grading up to 7.5m @ 4.5% Ni, 2.9% Cu & 1.0g/t PGE from 5.3 meters down-hole2 over a mineralised target striking 270m.
– Adjacent and east of the Panther Metals PLC (LSE:PALM) Dotted Lake property where recent surface sampling confirmed high grade gold (18.9g/t Au) at surface3.
The Acquisition Terms:
– The vendors of the Project are established local prospectors who will continue to work with Power Metal in the local management of the Project; the development and implementation of exploration plans and the identification of new opportunities.
– The cost of acquisition of the Project is CAD$120,000 (circa £69,130) of which CAD$60,000 (circa £34,565) will be paid in cash and CAD$60,000 through the issue to the Vendors of 1,152,233 new Ordinary Shares of 0.1p each in the Company at an issue price of 3.0 pence per share.
– The cash costs of the acquisition will be funded from Power Metal’s existing Canadian Dollar cash account.
– The Vendors will retain a 2% net smelter royalty (“NSR”) in respect of the Exploration Properties. Power Metal may purchase 1% in total of this NSR at any time by making a cash payment of CAD$500,000 to the Vendors.
The Exploration Plan:
– Ongoing exploration spend is at the discretion of Power Metal as the 100% owner of the Project.
– Preliminary exploration work planned for the project will include both remote sensing data interpretation and ground-based fieldwork with systematic soil sampling and geophysics expected to yield defined targets for future drill testing.
– The Province of Ontario has an established mineral exploration industry with a large number of local exploration contractors that could be engaged to fulfill the planned work on a cost effective basis.
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 1,152,233 Acquisition Shares to be admitted to trading on AIM, which is expected to occur on or around 28 January 2021 (“Admission”). The Acquisition 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 1,062,775,868 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.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
References:
Source 1: Barrick Gold Corporation https://www.barrick.com/English/operations/hemlo/default.aspx
Source 2: Paladium One Mining Inc announcement https://www.palladiumoneinc.com/assets/docs/news/2021-01-19-NR-PDM-B1D54LTo0P.pdf
Source 3: Panther Metals PLC announcement https://polaris.brighterir.com/public/panther_metals/news/rns/story/x5ojz0r
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
For further information please visit https://www.powermetalresources.com/ or contact:
|
Power Metal Resources plc |
|
|
Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
|
|
|
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
|
|
|
SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
|
|
|
|
First Equity Limited (Joint Broker) |
|
|
David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power 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 metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently the subject of 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.