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Power Metal #POW – Acquisition Complete – Berringa Gold Mine
Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update in relation to its joint venture (“JV”) subsidiary New Ballarat Gold Corporation PLC (“NBGC”), which is focused on the prolific Victorian Goldfields of Australia. The JV is held between Power Metal (49.9%) and its partner, London-listed Red Rock Resources PLC (50.1%).
Red Rock Australasia Pty Ltd (“RRAL”), the 100% owned Australian operating subsidiary of NBGC, entered an agreement (“Agreement”) on 6 July 2022 to acquire the exploration licence EL5535 covering the historic Berringa Mine (“Berringa” or the “Project”) from Balmaine Gold Pty Ltd (“Vendor”) which is a wholly owned subsidiary of Golden Point Group Pty Ltd (“GPG”), itself the subsidiary of Shen Yao Holdings Ltd, a company listed on the Singapore Exchange (the companies collectively being the “Vendor Group”).
The original announcement in respect of the Agreement may be viewed through the link below:
A map highlighting the location of the Project may be seen on the Company’s website through the following link:
https://www.powermetalresources.com/berringa-map-2/
ACQUISITION COMPLETION
· EL5535 has now been successfully transferred to RRAL, which now holds a 100% interest in the exploration licence.
· RRAL has paid the initial consideration of AUD$20,000 to the Vendor, with further milestone consideration payments detailed in the Further Information section below.
· RRAL are finalising a detailed exploration plan for the period up to and following the five year renewal being applied for to the licence which expires on 16 November this year, which will include planned drilling at EL5535. The exploration plan will be based on abundant historical exploration data available, allowing for highly refined drilling programme design.1,2
· Planned drilling will test for extensions of known gold mineralisation at the Berringa Gold Mine, which has historical production of 293,250 ounces of gold (Au) from 1898-1952 at an average grade of 8.3g/t Au.1
· The focus of planned drilling is to demonstrate the remaining gold endowment which as outlined in 2004 and 2014 technical reports, includes possible exploration target ranges down to 1000m of 0.91 to 3.89million*,** and 0.70 to 2.91million*,** ounces of Au respectively.1,2 Further details in respect of these exploration targets are provided below.
· RRAL is in ongoing discussions with the Vendor Group, regarding the possibility of processing ore at their nearby Ballarat Gold Mine (located approximately 25km away), should RRAL discover and develop an economic deposit. This arrangement would dramatically reduce both mine build-out time horizons and heavy capital requirements for building a new standalone processing facility.
Paul Johnson, Chief Executive Officer of Power Metal Resources PLC commented:
“Investors often tell me of their excitement with regard to New Ballarat Gold Corporation and the opportunity it represents. We share that excitement as NBGC holds a significant land position in the Victoria Goldfields of Australia, which across its footprint has extensive evidence of gold prospectivity.
Centered in Ballarat we have an established operational team who have been running the local operations diligently and building the potential across the licence areas we hold. These licence areas contain advanced opportunities, with a number of high-grade former producing mines and also the wider blue-sky exploration potential that offers the potential for significant valuation uplift on discovery.
Power Metal is keen to see NBGC flourish, and today’s news is an important step forward.”
FURTHER INFORMATION
Exploration Licence 5535 was previously held by Balmaine Gold Pty Ltd, which is a wholly owned subsidiary of Golden Point Group Pty Ltd (“GPG”), itself the subsidiary of Shen Yao Holdings Ltd, a company listed on the Singapore Exchange (the companies collectively being the “Vendor Group”).
GPG are the owners of the nearby Ballarat Gold Mine, which has annual production guidance of 40,000 to 50,000 ounces of gold per year.4
The Vendor Group’s licence has its origins in the acquisition of the tenement area in 1998 with the view of the tenement, supplying additional gold to the nearby Ballarat Mine. After passing through Lihir Gold, the tenement came into the hands of the Vendor Group. The mining licence was surrendered in 2014, with an exploration licence covering the same area then being granted to the Vendor. For various reasons, the work on the tenement has not been as extensive as planned.
A 2004 Berringa Exploration Strategy Technical report was produced by Hamish Forgan & Steven Olsen on behalf of a previous owner of the Licence, Ballarat Goldfields NL (“Ballarat Goldfields”). Mr Olsen was an employee of Ballarat Goldfields and a compent person as defined by the JORC code. The 2004 report highlighted a proposed exploration target ranging from 913,488 to 3,889,718 ounces of gold down to a depth of 1000m at Berringa.2
Subsequently, on the surrender of the previous mining licence, a further technical report was prepared which summarised the findings from work undertaken from 1992 to October 2014. The 2015 report was produced by Jason Fothergill on behalf of the operators at the time, Caslemaine Goldfields Pty Ltd. Within the 2015 report, an updated proposed exploration target was calculated and which ranged from 697,112 to 2,907,790 ounces of gold down to a depth of 1000m.1 The results from this report are summarised in the below table.*,**
|
Depth Extent |
Theoretical tonnage |
Assumed Grade |
Target Size |
Risk Weighted Exploration Target |
|
0 – 300m |
475 – 2,974k t |
5.8 – 14.2g/t Au |
554k oz. Au |
217k oz. Au |
|
300 – 600m |
494 – 5,793k t |
5.8 – 14.2g/t Au |
1.080 Moz. Au |
225k oz. Au |
|
600 – 1,000m |
558 – 6,827k t |
5.8 – 14.2g/t Au |
1.273 Moz. Au |
255k oz. Au |
|
TOTAL |
1.5 to 15.6 Mt |
5.8 -14.2g/t Au |
2.907 Moz. Au |
0.697 Moz. Au |
*The exploration targets tabled above are not to be considered as an estimate of a Mineral Resource or Ore Reserve as those terms are defined in the JORC (2012) Code. The potential quantity and grade is conceptual in nature, that there has been insufficient exploration to estimate a Mineral Resource It is uncertain if further exploration will result in the subsequent estimation of any Mineral Resource. A drilling programme planned to test the valididy of the exploration target outlined above is currently being planned, and details will be included in the licence renewal application which will be submitted prior to the expiration date of 16 November 2022. Further updates regarding the proposed drilling programme will be supplied to the market in due course.
**The top end of the exploration target ranges produced represents the total ounce potential that would exist if each target area (0-300m, 300-600m, 600-1000m) had the same gold endowment as the historically mined orebodies at Berringa. Several risk factors were applied to the above calculation, which take into account the unknown location of various faults, folds and diltational jogs down to 1000m. The low end of the exploration target range reflects the full application of all calculated risk factors to the top end estimate.
Transaction Terms
For the purchase of 100% of the Vendor’s interest in the Licence to RRAL, covering the historical Berringa Gold Mine, the following consideration is payable:
· The issue to the Vendor staged cash payments totalling AUD$500,000 as outlined below:
o Initial payment of AUD$20,000 payable on successful transfer of the exploration licence to RRAL. This payment has now been made.
o On successful renewal of the Licence for an additional term of 5 years, which currently expires on 16 November 2022, an additional payment of AUD$130,000, which can be satisfied through the issue of either cash and/or publically traded shares.
o On public release of a initial JORC Compliant resource estimate of greater than 100,000 cumulative ounces of gold in the Inferred category, a further payment of AUD$350,000, which can be satisfied through the issue of either cash and/or publically traded shares.
· Upon the successful commencement of commercial production, a 1.5% Net Smelter Return (“NSR”) royalty will be issued to the Vendor over the Licence, with total payments capped at AUD$1,500,000 over the life of the NSR royalty.
· RRAL inherits the responsibility for a pre-existing 2.5% NSR Royalty, with total payments capped at AUD$50m, payable to Altus Strategies Plc. This royalty is part of a wider royalty covering actual or potential gold production from a number of licences including that from the Ballarat gold mine. Of the AUD$50m, to date AUD$14.5m has been received by the royalty holder and therefore AUD$35.5m of the capped amount remains.5
New Ballarat Gold Corporation
NBGC through its wholly owned local operating subsidiary RRAL, holds a strong land position comprising 15 granted exploration licences for a total area of 1,841km2 within the gold fields of Victoria, Australia, principally around the mining centre of Ballarat.
5 licences covering 493km2 await grant. The company has carefully assembled its portfolio of properties comprising a broad range from robust exploration targets to near term resource potential, all of which remain largely undeveloped by modern explorers.
With the first tenements granted only in 2021, RRAL has already conducted detailed exploration of its initial targets, including a diamond drill test of two prospects starting in December 2021.
References
1 Final Technical Report Berringa Gold Project MIN 4191 Oct 2014. J Fothergill Balmaine Gold Pty Ltd
2 Berringa Exploration Strategy Technical Report: Sept 2004, H Forgan
3 Sharp, D. & Sheerin K: OreTech Mining Solutions – Tenement Review and Exploration Strategy – EL007330 Daylesford. Unpublished independent geologist report prepared for Red Rock Australasia Pty Ltd. (2020).
4 https://ballaratgoldmine.com.au/our-mine/
5 Royalty Overview Dashboard – Altus Strategies ( https://altus-strategies.com/projects/royalty-dashboard/caserones-2/ )
QUALIFIED PERSON STATEMENT
The technical information in this report is compiled by David Holden, BSc, MBA, MEM, who is a member of the Australian Institute of Geoscientists and a director of NBGC, and the Executive Officer and Exploration Manager of RRAL. He is a member of a recognised professional organisation and has sufficient relevant experience to qualify as a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, published by AIM.
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.
Power Metal #POW – Molopo Farms Complex, Botswana – Drilling Underway
Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update in relation to the Molopo Farms Complex Project (“Molopo Farms” or the “Project”) targeting a large-scale nickel-copper-platinum group element (“PGE”) discovery in southwestern Botswana.
On 15 September 2022 the Company announced an update regarding progress being made towards the first Power Metal managed and operated diamond drilling programme at Molopo Farms. The link to this announcement is below:
HIGHLIGHTS
Drill Programme
§ Power Metal’s inaugural drilling campaign at Molopo Farms has now commenced.
§ Diamond core drilling at drillhole DDH1-6B is now underway and is targeting a large southerly dipping conductor that was identified by the Company’s recently completed moving loop electromagnetic (“MLEM”) geophysics survey over the priority Target area 1-6 (“T1-6”).
§ DDH1-6B is located 530m to the south of December 2020 drill hole KKME 1-6 which intersected significant nickel mineralisation 1, 2 subsequently interpreted to be on the edge of a large electromagnetic (“EM”) conductor.
§ The second diamond core drillhole DDH 1-6C planned for the ongoing drilling campaign will be located 830m to the south of KKME1-6. Site preparations are underway and will be completed shortly.
Geophysics
§ Additional ground magnetic and MLEM geophysics surveys over target areas 1-3, 2-3 and 1-14 have now been completed.
§ Preliminary geophysical data has now been received, and the Company is now compiling and interpreting these results.
§ Power Metal will release a further update to the market in due course with the findings of this geophysical work and the additional drill targets derived from the analysis undertaken.
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
“The world needs security of metal supply, which is enhanced if from a stable and supportive operating environment, such as Botswana.
Molopo Farms presents the possibility for a district scale nickel exploration opportunity, with priority drill target T1-6 expected to be the first in a series of prospective drill targets based on current geophysical work and exploration planning.
We are targeting a large-scale nickel-copper-PGE discovery or discoveries, which would be transformational for the Company and, importantly, may lead to Molopo Farms being a focal point for investment and lead to significant job creation and opportunity.
We are therefore enthused with the opportunity the Molopo Farms Complex Project offers and are particularly pleased to announce the commencement of drilling.
I appreciate all our shareholders, and other current and potential stakeholders in the Project, will be watching developments with interest.”
FURTHER INFORMATION
Figure 1 – Molopo Farms Complex Project Plan Map: A plan map of the Project area, including the location of various elements mentioned above is outlined in Figure 1 below.
Figure 2 – Priority Target Area T1-6 Cross-Section: A cross section showing the location of the first two planned holes, DDH1-6b and DDH1-6c, can be found in Figure 2 below.
Image – Diamond Drill Rig in Position at K1-6: In addition, an image of the drill rig at hole DDH1-6b is provided below, after positioning with the azimuth and dip set for drilling.
The diagrams and image presented above may also be viewed on the Company’s website through the following link:
https://www.powermetalresources.com/molopo-farms-complex-drill-commencement/
Further photographs and videos from the drill programme are and will be available on the Company’s website gallery section, through the following link:
https://www.powermetalresources.com/investors/gallery/molopo-farms-complex-botswana/
PROJECT BACKGROUND AND OWNERSHIP
Power Metal currently has a current circa 53% effective economic interest in Molopo, held through a direct project interest and a shareholding in partner Kalahari Key Mineral Exploration (Pty) Ltd (“KKME”). On 18 May 2022 Power Metal announced a conditional transaction that would see its interest in Molopo Farms increasing to 87.71% (the “Transaction”). The announcement may be viewed through the following link:
https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701
As part of the Transaction, Power Metal will become the Project operator and in advance of completion the Company is working with the team at KKME to maintain momentum with regard to Project exploration.
Work streams are also in process to secure Botswana regulatory approvals enabling the Transaction to complete.
QUALIFIED 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 Qualified 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
1: Power Metal PLC announcement, Botswana Molopo Farms Complex – Drilling Progress Update, 14 December 2020
( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq269w )
2: Power Metal PLC announcement, Significant Nickel Intersections Confirmed by Drill Sample Assay Results, 8 April 2021
( https://polaris.brighterir.com/public/power_metal_resources/news/rns/story/rmq7mnw )
Power Metal #POW – Reitenbach Uranium Disposal – Progress Update
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a progress update in respect of the conditional disposal of its Reintenbach uranium property (“Reintenbach” of the “Property”) located east of the Athabasca Basin in Northern Saskatchewan, Canada.
The conditional disposal of Reitenbach to Teathers Financial Plc (“Teathers Financial” or “Teathers”), was announced on 8 August 2022 and may be viewed through the following link:
Teathers is an unlisted public company which is planning an initial public offering (“IPO”) on the London capital markets. Subject to the conditional terms of the agreed Property Purchase Agreement (the “Agreement”) being met, the Power Metal group would be expected to hold an estimated 40-55% interest in the newly listed company.
HIGHLIGHTS
§ Teathers to be renamed Uranium Energy Exploration PLC for its planned listing on the London capital markets.
§ Preparations for planned listing progressing well and £125k pre-IPO fundraising round completed.
§ Multiple significant uranium prospective anomalies identified across the Property.
§ A significant ‘New Lake Geochem Zone’ has been identified which is demonstrated by high-
tenor uranium results from historical lake sediment geochemical sampling
§ Additional staking of 1,333 hectares (13.33Km2) completed to cover new prospective zone and increasing the size of the Property to 15,979 hectares (159.79km2).
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“The planned disposal of the Reitenbach uranium Property into what will be Uranium Energy Exploration PLC is progressing well, with significant corporate and technical progress having been made in the last 4 weeks since the transaction was announced.
We are seeing uranium shares move sharply higher across UK, Canadian and Australian exchanges, reflecting the increasing recognition across the globe of an urgent need for the uptake in utilisation of nuclear power generation.
Regrettably the UK capital markets do not have many uranium focused shares, and there is limited opportunity for UK investors to participate in the uranium sector. This new planned listing will add another opportunity, and we understand the investor engagement thus far, has demonstrated there is a great deal of interest.
Should you wish to be kept informed of developments, please email info@uraniumenergyexploration.com.”
FURTHER INFORMATION
Corporate:
– Teathers Financial recently completed a £125,000 pre-IPO financing.
– Teathers has secured the company name, Uranium Energy Exploration and ticker symbol UEE, in advance of its planned listing on the London capital markets in the near term.
– Teathers has also secured the website holding page (https://uraniumenergyexploration.com) as well as the Twitter handle @uranium_energy as it continues to build out its online presence.
Reitenbach Technical:
Prior to the acquisition of the Property becoming unconditional, Power Metal’s technical team have continued to undertake exploration work on the Property. The outcome of that work is outlined below.
– Hyperspectral remote sensing analysis utilising Sentinel-2 satellite data on hydrogen and helium gas reflectance was recently obtained over the Reitenbach area. The results of this spectral survey highlighted the existence of several anomalies located across the Property.
– These spectral results, combined with government and historical geophysical data, have allowed for the refinement of several high-priority targets for inspection during future work programmes, which includes a strong northeast-southwest trending anomaly in close proximity to the original ‘Lake Geochem Zone’ identified in 2021 by Power Metal.
– A significant ‘New Lake Geochem Zone’ was also identified through further historical data digitisation, which includes lake sediment sample results up to 346ppm Uranium (“U”) (with 6 results returning > 285ppm U) which represent very high tenor results for this type of geochemical sample. The combined Lake Geochem Zone now stretches for greater than 7km.
– The spectral results also have highlighted a significant hydrogen and helium anomaly present along the regionally important Needle Falls Shear Zone.
– As a result of the spectral results and the identification of the ‘New Lake Geochem Zone’, an additional 1,333 hectares have been claim staked (13.33 km2), bringing the total Property area under licence to 159.79 km2. The new ground staked covers the extension of a northeast-southwest trending uranium-rich boulder train as well as spectral anomalies identified at the ‘New Lake Geochem Zone’. All Reitenbach Property claims are being held by Power Metal, in trust for Teathers, pending completion.
A map highlighting the newly staked area and results from the ‘New Lake Geochem Zone’ be viewed on the Company’s website through the following link:
https://www.powermetalresources.com/reitenbach-property-overview-sept-22/
New UK Investor Magazine Podcast – Lloyds #LLOY, Rio Tinto #RIO, GreenX Metals #GRX and Power Metal Resources #POW
We record this Podcast in the midst of earnings season with updates from blue chips companies flooding in from Europe as well as across the pond.
The earnings picture has been mixed, but notably better than investor sentiment would suggest. We discuss upcoming rate hikes from the Fed and market positioning ahead of their decision tonight.
In the current earnings season, US companies have consistently beaten on revenue but there have been misses on profitability.
We focus on Lloyds and Rio Tinto who both provide attractive dividends, but are being impacted in different ways but the current macro environment.
We finish by providing updates on two junior resource companies in Power Metal Resources and GreenX.
Lloyds, Rio Tinto and the European Earnings Season with Alan Green
Power Metal Resources #POW – Canadian Lithium Projects – Earn-In Update
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update in respect of its earn-in agreement to acquire 100% of the Authier North and Duval East lithium properties (“Authier North” and “Duval East”, collectively the “Properties”), located in the prolific Val D’Or mining camp in Quebec, Canada (the “Earn-In”).
The Authier North and Duval East Earn-In interest is held by Power Metal’s wholly-owned Canadian subsidiary Power Metal Resources Canada Ltd (“POW Canada”) which is focused on strategic energy metal opportunities within Canada’s top mining jurisdictions.
EARN-IN AGREEMENT CONTINUATION
The Earn-In agreement was originally signed in July 2021 and a link to the announcement covering this is below:
https://www.londonstockexchange.com/news-article/POW/agreement-canadian-lithium-properties/15061434
The Earn-In is staged with annual decision points to consider continuation into the next year and Power Metal have notified the property owner that the Company will continue into year two of the Earn-In.
RATIONALE FOR CONTINUATION
· On the back of strong lithium price fundamentals, and continued success at the neighbouring Sayona Mining Limited (“Sayona Mining”; ASX: SYA) Authier Lithium Project (“Authier Project”), Power Metal has made the decision to continue into the 2nd year of the Authier North Lithium Earn-In.1
· The Company engaged a Canada-based lithium geologist to produce a Property Evaluation report (the “Evaluation”). The Evaluation considered the Authier North 2021 programme results, as well as the ongoing results from the neighbouring Authier Project in order to determine next exploration steps.
· On 1 March 2022, Sayona Mining announced a doubling of their Quebec lithium resource base, including an updated JORC (2012) compliant Measured, Indicated and Inferred Mineral Resource at their Authier Project of 17,136,000 tonnes at 1.01% Li20.2
· The Sayona Mining updated Authier Project Resource model includes the further downdip extension of their main lithium-bearing pegmatite dyke towards Power Metal’s Authier North Property, as well as the establishment of an additional, sub-parallel pegmatite dyke which outcrops approximately 350m closer to the shared claim border with Authier North.2 This newly discovered dyke also dips towards the Authier North Property.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“Power Metal’s Authier North and Duval East lithium Properties represent a strategic lithium interest for the Company with a footprint adjacent to the highly successful Authier Project held and operated by Sayona Mining.
Our work has identified priority lithium targets and we intend to continue our ground exploration work at the Properties in the near future.”
PROPERTY EVALUATION AND EXPLORATION NEXT STEPS
The evaluation that was completed highlighted a priority Target Area (the “Target”) on the Authier North Property that was not investigated by the Company during the 2021 programme. This Target is located near the eastern property boundary, where there is a contact zone between the La Motte Batholith (granitic intrusive) and the surrounding metasediments. This contact zone represents an analogous geological setting to that of lithium-bearing pegmatite dyke constituting the Authier Project Mineral Resource, which is located approximately 2km along strike to the west.
Power Metal will be sending a geologist to site in order to geologically map and prospect the approximately 800m of strike-length of this contact zone which exists within the Authier North Property. The next exploration steps for the property will be planned based on the findings of this work.
EARN-IN CONTINUATION PAYMENTS
By continuing into the second year of the Earn-In with Eagle Ridge Mining Limited, the following has become payable:
· Cash payment of CAD$25,000.
· Share-based payment of CAD$50,000, which is satisfied by the issue of new ordinary shares with the price determined using a 10-day volume weight average price (“VWAP”) over the period 27 June to 8 July 2022. That VWAP is 0.85859p per share, and at the current exchange rate, CAD$50,000 is equivalent to £32,197, so 3,749,985 new Power Metal ordinary shares of 0.1p each (“Earn-In Shares”) will be issued to Eagle Ridge Mining Limited.
Once issued, the Company has satisfied all requirements outlined in order to proceed to year 2 of the Earn-In. Prior to the expiry of two years from the date of the Earn-In original agreement, Power Metal must incur CAD $50,000 in exploration costs on the Property.
FURTHER INFORMATION
Authier North Property
The Authier North Property consists of fifteen (15) mineral claims covering an area of approximately 560-hectares and is prospective for lithium-bearing pegmatites and base-metal mineralisation.
The Authier North Property shares an extended claim border with Sayona Mining’s Authier Lithium Project which hosts a JORC (2012) compliant Measured, Indicated and Inferred Mineral Resource of 17.1Mt at 1.01% Li2O (Lithium Oxide). The deposit is less than 700m from the shared claim boundary.
Sayona Mining published a revised Definitive Feasibility Study (“DFS” reported 11 November 2019 3) on their Authier Lithium Project. This DFS highlighted a net present value (discount factor 8%) of CAD$216 million and a pre-tax internal rate of return at 33.9% based on a Proven and Probable Ore Reserve estimate of 12.10 Mt @ 1.00% Li2O at a 0.55% Li2O cut‐off grade.
Additionally, on 11 January 20214, Sayona Mining announced a strategic partnership and offtake agreement with Piedmont Lithium Limited (ASX:PLL, Nasdaq:PLL) which includes a 25% ownership stake in Sayona Quebec (a wholly owned subsidiary of Sayona Mining), as well as 50% (60,000 tpa) offtake agreement for future production from the Authier Lithium Project. Sayona Mining reported they expect full commercial production of spodumene concentrate to commence between July 2023 and July 2024.
Very little historic exploration has been completed on the Authier North Property, with reports of five short drillholes completed in 1955 by Lyndhurst Mining Company Ltd (four of which returned elevated lithium and nickel assays), and only 4 rock samples which returned strongly anomalous chromium and nickel results (up to 0.42% Cr203 (Chromium (III) Oxide), and 0.21% nickel).
Duval East Property
The Duval East Property is located 3km east of the Authier North property and is located immediately east of a historical, non-compliant Duval lithium oxide resource. It is postulated that the geology containing the historical resource may extend towards the east onto the Duval East Property.
GLOSSARY
Batholith – large body of igneous rock formed beneath the Earth’s surface by the intrusion and solidification of magma.
contact zone – Where two differing geological units are in contact with each other.
Dyke – An intrusion of igneous rock cutting across existing strata.
Granite – A coarse-grained (phaneritic) intrusive igneous rock composed mostly of quartz, alkali feldspar, and plagioclase.
Meta-sediments – Partially metamorphosed sedimentary rocks.
Pegmatite – An igneous rock showing a very coarse texture, with large interlocking crystals usually greater in size than 1 cm (0.4 in) and sometimes greater than 1 meter (3 ft). Most pegmatites are composed of quartz, feldspar, and mica, having a similar silicic composition to granite.
REFERENCES
1: https://tradingeconomics.com/commodity/lithium
2: Sayona Mining Limited, ASX announcement dated 1 March 2022: https://sayonamining.com.au/wp/wp-content/uploads/2022/03/SYA_Doubling-resource-base_1-Mar-22.pdf
3: Sayona Mining Limited, ASX announcement dated 11 November 2019: https://sayonamining.com.au/wp/wp-content/uploads/2019/11/SYA_ASX-Announ_20191111_Revised-Authier-DFS.pdf
4: Sayona Mining Limited, ASX announcement dated 11 January 2021: https://sayonamining.com.au/wp/wp-content/uploads/2021/01/SYA_ASX-Announ_20210111_Piedmont-Transaction.pdf
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.
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 3,749,985 Earn-In Shares to be admitted to trading on AIM which is expected to occur on or around 19 July 2022 (“Admission”). The Earn-In 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 1,480,786,146 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:
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Power Metal Resources plc |
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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) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
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 internal exploration programmes completed or underway, with results awaited, as outlined in the table below.
Exploration work programmes may also be underway within 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:
www.firstdevelopmentresources.com
Power Metal also holds a material investment in Kavango Resources plc with exploration updates available through their regulatory announcements and on their website:
|
Project |
Location |
Current POW % |
Work Completed or Underway |
Results Awaited |
|
Alamo Gold Project |
USA |
Earn-in to 75% |
Technical reports received following excavation of multiple test pits and mapping & sampling completed. |
Analysis of technical reports and potential follow-on work programme under review. |
|
Athabasca Uranium |
Canada |
100% |
Data compilation across uranium properties. |
Interpretation results from all Properties complete. Next steps upcoming. |
|
Authier North Lithium |
Canada |
Earn-in to 100% |
Property Evaluation Report completed. |
Update covering exploration plans for target areas identified during the Evaluation. |
|
Molopo Farms |
Botswana |
53%# |
Comprehensive data review complete and establishment of data room for third party review. |
Finalise next exploration steps and action plan. |
|
Victoria Goldfields |
Australia |
49.9% |
Diamond drill programme completed. Review of Ajax & Berringa mine remaining resource potential.
|
Final drill programme results analysis and resource potential analysis from former high-grade producing mines in granted licences. |
# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%
Power Metal #POW – Interim Results
Power Metal Resources plc, the London listed exploration company seeking large-scale metal discoveries across its global project portfolio , announces its unaudited interim results for the six month period ended 31 March 2022.
Paul Johnson, Chief Executive Officer of Power Metal commented: “There is an underlying confidence and optimism that permeates the Power Metal business and the team within it.
We recognise the pressure challenging markets and falling share prices place on investor portfolios and are respectful of this whilst still enthusiastically articulating our progress and our ambitions.
Power Metal is at a key point with all projects having been the recipient of varying extents of exploration, which has been a substantial exercise given the breadth of our portfolio.
Where appropriate we are pursuing accelerated value crystallisation by preparing parts of our business for spin-out/disposals as you will see in the summary table below. Our internal exploration efforts will be focused on a smaller group of retained projects.
From this point acquisitions will be principally targeting additional uranium opportunities where we do see the value of continued growth of the uranium portfolio within our company.
My thanks go to the Power Metal team for their demonstrable commitment to progressing our business and to shareholders who have backed our work to date. Our ultimate objective is to deliver considerable financial returns to our shareholders and our focus to date has been to build a company capable of delivering that through volatile markets.
My very best to investors in the junior resource sector, a unique group of people willing to risk their capital, in a highly volatile sector, to deliver a financial return and enhanced opportunities in life. For those allocating capital to Power Metal we will strive to help you succeed in your ambitions.”
NOTE:
The interim report contains the following key sections:
– Key Developments in the half year to 31 March 2022;
– Power Metal Interests as at today’s date;
– Operational Highlights for the half year to 31 March 2022;
– Operational Highlights after the half year end (April 2022 to date);
– Financial Highlights for the half year ended 31 March 2022; and
– Interim Financial Accounts for the half year ended 31 March 2022
Power Metal plans to release its next Quarterly Business and Operational Update for the second quarter in July, capturing latest developments within the business in addition to the information provided below.
KEY DEVELOPMENTS IN THE HALF YEAR TO 31 MARCH 2022
The half year period included extensive exploration activity including:
– Reverse circulation (RC) drilling at the Tati Project located in Botswana.
– Delineation of 12 airborne magnetic targets at the Ditau Project in Botswana and commencement of diamond drill programme.
– Diamond drilling at the Haneti Project in Tanzania.
– Diamond drilling at the Victoria Goldfields in Australia.
– Confirmation of bonanza silver from diamond drilling at the Silver Peak Project located in British Columbia, Canada.
– High-grade uranium confirmed from sampling undertaken at the Saskatchewan uranium property portfolio.
The half year period also included extensive corporate activity including:
– Acquisition of the Pilot Mountain Project which hosts a robust tungsten-dominated Mineral Resource Estimate (MRE) located in Nevada, USA, and forming the completed Golden Metal Resources plc (“Golden Metal Resources”) planned listing vehicle.
– Acquisition of the Western Australia and Northern Territory projects comprising the planned listing vehicle First Development Resources Ltd.
– Grant of key exploration licences, environmental approvals, and heritage agreements across various of the Company’s global project interests.
– Completion of the disposal of the Company’s Schreiber-Hemlo interests located in Ontario, Canada, to First Class Metals PLC who plan to list in London in 2022.
– Expansion of the Company’s uranium interests surrounding the Athabasca basin located in Saskatchewan, Canada, and preparation of data rooms and factsheets for 7 uranium properties.
POWER METAL INTERESTS AT TODAY’S DATE
|
Country |
POW % |
Project Package |
Resources Targeting |
Status |
|
Australia |
49.9% |
New Ballarat Gold Corporation Victoria Goldfields JV |
Gold |
Balance of drill results awaited – Planned IPO |
|
Australia |
82.78%* |
First Development Resources |
Copper – Gold – Uranium – Rare Earths – Lithium |
Planned IPO in progress |
|
Australia |
100% |
Gawler Project |
Copper – Gold |
Awaiting licence grants |
|
Botswana |
52.60%# |
Molopo Farms Complex |
Nickel – Copper – Platinum Group Metals (PGMs) |
Transition of ownership then drilling. |
|
Botswana |
100% |
Tati Greenstone Belt |
Gold – Nickel |
Preparations for next step drilling key gold targets |
|
Botswana |
50% |
Kalahari Copper Belt JV |
Copper – Silver |
Exploration underway to delineate drill targets |
|
Botswana |
50% |
Ditau Camp JV |
Rare Earths |
Diamond drilling underway – await assays |
|
Canada |
30% |
Silver Peak |
Silver |
Ongoing discussion of exploration plans & corporate options |
|
Canada |
Earn-in up to 100% |
Authier North |
Lithium |
Finalisation of next stage exploration steps |
|
Canada |
100% |
Athabasca Basin |
Uranium |
Finalisation of next stage exploration steps & corporate options |
|
Canada |
36.3% |
First Class Metals |
Gold – Nickel – Copper – Zinc |
Planned IPO in Progress |
|
Tanzania |
35% |
Haneti |
Nickel – Copper – Platinum Group Metals (PGMs) – Gold – Lithium |
Finalisation of next stage exploration steps & corporate options |
|
USA |
83.13% |
Golden Metal Resources |
Gold – Silver – Copper – Tungsten – Zinc |
Planned IPO in Progress |
|
USA |
Earn-in up to 75% |
Alamo Gold |
Gold |
Review of detailed exploration report findings |
* Reducing to 62.12% after Completion of the Pre-IPO Financing
# Subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%
OPERATIONAL HIGHLIGHTS FOR THE HALF YEAR TO 31 MARCH 2022
African Project Interests
Tati Greenstone Project
· In October 2021 a 1,000m RC drill programme was commenced at the Tati Project located in the Tati Greenstone Belt of north-eastern Botswana. The main goal of the drill programme was to test for the presence of geological formations which host nearby operating Gold (Au) and Nickel (Ni) mines within the Tati Greenstone Belt.
· Results from the 1,000m RC drilling programme were released after the period end and are outlined below.
Molopo Farms Complex Project
· In November 2021 Kavango Resources PLC (LON:KAV “Kavango”) signed an option agreement with Kalahari Key Mineral Exploration Pty Limited (“KKME”), the holder of a 60% interest in the Molopo Farms Complex Project (Power Metal holds the remaining 40%). The option agreement was to acquire 100% of the outstanding KKME shares.
· The option was extended on two occasions but in February 2022, Kavango withdrew, unable to agree the final terms for acquisition with all shareholders. In May 2022, as outlined below, Power Metal secured a conditional agreement to acquire an additional 58.7% of the remaining KKME shares to take its overall shareholding in KKME to 87.71%.
· Following completion of the 2021 diamond drill campaign, in January 2022, the Company announced the renewal for 2 years of two key prospecting licences covering the Molopo Farms Complex Project:
– PL310/2016 (221.4km2)
– PL311/2016 (486.2km2)
Kanye Resources Joint Venture
· The Kanye JV includes 4,257km2 of ground within the Kalahari Copper Belt (“KCB”) located in northern Botswana over ten prospecting licences. During the period, ground exploration and drill target planning continued in the KCB, and in October 2021, the JV confirmed approval of the Environmental Management Plan (“EMP”), clearing the last key administrative hurdle, and enabling drilling to be undertaken subject to the results of the ongoing target refinement.
· The Kanye JV also includes the Ditau Camp Project (“Ditau” or the “Ditau Project”) located in southwestern Botswana, which is considered to be prospective for rare-earth element (“REEs”) and base-metal mineralisation. In March 2022, the Company announced the identification of 12 airborne magnetic targets the Ditau Project with the highest profile targets selected for inclusion in a diamond drill programme which commenced following the period end. The targets included:
– i10 Target (a discrete circular airborne magnetic anomaly with a diameter of 2.2km)
– i8 Target (a larger ring-like anomaly with a diameter of 4km)
– i1 Target (that may represent a large, 7km x 18.5km intrusive complex)
· Whilst the drilling campaign would primarily target REE mineralisation hosted within interpreted carbonatites or felsic intrusives, the targets could also be related to layered mafic intrusive systems, which are considered by the Company to be prospective for nickel, copper, and platinum group element (“PGE”) mineralisation.
Haneti Project
· In January 2022, the Company announced the commencement of the inaugural diamond drill campaign at the Haneti Project targeting nickel-copper-cobalt and PGE magmatic sulphide mineralisation.
· By February 2022, the drill campaign had successfully completed a total of 900.04 meters of drilling; intersections of serpentine and gabbroic rocks were identified and following core logging the project moved into the sampling and testing phase.
· Assay results from the sampling and testing phase were released after the period end and are outlined below.
Australian Project Interests
New Ballarat Gold Corporation (Victoria Goldfields JV)
· The JV with Red Rock Resources plc (LON:RRR) had previously submitted licence applications over c. 2,300km2 of ground within the prolific Victorian goldfields, and during the period saw further licence applications granted. By December 2021, a total of 9 exploration licences were granted covering 1,501km2, several of which cover high priority exploration targets.
· Various desktop and field exploration work continued through the period and in December 2021, inaugural diamond drilling commenced targeting gold mineralisation at the O’Loughlin’s and Mt. Bute prospects.
First Development Resources
· In October 2021, the Company announced that its wholly owned subsidiary First Development Resources Ltd (“FDR UK”), had acquired outright First Development Resources PTY Limited (FDR Australia), an Australian private company holding 4 granted exploration licence interests and one licence application interest in Western Australia. Additionally, a A$165,000 government co-funding drilling support grant was awarded for the Wallal Project held by FDR Australia.
· FDR UK commenced preparations for a UK listing, and in November 2021, announced FDR Australia had acquired URE Metals PTY Limited, the holder of three exploration licence applications covering 1,574.92km2 prospective for uranium and REE mineralisation within the Northern Territory, Australia.
· In November 2021, the Company saw the grant of the final Western Australia licence held by FDR Australia, Braeside West, and in February 2022, the grant of all three Selta Project licences in the Northern Territory and the launch of an in-depth review of all geological, geophysical, and geochemical information available over the project. The results of this review announced in March 2022, confirmed multiple high-priority targets for uranium and REE mineralisation.
· In February 2022, the Company also announced the results of a comprehensive desktop study over the Paterson region projects, which included several developments from the magnetic bullseye targets located within the Wallal Project.
Gawler Project
· In October 2021, Power Metal’s 100% owned Australian subsidiary Power Metal Resources Australia Pty Limited, lodged applications covering 1,994Km2 within the Gawler Craton of South Australia, which are specifically targeting gold-copper mineralisation.
North American Project Interests
Silver Peak Project
· The assay results following a summer 2021 diamond drilling programme at the Silver Peak Project located in British Columbia, Canada, were released in November 2021. The results highlighted bonanza grade silver (>1,000g/t) in 10 of the 19 holes drilled, including a top intercept of 0.76m of 8,692.2g/t Ag (279.5 oz/t).
· Furthermore, overlimit assays were completed which returned high-grade copper, antimony, and lead, with the highlight result increasing to 0.76m of 10,131g/t Ag-Equivalent.
Saskatchewan Uranium Properties
· Building on the initial staking of exploration properties completed in September 2021, in October the Company announced an expansion of its wholly owned uranium interests to 7 properties covering a combined 241km2, surrounding the prolific Athabasca Basin in Saskatchewan, Canada. The package was further increased to 411.96km2 as announced in November 2021.
· Also announced in November 2021 was the launch of an inaugural exploration sampling programme covering 3 of the 7 properties, the results from which were announced in December 2021, and confirmed high-grade uranium in rock samples with highlight results up to 3.86% U 3 0 8 (38,600ppm).
· In January 2022, the Company launched an extensive data compilation over all 7 properties to provide data rooms for internal use and factsheets to assist third parties expressing an interest in the properties.
· In February 2022, the Company announced the results from the Reitenbach Property review, confirming extensive uranium prospectivity and that various commercial options for the Property were under review. A National Instrument 43-101 technical report for Reitenbach to assist the commercialisation process was commissioned in March 2022, the results of which will be announced in due course.
Authier North Project
· A programme of rock and soil sampling launched in September 2021 demonstrated the highest lithium results located in the eastern part of the Authier North Project, within the northeast and south-eastern grids. In the period, the Company reviewed next-stage exploration plans which may include additional infill soil sampling between the two grids, as well as possible ground-based geophysical surveys over the entire project.
Golden Metal Resources
· Golden Metal Resources continued to work on preparations for its planned IPO in the period which would see the listing of a Nevada-focused exploration business in London.
· In December 2021, the Company announced a successful pre-IPO financing for Golden Metal Resources at a pre-money valuation of £3.25million, raising £750,000 (including £75,000 subscribed by Power Metal and £50,000 by Paul Johnson, Power Metal CEO).
· The Company announced In October 2021 that new copper anomalies had been identified from exploration work over the Garfield Project leading to additional staking of claims to cover the newly defined anomalies.
· In November 2021, the Company completed the 100% acquisition of the Pilot Mountain Project into Golden Metal Resources plc from AIM-listed Thor Mining PLC (LON:THR).
· A detailed exploration update covering all four properties (Pilot Mountain, Golconda, Garfield, and Stonewall) was announced in November 2021, and a further commercial & project update was released in February 2022.
Alamo Project
· In November 2021 the Company announce the commencement of the test pitting programme at the Alamo Project in Arizona USA the results of which remained outstanding at the half year end and as at the date of this report further technical information has been received which is currently under review (see below).
OPERATIONAL HIGHLIGHTS AFTER THE HALF YEAR END (APRIL 2022 TO DATE)
African Project Interests
Tati Greenstone Project
· In April 2022, the Company announced drill results from the RC drill programme which commenced in October 2021. The programme successfully identified the targeted geological formations and gold in assays were returned from 7 holes which were targeted within a previously identified Au-in-soil anomaly. The highlight results included 5.17g/t Au over a 3m intersection from only 9m downhole.
· Following these results and a further geological review, the Company secured an additional prospecting license over ground covering the historical Cherished Hope Gold Mine, which added 16.14km2, further increasing the Tati Project footprint to 140km2.
Molopo Farms Complex Project
· In May 2022, the Company announced it had signed an initial agreement with the shareholders of Kalahari Key Mineral Exploration Pty Ltd (‘KKME”) to acquire an additional 58.7% of the issued share capital of KKME. The goal is to then restructure the ownership of the Molopo Farms Complex project so that KKME’s 100% interest is restored and to become the operator of the Molopo Farms Complex Project.
· Upon completion of the acquisition and further restructuring, the Company will hold 87.71% of the issued share capital of Kalahari Key Mineral Exploration Pty Ltd.
Kanye Resources Joint Venture
· In April 2022, the Company announced the commencement of diamond drilling at the Ditau Camp Project. The programme includes up to 2,400m of drilling within 6 holes targeting 3 high-priority exploration areas.
· In May 2022, the Company also announced the expansion of the exploration programme to include 16.1 line-km of Audio-Magnetotelluric (“AMT”) geophysics surveys over various target areas.
· Drill programme updates have been provided post half year end including second hole DITDD004 which demonstrated highly elevated magnetic susceptibility readings between 293m and 321m (the “Zone of Interest”). The core from the Zone of Interest has been sent for rush assay.
Haneti Project
· In May 2022, the Company announced the drill results from the diamond drill programme where all drillholes intersected significant sequences of altered ultramafic and mafic rocks, representing the first ever fresh rock drill core samples extracted from the Haneti Project.
· Integration of thin section petrographic analyses with bulk rock geochemical results across multiple intersected lithological units suggest that the PGE potential at Haneti is limited to serpentinite units, and that nickel and copper mineralisation should preferentially be targeted within the intrusive gabbro units.
· Whilst the drilling results showed anomalous results for nickel, copper, gold, and PGE’s that are subject to further interpretation, economically significant intersections of these metals were not encountered in the drilling.
· Simultaneously, rock sampling results from the Babayu Lithium Prospect highlight significant lithium and tantalum potential with lithium-caesium-tantalum (“LCT”) pegmatite mineralisation outlined over a 600m strike-length. The chip sample results (up to >10,000ppm Li and 2,680ppm tantalum) and strike length combined with the perceived shallow dip of the main pegmatite body highlight the potential for a significant near-surface mineralised body that warrants further assessment and evaluation.
· Licence applications have been made in respect of the areas considered prospective for lithium and the JV is currently implementing a lithium consolidation strategy including existing lithium applications and reviewing potential partnerships with local licence holders.
Togo Uranium
· In June 2022 Power Metal announced an agreement to evaluate, acquire and explore new uranium opportunities in Togo, West Africa.
Australian Project Interests
New Ballarat Gold Corporation (Victoria Goldfields JV)
· In the period the JV’s combined footprint within the Victoria Goldfields increased to 1,832km2 from 14 granted exploration licences, including key licence grants in May 2022 – notably EL007330 located northeast of Ballarat, Australia. Significantly, this newly granted licence covers the historical Ajax gold mine which historically produced 312,789oz Au at an average grade of 14.8g/t Au in the 1920s.
· In the period, the JV has undertook 860m of diamond drilling programme targeting the O’Loughlin’s and Mt Bute Prospects, located 30km and 20km from the town of Ballarat, Australia, respectively.
· Initial assay results from the O’Loughlins Prospect were released on 12 April 2022, demonstrating high-grade gold from O’Loughlins and further results released in June 2022, noted the discovery of intrusion related gold (IRG) mineralisation confirmed at Mt Bute Prospect.
First Development Resources
· In April 2022, the CEO of FDR UK undertook a site visit to the FDR Australia projects and conducted meetings with key relationship partners in Western Australia and the Northern Territory.
· A Selta project focused update was released in May 2022, confirming enhanced REE prospectivity and an additional REE exploration target area.
· In June 2022, FDR UK completed a £1,125,000 pre-IPO fundraise with a £3,000,000 pre-money valuation (Including £75,000 subscription from Power Metal and £50,000 from Power Metal CEO Paul Johnson).
· Following a lithium specific review completed in June 2022, FDR UK mobilised a field investigation team to conduct mapping and surface sampling at identified lithium prospective targets.
North American Project Interests
Saskatchewan Uranium Properties
· The Company has completed an in-depth historical data compilation across its entire Uranium Portfolio surrounding the prolific Athabasca Basin and now possesses a robust fully digitised database covering all historical work programmes completed across each asset.
Golden Metal Resources
· Golden Metal Resources continued to progress preparations for its planned London listing, assisted by advisors across all related disciplines.
Alamo Project
· In June 2022 Power Metal received a further technical report in respect of the Alamo Project work programme which is under review at present.
FINANCIAL HIGHLIGHTS FOR THE HALF YEAR ENDED 31 MARCH 2022
· Loss for the period, attributable to owners of the parent of £1.69 million (2021: £0.59 million), resulting in loss per share of 0.12 pence (2021: 0.07 pence);
· Financing undertaken in November 2021 raising £1.05 million and warrant and option exercises during the period raised £0.59 million for the Company;
· Total assets of £9.24 million at the period end (30 September 2021: £6.28 million); and
· Net assets of £8.01 million at the period end (30 September 2021: £5.97 million).
Power Metal #POW – Uranium Business Update and Togo Agreement
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.
Power Metal #POW – Exercise of Warrants
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Power Metal Resources plc (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an exercise of warrants.
Warrant Exercise
The Company has received a notice to exercise warrants over 657,895 new ordinary shares of 0.1 pence each in the Company (“Warrant Shares”) at an exercise price of 0.75p per Warrant Share and raising an additional £4,934 for the Company.
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 657,895 Warrant Shares to be admitted to trading on AIM which is expected to occur on or around 27 June 2022 (“Admission”). The Warrant 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 1,477,036,161 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.
#POW Power Metal Resources – Transaction Update – Pilot Mountain Project
Power Metal Resources PLC (LON:POW) the London AIM listed company which finances and manages global resource exploration projects, announces a transaction update following the exercise of the option (the “Option”) on the Pilot Mountain Project (“Pilot Mountain” or the “Project”) located in Nevada, United States of America (“USA”) (the “Transaction”).
The Company’s announcement in respect of the Transaction of 1 November 2021 may be viewed through the following link: https://www.londonstockexchange.com/news-article/POW/acquisition-of-pilot-mountain-project/15193667
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“I am pleased to confirm completion of the Pilot Mountain transaction and the further signing of a Variation Agreement enabling Power Metal to secure early clearance of the tail benefit.
Our ongoing technical work in respect of the Pilot Mountain project has increasingly demonstrated significant upside potential within the existing 2018 Mineral Resource Estimate and we considered there was a reasonable likelihood that the tail benefit would become payable within the 2 year payment period.
The early clearance of the tail benefit also frees Power Metal from any future contractual financial encumbrance in respect of the Project.
The recent classification of tungsten as a critical mineral from the United States Geological Survey, and the lack of primary domestic tungsten production makes the Project in our view highly strategic, both now, and potentially much more so in the future with successful further exploration work which will be undertaken by Golden Metal Resources.”
HIGHLIGHTS
Transaction Completion
Power Metal subsidiary Golden Metal Resources Limited (“Golden Metal UK”) has established a new wholly owned subsidiary Golden Metal Resources Australia Pty Limited (“Golden Metal Australia”) which has now completed the 100% acquisition of the Pilot Mountain project.
Variation Agreement
The terms of the Transaction are outlined below, and included the Tail Benefit of deferred consideration of US$500,000 (c£368,000) payable to Thor Mining plc (the “Vendor” or “Thor Mining”) in the event that Golden Metal UK publishes a JORC or 43-101 compliant resource at Pilot Mountain which increases against current declared levels by 25% across total indicated and inferred categories within two years after the Transaction agreement date.
Power Metal has now agreed terms to secure the early clearance of this Tail Benefit through the payment of £50,000 cash and issue to Thor Mining of 4 million Power Metal new ordinary shares of 0.1p each in the Company at an issue price of 2.5p per share (£100,000) (“Variation Shares”).
Power Metal and Thor Mining plc have signed a Variation Agreement to effect the above. Following completion of the payments due under the Variation Agreement, all amounts due or potentially due under the Transaction have now been settled in full and no further consideration is due.
Listing of Golden Metal
Golden Metal UK is making good progress with its proposed listing process and a further update will be provided in the near future.
TRANSACTION INFORMATION
Power Metal subsidiary Golden Metal Resources Limited (“Golden Metal UK”) has established a new wholly owned subsidiary Golden Metal Resources Pty Limited (“Golden Metal Australia”) which has now completed the 100% acquisition of the Pilot Mountain Project.
Power Metal has paid US$115,000 in cash consideration to Thor Mining and US$1,650,000 of consideration through the issue to Thor Mining of 48,118,920 new Ordinary Shares at an issue price of 2.5 pence per share (“Initial Consideration Shares”).
Thor Mining will hold the Initial Consideration Shares in full for a minimum of 6 months after the Option Exercise date and thereafter the Initial Consideration Shares will become freely tradable in 25% instalments (25% tradable 6 months after Option Exercise date, 50% – 9 months after Option Exercise date, 75% – 12 months after Option Exercise date and 100% – 15 months after Option Exercise date.) This trading restriction period may be varied with the written agreement of both parties.
In addition, Power Metal have issued to Thor Mining 12.5 million warrants to subscribe for Ordinary Shares with an exercise price of 4p per Ordinary Share and life to expiry of 3 years from the Option Exercise date (“Initial Consideration Warrants”). Should the volume weighted average price (“VWAP”) of Power Metal shares meet or exceed 10 (ten) pence for 5 consecutive trading days Power Metal may serve notice on Thor Mining providing 14 calendar days to exercise and pay for the Initial Consideration Warrants or the Initial Consideration Warrants will be cancelled.
Should Thor Mining exercise the Initial Consideration Warrants above within 12 months from the Option Exercise date, Thor Mining will receive one for one replacement warrants to subscribe for Ordinary Shares at a fixed price of 8p per Ordinary Share, and life to expiry ending 3 years from the date of Option Exercise (“Super Warrants”). Should the Power Metal volume weighted average share price meet or exceed 20p for five consecutive trading days Power Metal may at any time issue Thor Mining with a written notice providing 14 days to exercise and pay for the Super Warrants or the Super Warrant will be cancelled.
All Option Exercise Consideration items outlined above have now been paid or issued in full.
Tail Benefit
Power Metal was to issue Thor Mining with a further US$500,000 of consideration in new Ordinary Shares if Golden Metal UK publishes a JORC or 43-101 compliant resource at Pilot Mountain which increases against current declared levels by 25% across total indicated and inferred categories within two years after the Agreement date. The number of Ordinary Shares to be issued was to be calculated based on the volume weighted average Power Metal share price in the ten trading days immediately preceding the announcement by Golden Metal of the JORC or 43-101 compliant increase.
With the Variation Agreement announced today, the above Tail Benefit is now eliminated.
Additional Terms
Thor Mining and their professional corporate, licensing and geological teams will continue to work with Power Metal and Golden Metal to assist with Pilot Mountain ownership transfer and to manage local corporate & exploration/development operations in the 12 months following the Option Exercise date. Power Metal and Golden Metal will pay for any assistance provided post Transaction on reasonable commercial terms to be agreed.
PILOT MOUNTAIN OWNERSHIP STRUCTURE
Wholly owned1 Power Metal subsidiary Golden Metal Resources UK through its wholly owned subsidiary Golden Metal Resources Australia Pty Ltd., now holds 100% of Black Fire Industrial Minerals Pty Ltd., (Australian private company) which owns 100% of Industrial Minerals (USA) Pty Ltd., (Australian private company) which owns 100% of: BFM Resources Inc., and Pilot Metals Inc., (USA private companies) which own tenements covering the entire Pilot Mountain Project and the 2018 Mineral Resource Estimate.2
Further disclosures
As at the date of option announcement on 31.08.21 the following disclosures were made:
As at 30 June 2020 BFM Resources Inc had Gross Assets of AUD$21,449 (circa £11,317) and incurred no profit or loss (AUD$Nil) for the year ended 30 June 2020.
As at 30 June 2020 Pilot Metals Inc had Gross Assets of US$3,055,411 (circa £2,226,602) and a loss of US$106,164 (circa £77,366) for the year ended 30 June 2020.
As at 30 June 2020 Black Fire Industrial Minerals Pty Ltd on a consolidated basis had Gross Assets of AUD$5,181,951 (circa £2,738,397) and a loss of AUD$154,690 (circa £81,746) for the year ended 30 June 2020.
It is further noted that since the announcement of the Pilot Mountain option, Thor Mining plc transferred the Pilot Mountain project and all holding companies to “Held for Sale Assets” with a written down value of £1,050,000 as at 30 June 2021 their reported financial year end.
ADMISSION AND VOTING RIGHTS
Application will be made for the 4,000,000 Tail Benefit Shares to be admitted to trading on AIM which is expected to occur on or around 31 January 2022 (“Admission”). The Tail Benefit 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 1,448,339,986 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.
Reference Notes:
1 As announced on 9.12.21 Golden Metal Resources Limited has undertaken a pre-IPO financing raising £750,000. Following the issue of shares in respect of this financing Power Metal will hold 83.13% of Golden Metal Resources 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 |
Power Metal Resources #POW – New Ballarat – Licence Grant and Drilling Commences
Power Metal Resources plc (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update from its joint venture subsidiary New Ballarat Gold Corporation PLC (“NBGC”) which is undertaking gold exploration at its granted exploration licences in the Victoria Goldfields in Australia.
Highlights
- NBGC’s first diamond drill programme begins at O’Loughlin’s prospect south of Buninyong
- Grant of new 489 km2 exploration licence EL007282 (Blue Sky) in Victoria, Australia, with 9 licences now granted covering 1,501 km2
Further information in respect of the granted licences and licence applications is provided below and for additional information regarding the above drill programme, now commenced, please review the Company’s announcement dated 7 December 2021 which may be viewed through the following link:
Paul Johnson, Chief Executive Officer of Power metal Resources commented: “Today marks an important point in the life of New Ballarat Gold Corporation as inaugural gold exploration drilling commences. We look forward to the results feeding out from the project.
We also have the welcome news that a further large exploration licence, EL007282 (Blue Sky), has been granted, taking the total portfolio of granted licences to over 1,500km2 for the first time. To hold such a large land granted footprint in the Victoria Goldfields is a tremendous positive.”
Granted Licences
The granted licences cover high priority areas covering 1,501 km2 where NBGC has early drill targets and in which exploration has already started.
| Licence Number | Project Name | Area (km2) |
| EL007271
|
Buninyong
(renamed) |
133 |
| EL007281
|
Blue Chip | 74 |
| EL007285
|
Blue Ribbon | 8 |
| EL007327 | Dereel | 60 |
| EL007385 | Sardinia | 4 |
| EL007329 | Kilmore | 484 |
| EL007301 | Pitfield/Mt Bute | 85 |
| EL007328 | Blue Yonder | 164 |
| EL007282 | Blue Sky
(Announced today) |
489 |
| Total | c 1,501 |
Licence Applications
RRAL has applications in process for seven other new gold exploration licence areas covering approximately 805 km2 in the Victoria Goldfields of Australia including:
| Licence Application Number | Project Name | Area (km2) |
| EL007294 | Red Queen | 130 |
| EL007330 | Daylesford
(renamed) |
202 |
| EL007460 | Kilmore West | 325 |
| State land within EL007271
[EL007505 EL007506 EL007507]
|
|
[9 9 8] |
| EL007540*
(3 competing applications)
|
Outer Ballarat | 148 |
| Total | c 805 |
* Balmaine Gold Pty Ltd, Mercator Gold Australia Pty Ltd, and Loddon Gold Pty Ltd have put in competing applications the same day as RRAL for the ground covered by EL007540. The application considered to have greatest merit will eventually be given priority.
New Ballarat Gold Corporation PLC
NBGC is a privately owned joint venture company owned 50.1% by Red Rock Resources plc (LON:RRR) and 49.9% by Power Metal.
NBGC holds a 100% interest in local operating subsidiary Red Rock Australasia Pty Limited a private Australian company which holds a 100% interest in all operating granted licences and licence applications (“RRAL”).
NBGC holds a strong land position of 2,306km2 (1,501km2 granted licences) in the rich gold fields of Victoria, Australia, principally around the mining centre of Ballarat, as the result of a focused exploration strategy targeting high grade quartz hosted gold veins systems in a region where the exploration models and targets are well understood.
NBGC has carefully assembled its portfolio of properties comprising a broad range of robust exploration targets, all of which remain largely undeveloped by modern explorers.
With the first tenements granted only in 2021 NBGC is already at an advanced stage of exploration with three promising gold prospects one of which is the subject of the diamond drilling now underway.
Still able to actively operate in the current global pandemic, NBGC has exploration geologists and field crews active in the field. This is coupled with a technical team holding an in-depth knowledge of Victorian geology including extensive underground experience gained from working in currently operating mines in the area.
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 – 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.
Power Metal Exploration Programmes Underway/Results Awaited
Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:
| Project | Location | POW % | Work Completed or Underway | Results Awaited |
| Alamo Gold Project | USA | Earn-in to 75% | Excavation of multiple test pits and mapping & sampling. | Field results from on-site work programme. |
| Athabasca Uranium | Canada | 100% | Phase I field exploration completed | Laboratory assay results of samples collected for uranium and REEs |
| Authier North Lithium | Canada | Earn-in to 100% | Soil & rock sampling completed | Laboratory assay results of samples collected |
| Ditau Project | Botswana | 50% | Preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare-earth elements and base metals
|
Field programme findings and defined drill targets for near term drilling. |
| Kalahari Copper Belt | Botswana | 50% | Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas | Field programme findings and defined drill targets for near term drilling |
| Molopo Farms | Botswana | 53% | Kavango Option to acquire an interest in local project holding company. Option fee payable through defined work programme | Results from various work activities underway as part of the Kavango Option |
| Tati Gold/Nickel | Botswana | 100% | Reverse circulation drill programme completed | Laboratory assay results awaited |
| Victoria Goldfields | Australia | 49.9% | Ongoing exploration across 1,501km2 of granted exploration licences
|
Results from field programme including drill programme underway |
| Wallal Gold/Copper Project | Australia | 83.33%1 | Passive seismic and 2D seismic processing work programme completed | Results awaited |
1 assuming all licences held by URE Metals Pty Limited are granted as outlined in the Company’s announcement of 19.11.21 resulting in the issue of First Development Resources Limited shares to vendors.