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Power Metal Resources #POW – Quarterly Business Update
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the quarterly business update for shareholders.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“First Class Metals, into which we sold our Schreiber-Hemlo interests is nearing its planned listing; we recently conditionally disposed of our stake in the Botswana Kanye JV to our partner Kavango Resources; and we have Golden Metal Resources (Nevada, USA focused) nearing completion of its IPO preparations, with First Development Resources’ planned listing process (Australia focused) well underway. We expect more crystallisation events to occur from our still extensive portfolio.
Crystallisation of value into strategic investments bolsters our balance sheet considerably and offers the potential for considerable capital gains, alongside providing a major pool of available working capital to the Company. However, what enthuses us even more is the future direction of the Company and the exploration potential offered from within our retained portfolio.
We would reinforce our commitment to growing a uranium focus in the Company, with the energy metal slated for a continuing resurgence as the world continues in its journey towards significantly increased reliance on nuclear power generation. Going forward, we will also focus our energy and resources on the more rapid advancement of certain retained exploration projects, including notably our two remaining Botswana interests in the Molopo Farms Complex and Tati Greenstone Belt projects.”
GUIDANCE FOR READERS
The tables below include the latest position of each project and our operational plans over the course of the next three months.
Projects are grouped into the following categories to provide additional clarity to investors on the project status and near term plans:
– Priority exploration projects
– Project disposals or IPO processes underway
– Projects with next steps to be determined pending receipt of further information
Below the project tables, additional information is provided covering new opportunities, business management, finance and compliance.
Readers are also encouraged to review Power Metal’s corporate website and presentation which are regularly updated and are available through the following links:
Website: www.powermetalresources.com
Corporate Presentation: https://www.powermetalresources.com/presentation/
PRIORITY EXPLORATION PROJECTS
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Project |
Latest Position & Forward Plans |
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Athabasca Uranium Saskatchewan, Canada (Uranium) POW 100% |
Power Metal currently holds 7 properties with 3 newly acquired properties to be transferred to it, as announced 26 July 2022 and which together cover 721km2surrounding the Athabasca Basin.
Detailed data compilation has been completed and external datarooms opened for third parties in respect of 7 properties. We have completed hyperspectral data analysis over 4 properties with the findings leading to the planned launch of ground exploration at those properties shortly.
In addition to exploration of retained uranium projects, the Company is working on corporate options in relation to certain of its Athabasca uranium interests.
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Authier North Quebec, Canada (Lithium) POW earn-in to 100% |
The Company continues to monitor progress being made by Sayona Mining (ASX: SYA) who control the neighbouring Authier Lithium Project.
On 12 July 2022 Power Metal announced the decision to proceed into year 2 of the earn-in to a 100% interest in Authier North.
Ground exploration plans are being finalised with work expected to commence this quarter.
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Molopo Farms Complex Project Botswana (Nickel – Copper – Platinum Group Element) POW: Effective Economic Interest is currently 52.6% increasing to 87.71% subject to completion of the KKME shares acquisition & restructuring announced 18.5.22.
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Power Metal secured a conditional agreement to acquire an additional 58.7% of shares in project partner Kalahari Key Mineral Exploration Pty Limited (“KKME”) as announced on 18 July 2022: https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701 This acquisition, conditional on regulatory approval, will see Power Metal holding 87.71% of KKME which will hold 100% of the Molopo Farms Complex Project (“Molopo Farms”). The next step is diamond drilling to follow up on the discovery of nickel sulphides in the first drill campaign and seeking an economic and large-scale discovery. Planning is underway now for this next drill programme which, subject to completion of the agreement to acquire an additional 58.7% of shares in KKME, we expect to commence in the autumn. Simultaneously, we have prepared and opened a Molopo Farms dataroom providing all project information for interested third parties to review. All such engagements will be under non-disclosure arrangements at this time. |
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Tati Project Botswana (Gold – Nickel) POW: 100% |
The Company announced the results from a maiden drill programme at the Tati Project on 4 April 2022 and this may be viewed through the following link:
Drilling confirmed 3 metres of 5.17g/t gold from 9 metres downhole, representing shallow gold mineralisation. Analysis led to additional gold prospective ground being covered by a new prospecting licence (“PL”) application, which was granted in April 2022 as announced to the market:
Recently the Company’s technical team visited the new PL to conduct site inspections and mapping, confirming extensive historical gold workings at the Cherished Hope gold mine as well as large fines dumps which may be capable of near-term revenue generation through toll processing of gold:
As a result of the findings from the site visit undertaken, we have expedited plans including further volumentric analysis and gold sampling of fines dumps and a reverse circulation (“RC”) drill programme is expected to commence in September/October of this year.
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PROJECT DISPOSALS OR IPO PROCESSES UNDERWAY
Note: other project packages within the Power Metal portfolio are also in earlier stages of spin-out preparations in addition to those listed below.
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Project |
Latest Position |
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Kanye Resources Conditional Disposal to Kavango Resources |
On 8 July 2022 Power Metal announced the conditional disposal of its Kanye Resources interest to its joint-venture partner Kavango Resources plc (LON:KAV)(“Kavango”). The disposal is subject to the publication of a prospectus by Kavango including provision for the transaction. Full terms and disposal consideration payable to Power Metal may be viewed in the announcement linked below: |
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First Class Metals PLC (FCM) Schreiber-Hemlo, Ontario, Canada (Gold – Base Metals) POW c.36%
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Power Metal currently has an interest of 36.3% in FCM following the FCM pre-IPO financing which raised £486,000 in 2021. FCM is seeking a listing on the London capital markets which is expected to occur shortly. First Class Metals has 100% ownership of 7 claim blocks covering over 180km² in the Hemlo – Schreiber greenstone belt of Ontario, Canada. The North Hemlo flagship property covers over 90km2 and sits just north of Barrick Gold Corp’s Hemlo gold mine. The North Hemlo property has abundant showings of gold/copper/zinc/nickel. In the east of the North Hemlo property sits the Pickle Lake joint venture with Palladium One (TSX:PDM) which is the subject of a current drill programme focussing on nickel/copper targets. |
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Golden Metal Resources PLC (GMR) Nevada, USA Gold – Base Metals POW 83.13%
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Power Metal provided a Golden Metal Resources (“Golden Metal”) company update on 19 July 2022 which may be viewed below: https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-company-update/15547371 Following the pre-IPO financing which raised £750,000 in late 2021 preparation for the planned listing of Golden Metal is near to completion and this will lead into the IPO financing, and subject to regulatory approvals, a planned listing on the London capital markets expected to occur this quarter. Golden Metal is active from an exploration perspective with an induced polarisation (“IP”) survey underway over the Pilot Mountain project and a high-resolution soil geochemical survey active across the Garfield project. |
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First Development Resources Ltd (FDR) Western Australia (Gold – Copper – Rare Earth Elements – Uranium – Lithium) POW: 62.12%
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FDR has undertaken multiple exploration and corporate work streams in recent months. A detailed company update will be released to the market shortly providing an update which will cover: – Final preparations for the Wallal project diamond drill programme – Exploration findings from the Braeside West, Ripon Hills and Selta projects – Update with regard to the planned listing process now fully underway following the completion of a £1.125m pre-IPO financing as announced in June 2022.
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New Ballarat Gold Corporation PLC (NBCG) Victoria, Australia (Gold) POW: 49.9% 50.1% JV Partner Red Rock Resources PLC LON:RRR)
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Through its Australian operating subsidiary, Red Rock Australasia Pty Ltd, NBGC has a substantial licence footprint within the Victoria Goldfields, Australia. This comprises 14 granted exploration licences covering 1,832km2 and 5 licence applications covering 493km2. A planned listing of NBGC has taken longer than anticipated but remains the focus of the company with a potential planned listing in the London or Australian capital markets later this year. Much work has been undertaken recently to advance the licences held in NBGC including continuing exploration work by our in-country operational team. Also through the advancement of licence applications into granted status, which has now been achieved for 79% of the application footprint. Recent licence grants include EL007330 located northeast of Ballarat and this newly granted licence covers the Ajax gold mine which historically produced 312,789oz gold at an average grade of 14.8g/t Au in the 1920s (“Ajax”). Further information in our announcement of 24 May 2022: The addition of the Ajax gold mine above was further supplemented by a transaction to acquire EL5535 which covers the historical Berringa gold mine just west of Ballaratwhich has historical production of 293,250 ounces of gold from 1898-1952, at an average grade of 8.3g/t (“Berringa”). Further information in our announcement of 6 July 2022: The mined sections of the Ajax and Berringa trends are thought by RRAL to be among the top half dozen historic underground gold mines of Victoria and contain significant exploration targets. Both mine areas are within 30km of existing and not fully utilised treatment plants. Work is currently being undertaken to better understand historical mining activities, residual gold resource potential and drill targets at both Ajax and Berringa, with a view to diamond drilling later this year. This work is being undertaken alongside various work streams in respect of the planned listing. |
PROJECTS WITH NEXT STEPS TO BE DETERMINED
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Project |
Latest Position & Key Forward Events |
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Alamo Gold Project Arizona, USA (Gold) POW: Earn-in to 75% |
Various technical reports have now been received and reviewed following work undertaken at the Alamo gold project in Arizona.
The findings are inconclusive to date and require additional work to be undertaken to further the technical understanding of the project’s potential.
We are working with our partners in Arizona to review the technical work required and the costs attaching. We are also looking at the earn-in which may need to be restructured given the findings thus far.
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Gawler Project South Australia (Gold, Copper) POW: 100% |
The Gawler Project comprises two licence applications (submitted October 2021 and covering 1,994km2) details of which may be viewed through the following link: https://www.londonstockexchange.com/news-article/POW/new-australia-copper-gold-opportunity/15189456
Recently Power Metal Resources Australia Pty Limited, Power Metal’s wholly owned operating company, was advised that the Department of Energy and Mining (“DEM”) proposed granting of one licence application ELA2021/00163 (999km2) for a period of 6 years. The initial expenditure commitment for the licence is AUD$100,000 in total over 2 years, and Power Metal has paid AUD$23,055.10 in respect of first year rent and administration fees to the DEM. The Company now awaits final regulatory sign-off and release of granted licence documentation.
Internal technical review by the Power Metal team has been undertaken and an initial exploration programme is being finalised in preparation for the launch of ground exploration following receipt of the granted licence documentation.
Power Metal awaits progress with regard to the granting of ELA2021/00162 (995km2) and will similarly launch planned ground exploration subject to the granting of the licence.
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Haneti Project Tanzania (Polymetallic) POW: 35% (65% JV Partner Katoro Gold plc LON:KAT) |
Drill results were announced for the Haneti Project in May 2022. Drilling identified the targeted nickel, but not in economically significant intersections. The technical results from the programme are expected to lead to further target development at Haneti for ongoing exploration.
In addition data from the programme is now being made available to third parties previously interested in the Haneti project, to augment information previously supplied up to Q1 2020.
Power Metal is keen to progress the Haneti project through further targeted exploration and/or corporate activity.
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Silver Peak Project British Columbia, Canada (Silver) POW: 30% |
Liaison with our Canadian partner to finalise commercial initiatives for the project continue. An important next step is a planned site visit which is scheduled for early August 2022, which is expected to assist expediting matters. |
NEW OPPORTUNITIES
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Project |
Latest Position |
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Power Metal Resources plc |
The near-term focus will remain on the exploration of existing interests and the crystallisation of value through the potential listing of spin-out vehicles and project value generative disposals. The primary acquisition focus for the foreseeable future is uranium projects, however the Company does not rule out other acquisitions of exceptional opportunities. |
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Power Capital Investments Limited Global Resource Project Incubator (Multi-Commodity) POW: 100%
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Power Capital Investments (“Power Capital”) continues to work on a number of initiatives targeting individual or smaller corporate owned opportunities. This is occurring against a backdrop of intensive activity across the Power Metal business and will for now remain a modest source of activity as we seek to advance our major business interests. |
MANAGEMENT – FINANCIAL – COMPLIANCE
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Project |
Latest Position |
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Board
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The Board currently comprises: Scott Richardson Brown – Interim Non-executive Chairman Paul Johnson – Chief Executive Officer Ed Shaw – Non-executive Director Power Metal has been engaging with a number of potential board candidates for Power Metal and associated companies. We have successfully secured full boards for Golden Metal and First Development Resources in advance of their planned listings. For Power Metal we are undertaking due diligence on new candidates and hope to be in a position to announce new appointments in the near term. |
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Management and Team
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Power Metal has built a strong operational team which along with the board now comprises ten team members based out of our UK office. We work extensively overseas and have developed equally strong operational partnerships in countries around the world, forming an efficient and cost effective hub-and-spoke operational model. Power Metal is actively seeking to bring new team members in to support the growth in business and we continue to invite talented individuals from all backgrounds who feel they can contribute to our work to reach out and contact us through the following link: |
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Financial Position
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Working Capital Working capital comprises cash and listed investments (“Working Capital”). As at 26/07/22 Working Capital amounted to £1.88m. This is available for payment of corporate costs and exploration expenditure across business operations. Pre-IPO Vehicles Power Metal has holdings in three current vehicles undertaking a planned IPO which, valued at the historical pre-IPO valuation level, amount to a total value of £6.92m as per the table below:
In addition, Power Metal is seeking with JV partners (Red Rock Resources PLC) to undertake a listing of NBGC, the pre-IPO valuation of which is not confirmed at the current time. The listing of further project packages may be undertaken which will be incorporated into the above list in due course. Project Investments & Intercompany Loans As at 30/06/2022 Power Metal’s remaining assets comprising project investments and intercompany loans, amounting to £5.08m. Future Financing Sources The Company has multiple sources of additional financing, not all of which may be necessary or occur in the foreseeable future: – As an AIM listed vehicle traditional equity financing can be undertaken to raise additional sums where considered necessary.
– Through the exercise of financing and transactional warrants or the exercise of director, team member or adviser options. A full breakdown of all warrants and options outstanding is available on the Company’s website through the following link:
https://www.powermetalresources.com/warrants-options-outstanding/
– In addition to the above, the Company will benefit from the planned listings of the pre-IPO vehicles as outlined above which will, if successful and in line with expected valuations on listing, add considerably to overall Power Metal asset value.
– It is anticipated that further value generative events may occur including additional spin-outs into new listed vehicles and outright disposal of certain business interests. |
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Audit and Compliance
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Power Metal with the support of One Advisory, completed its interim results for the half year ended 31 March 2022, which in line with best practice were reviewed for comment by the Company’s auditors PKF. The interim results were published on 27 June 2022. The Company’s year end is 30 September 2022 and it is expected that the audited financial accounts for the full year will be published in February 2023. Power Metal is now well advanced with preparation of a new environmental, social and governance (“ESG”) initiative which will include: – Appointment of an ESG Officer for Power Metal and all associated companies. – Design, implementation of new and wide ranging ESG policies across the Company and embedded at local project or investment level for all Company activities. Training of all staff members to develop Company-wide core ESG understanding, with in-depth training where required to maintain optimal ESG capability at all levels. A separate ESG dedicated announcement will be published by the Company in due course. |
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 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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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 |
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Athabasca Uranium |
Canada |
100% |
Hyperspectral data analysis conducted across all 7 properties. Updating to 7 data rooms for third party review. |
Finalise review of data from 3 properties. Prepare for summer exploration programme across 4 properties. |
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Authier North Lithium |
Canada |
Earn-in to 100% |
Property Evaluation Report completed. |
Update covering exploration plans for target areas identified during the Evaluation. |
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Molopo Farms |
Botswana |
53%# |
Comprehensive data review complete and establishment of data room for third party review. |
Finalise next exploration steps and action plan. |
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Tati Project |
Botswana |
100% |
Site visit with mapping of gold workings and mine dumps. |
Exploration planning underway including further mapping, sampling and launch of an RC drill programme. |
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Victoria Goldfields |
Australia |
49.9% |
Diamond drill programme completed. Review of Ajax & Berringa mine remaining resource potential.
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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 Resources #POW – Tati Project Prospecting Licence 049/2022 Successfully Granted Covering Major Gold Anomalies
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolioannounces a further update from the Company’s 100% owned Tati Project (“Tati” or the “Project”) located within the Tati Greenstone Belt near Francistown, Botswana, following the release of the 2021 drilling results announced on 4 April 2022:
Highlights:
– Prospecting Licence (“PL”) PL049/2022, covering the historical Cherished Hope Gold Mine as well as a large gold-in-soil anomaly coincident with a prominent northeast-southwest oriented regional structure has been granted.
– The 16.14 km2 licence is held in the name of Tati Greenstone Resources Pty Ltd, which is a 100% owned, Botswana-based, subsidiary of Power Metal.
– The Company’s land position within the exciting Tati Greenstone Belt (“TGB”) has now been enhanced materially, and highly prospective grounds with strong historical gold results are 100% owned by Power Metal.
– The Company is undergoing an in-depth review of all historical results covering the newly granted PL, and will update the market in due course with next exploration steps.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“The grant of this additional prospecting licence is a significant achievement for the Tati Project, covering a number of major gold anomalies identified by our team during a in-depth desktop analysis completed following the receipt of our 2021 drilling programme assay results.
With this new PL now granted, our upsized exploration footprint covers multiple targets across a highly prospective area for gold mineralisation, and we are accelerating exploration efforts to test the new Au-in-soil anomalies secured.
For readers wishing to learn more of the gold prospectivity at Tati, the maps immediately following this comment provide a clear picture.”
Figures:
Maps highlighting the newly granted licence can be found below at the following link:
Tati 049/2022 Licence Grant Map – Power Metal Resources plc (LON: POW)
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.
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 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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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.
Power Metal Exploration Programmes Underway/Results Awaited
Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:
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Project |
Location |
POW % |
Work Completed or Underway |
Results Awaited |
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Alamo Gold Project |
USA |
Earn-in to 75% |
Excavation of multiple test pits and mapping & sampling. |
Field and assay results from on-site work programme. |
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Athabasca Uranium |
Canada |
100% |
Data compilation across uranium properties |
Interpretation results from all Properties complete. Next steps upcoming. |
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Authier North Lithium |
Canada |
Earn-in to 100% |
Soil & rock sampling completed |
Technical Review of exploration results & define next exploration steps. |
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Ditau Project |
Botswana |
50% |
Drill programme focused on key targets notably drilling of potential carbonatites and targeting rare-earth elements. |
Field updates and receipt & review of laboratory assay results. |
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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. |
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Molopo Farms |
Botswana |
53% |
Review of recent exploration findings. |
Determine next exploration steps and action plan. |
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Haneti Project |
Tanzania |
35% |
Diamond drill programme completed |
Receipt & review of laboratory assay results. |
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Victoria Goldfields |
Australia |
49.9% |
Diamond drill programme underway
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Field updates and receipt & review of laboratory assay results. |
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Paterson Projects |
Australia |
83.33% |
Wallal passive seismic and 2D seismic processing work programme completed. Review of historical data and target generation for Ripon Hills & Braeside West projects.
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Findings from multiple work programmes including final approvals and preparations for planned deep diamond drilling. |
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Selta Project |
Australia |
83.33% |
Field reconnaissance work now underway, including mapping and sampling. |
Field updates. |
Power Metal Resources #POW – Tati Project, Botswana. Team Successfully Mobilised and Phase II Geophysical Programme Commences
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces that exploration crews have successfully mobilised and the Phase II work programme has commenced on its gold-nickel properties in the Tati Greenstone Belt (the “Tati Project” or the “Project”) located near Francistown, Botswana.
Power Metal exercised its option to acquire a 100% interest in the Project on 28 July 2021 through its local wholly owned operating subsidiary Power Metal Resources Botswana Pty Limited. Details of the option exercise can be found below.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“We are planning to launch our first drill programme at the Tati Project next month, and this expedited geophysics programme will provide valuable information to further target the drilling activity.
Exploration at the Tati Project is moving very rapidly and we believe there is potential for significant nickel and gold discoveries within the Project footprint.
Further information will be provided on progress in the near term.”
Phase II Exploration Programme
Following the completion and interpretation of the recent Phase I soil geochemical survey (announced 19 August 2021) Power Metal is planning ground-based magnetometer and radiometric geophysical surveys over selected soil anomalies, the planned survey will consist over 125 line-km split across three survey grids.
The planned Phase II ground geophysics programme, all within licence area PL127/2019, consists close spaced (100m line-spacing) combined ground magnetic and radiometric geophysics surveys over three priority survey grids (grid 3, 4 and 5) containing high priority soil anomalies:
· Grid 3: 37.5 line-km of combined geophysics over a circa 3,000m long high-tenor (>100 ppm As) arsenic-in-soil anomaly.
· Grid 4: 37.5 line-km of combined geophysics centred over a roughly 1,000m by 400m wide north-south trending arsenic-in-soil anomaly which is coincident with a mapped contact between the Last Hope Formation, and the Eastern successful Volcanics. This grid has an analogous geological position to the Signal Hill gold mine which is located less than 2.5km to the southeast on the same geological structure.
· Grid 5: 50 line-km of combined geophysics centred over a roughly 1,500m long by 300m wide northeast-southwest trending high-tenor (>250ppm Ni) nickel-in-soil anomaly.
The geophysics surveys will employ Gem Systems GSM-19TW proton magnetometers and Radiation Solutions RS-125 spectrometers. These surveys will assist with identifying important geological structures and help discriminate between various lithological units which may correlate with orogenic gold and/or magmatic nickel mineralisation.
The goal of the above Phase II work programme is to further refine high-priority targets identified by the Phase I programme geochemical results which will then be targeted by Power Metal’s inaugural Rotary Air Blast (“RAB”) drilling campaign on the Project which is planned to start mid-September. Results from this programme and updates on the planned drilling campaign will be released to the market in the coming weeks.
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.
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) |
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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 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 and base 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 Resources #POW – Tati Project Soil Sampling Results Highlight Several Kilometre Scale Nickel and Arsenic In-Soil Anomalies
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the results from the first batch of samples analysed as part of its recently completed Phase I work programme on its gold-nickel properties in the Tati Greenstone Belt located near Francistown, Botswana.
Power Metal exercised its option to acquire a 100% interest in the Project on 28 July 2021 through its local wholly owned operating subsidiary Power Metal Resources Botswana Pty Limited. Details of the option exercise can be found below.
Programme Highlights
· A total of 1,107 soil samples and 49 rock samples were collected across five grid areas as part of the Phase I programme.
· The results presented herein represent 727 soil samples from grids 2 to 5, which were analysed utilising portable field X-Ray Fluorescence equipment (“XRF”).
· The soil samples from grid 1 and the 49 rock samples are currently undergoing fire assay analysis testing for gold in Perth, Australia, at Intertek Group plc’s laboratory. These results will be released in coming weeks once received, analysed and interpreted by Power Metal.
· XRF testing of soil samples across grids 2 to 5 confirm multiple large scale nickel and arsenic anomalies, with arsenic being a pathfinder element for gold deposits in the Tati Greenstone belt.
Figures 1-4, which highlight the results from the Phase I programme across grids 2 to 5 can be viewed on the Company’s website through the following link:
https://www.powermetalresources.com/tati-phase-i-programme-results/
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“The Tati Project is potentially a game changing opportunity for Power Metal. The Tati Greenstone Belt was the site of southern Africa’s first gold rush, but since then its nickel and gold potential has been underexplored.
Results from the XRF analysis of the geochemical samples collected as part of the Phase I work programme have delivered multiple large scale anomalies with notably strong nickel and arsenic-in-soil anomalies. It is now confirmed that we have substantial nickel and gold exploration targets emerging and we are following the pathway needed to make major discoveries.
We are awaiting gold-in-soil assay results from grid 1, as XRF is not a reliable tool for measuring gold values in the context of this project. We expect those results in the near future.
As a result of the positive outcomes of our work completed to date, we expect to move to a Phase II programme shortly, and this is being planned accordingly.
This follow up programme may include ground based geophysics, including possible magnetic surveys over the newly defined nickel targets, as well as Rotary Air Blast (“RAB”) drilling over the gold targets (grids 1, 3 and 4). Additional details about the upcoming Phase II work programme will be announced within the coming weeks.”
Result Highlights
· Grid 2 geochemical results highlight a roughly 1000m x 200m high-tenor nickel-in-soil anomaly which is coincident with a government mapped mafic intrusive body. Of the 80 total samples taken from grid 2, 23 returned greater than 500ppm Ni (up to 1489ppm), and an impressive 50 samples returned greater than 100ppm Ni.
· Minimal work has been completed on grid 2 historically and the strong geochemical anomaly outlined by the Phase I programme represents a compelling target for the discovery of magmatic nickel sulphide mineralisation. The Tekwane nickel mine is located roughly 15km southeast of the newly defined nickel anomaly and is hosted within same aged (pre-cambrian) mafic intrusive units mapped on grid 2.
· Grid 3 geochemical results highlight a roughly 3000m long northwest-southeast trending high-tenor arsenic-in-soil anomaly which ranges in width from 500m to 200m along its extent. It is crosscut by a east-west trending structure which truncates the mineralisation over a distance of less than 150m. Of the 354 samples collected from grid 3, 79 returned greater than 100ppm As (up to 1097ppm As). The anomaly remains open towards the northwest and southeast. Arsenic is known as a strong pathfinder element for gold in the Tati Greenstone belt, and the anomaly represents a compelling target for the company going forward.
· Grid 4 geochemical results highlight a roughly 1000m long by 400m wide north-south trending arsenic-in-soil anomaly. Of particular intereset, the anomaly occurs along a geological contact zone between the Last Hope Formation, and the Eastern Succession Volcanics, a analogous geological position the to Signal Hill gold mine located only 2.5km to the southeast along the same geological structure. Arsenic is known as a strong pathfinder for gold in the Tati Greenstone belt, and the anomalies proximity to the Signal Hill mine and analogous geological position make it a priority exploration target for the Company going forward.
· Grid 5 geochemical results highlight a roughly 1500m long by 300m wide northeast-southwest trending nickel-in-soil anomaly. The Nickel mines of the Tati Greenstone belt, including the Tekwane, Selkirk and Phoenix mines are located less than 5km from the newly defined anomaly. Previous operators within the belt have suggested that the mafic intrusive units which host the nearby nickel mines extends further southeast than previously mapped, and the newly defined robust nickel anomaly identified provides further evidence to this postulation. Due to the proximity to operating nickel mines, the newly defined anomaly at grid 5 will be a priority exploration target for the Company going forward.
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.
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 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 and base 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 Resources #POW – Tati Project – Phase I Programme of Geochemical Sampling, Mapping and Prospecting Complete; Results Pending
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces that it has successfully completed the Phase I work programme on its two gold-nickel licences in the Tati Greenstone Belt (the “Tati Project” or the “Project”) located near Francistown, Botswana.
Power Metal exercised an option to acquire a 100% interest in the Project on 28 July 2021, through its local wholly owned operating subsidiary Power Metal Resources Botswana (Pty). Details of the option exercise can be found in the link below.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“The completion of this Phase I programme so quickly after option exercise is a key step for Power Metal and we look forward to receipt of test results from the 1,156 soil and rock samples collected.
The due diligence work completed earlier this year by our exploration teams demonstrated multiple multi-kilometre arsenic, gold, and nickel anomalies, and we believe the results from our Phase I ground exploration programme will continue to demonstrate the size, scale and magnitude of the targets that exist within the licences.
We expect the results generated will allow us to plan for our Phase II Programme which will include geophysics, as well as Rotary Airblast (“RAB”) drilling, which is planned for late summer 2021.
I want to extend a special thanks to our ground team, whom worked diligently and efficiently over the last two weeks in order to ensure that the programme was completed on schedule and on budget.”
Highlights
· A total of 1,107 soil samples and 49 rock samples were collected across the five grid areas. This exceeds the 1,000 soil samples that was originally planned for the Phase I programme.
· Mapping completed throughout the programme identified several old workings, including historical trenches, mine shafts and adits across both prospecting licences. Samples were taken from these features when possible.
· Several areas were designated for immediate follow up based on mapped structural and geological observations, a Phase II programme including ground-based geophysics is being considered in advance of a Rotary Air Blast drilling programme planned for late summer 2021.
· Soil samples from grids 2-5 (727 samples) will be analysed by portable x-ray fluoresence spectrometer (“pXRF”). Sampes from grid 1 (380 samples), as well as all rock samples have been submitted for labaratory assay by Intertek Group in Perth, Australia.
Labaratory assay and pXRF results from this programme will be released to the market following receipt, compilation and interpretation by Power Metal.
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.
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 company which finances and manages global resource projects and is seeking large scale metal discoveries.
The Company has a principle focus on opportunities offering district scale potential across a global portfolio including precious and base 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 Resources #POW – Geochemical Sampling, Mapping and Prospecting Programme Continues at Pace; Option Exercised to Acquire a 100% Interest in Two Licences in the Tati Greenstone Belt, Botswana
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company announces today that it has exercised its option (the “Option”) to acquire a 100% interest in two gold-nickel exploration licences located within the Tati Greenstone Belt (the “Tati Project” or the “Project”) located near Francistown, Botswana, through its local wholly owned operating subsidiary Power Metal Resources Botswana Pty Limited (“Power Metal Botswana”).
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“The Tati Greenstone Belt is an ancient Archaean greenstone belt in the east of Botswana towards the Zimbabwe border. Francistown and its surrounding area were the site of the first South African gold rush in the nineteenth century, and have not had extensive modern exploration.
The Company’s due diligence review of historic data identified numerous multi kilometre-scale nickel, arsenic and gold anomalies, which are now the subject of an ongoing Phase I exploration programme which includes detailed geochemical sampling, mapping and prospecting.
We consider that the Tati Project is highly prospective and has the potential to deliver major gold and nickel discoveries, and on that basis we have exercised our option to acquire a 100% interest in the Project.
This transaction brings Power Metal to four project interests in Botswana, demonstrating our commitment to this secure and supportive jurisdiction therefore exposing our shareholders to tremendous upside across a highly attractive portfolio which alongside the Tati Projects now includes:
– 50% interest in a strategic joint venture (“SJV”) with Kavango Resources plc (“Kavango”) at the South Ghanzi Kalahari Copper Belt project targeting copper-silver discoveries with multiple airborne electromagnetic (“AEM”) geophysics targets and geochemical copper-zinc anomalies including some geographically extensive targets including the Morula Target which extends for over 18km in length and remains open along strike.
– 50% interest, also in the SJV with Kavango, in the Ditau Camp project targeting rare earth discoveries within large scale potential carbonatite intrusive bodies where three key target areas have recently been prioritised for drilling.
– An effective 50.8% economic interest in the Molopo Farms Complex project with JV partner Kalahari Key Mineral Exploration Pty Ltd targeting magmatic intrusion-hosted massive and disseminated nickel-copper sulphide and platinum group element (“PGE”) discoveries.
The Tati Project will shortly be delivering exploration updates to the market as the samples collected are due to to be assayed utilising multi-element analysis. In addition, the objective is to see drill programmes running across all four Botswana interests in 2021, seeking multiple metal discoveries across the portfolio.”
BACKGROUND – TATI PROJECTS
Readers wishing to review the background should refer to the Company’s announcement dated 6 May 2021 detailing the full terms of the Option and which may be viewed here:
A historical data compilation completed on the Project led to the identification of several kilometre-scale nickel, arsenic and gold in-soil anomalies on PL127/2019 and PL126/2019. The historic data collected and interpreted is of widely spaced soil sampling surveys which were collected and analysed by previous operators.
The results from the data compilation were announced in a due diligence update by the Company on 23 June 2021 and which may be viewed here:
A Phase I work programme is underway on the Project which was announced by the Company on 28 June 2021 and may be viewed here:
EXPLORATION PROGRAMME UPDATE
Power Metal is currently undertaking a systematic, infill and extensional, soil sampling programme which will include over 1,000 invididual soil sampling points, together with outcrop rock sampling and prospecting following up on multiple orogenic gold and magmatic nickel targets identified during the historic data compilation. Further information on exploration plans and current status are provided below.
PL126/2019
Two soil sampling grids have been completed. The first grid, located along the northwestern licence boundary, is targeting a northwest-southeast oriented historic Au-in-soil anomaly. A total of 380 samples have been collected along northeast-southwest oriented sample lines.
These samples are currently en route to South Africa where they will be prepped to be sent on for final geochemical analysis in Australia.
The second grid completed over this licence covers a historic nickel-in-soil anomaly which is coincident with a government mapped mafic/ultramafic intrusive unit. A total of 84 samples were collected which will be assayed by x-ray fluorescence (“XRF”) analysis in the coming days.
PL127/2019
A total of three soil sampling grids will be completed.
The first grid covering Target Area A has been completed which included 350 soil samples. This grid was designed to provide coverage over a northwest-southeast oriented historic arsenic-in-soil anomaly.
Two additional grids covering: 1) Target Area B – over a historic arsenic-in-soil anomaly which is spatially coincident with arsenic anomalies extending from the nearby Signal Hill Gold mine; and 2) Target Area C – covering a historic southeast-northwest trending Nickel-in-soil anomaly which extends on to the nearby Tekwane Nickel mines. These surveys are in progress and the samples will be analysed with a portable XRF spectrometer within the coming days, following completion of the programme.
Maps showing the location of the Project licences , target areas and the sampling undertaken to date may be viewed on the Company’s website through the following link:
https://www.powermetalresources.com/arsenic-geochemistry-map/
EXPLORATION PROGRAMME RATIONALE AND NEXT STEPS
The goal of the Phase I work programme is to further develop some of the high-priority exploration targets on the Tati Project which the Company plans to drill test later in the year.
Results from this programme will be released to the market following receipt, compilation and interpretation by Power Metal.
OPTION EXERCISE – TRANSACTION TERMS
Vendor:
Vital Commodities Pty Ltd, a company registered and Incorporated in Botswana (“VC”) VC is a private Botswana company that owns two prospecting licences in Botswana, (the “Vendors”). VC is 100% owned by Equity Drilling Limited, a company registered and incorporated in Guernsey.
Option Exercise:
Note the Option fee in respect of this transaction was a cash payment of £50,000 to the Vendors as originally announced on 6 May 2021 and now paid. The full amount of £50,000 paid (the “Offset Payment”) may be credited and offset from the cost of the drilling undertaken by Equity Drilling Limited (100% owner of VC and who have a right to quote for drilling work at the licences until 30 September 2022) at the two PLs which are the subject of this Option or at other Power Metal interests in Botswana.
VC will subject, to local authority approvals, arrange immediate transfer of PL 126/2019 and PL 127/2019 into Power Metal Botswana.
The consideration items outlined below, following Option exercise, will not become due and payable until the necessary local authority approvals for the transfer of PL 126/2019 and PL 127/2019 to Power Metal Botswana have been received and the transfer completed.
– Power Metal will pay an initial consideration of £25,000, payable through the issue to the Vendors of 833,333 new ordinary Shares of 0.1p each in the Company (“New Ordinary Shares”) at an issue price of 3.0 pence per New Ordinary Share (“Initial Exercise Shares”).
– Thereafter should Power Metal elect to proceed with the year 3 exploration spend programme (for the year ending 30 September 2022) it will pay a further consideration of £50,000, payable to the Vendors through the issue of 833,333 New Ordinary Shares at an issue price of 3.0p each for each licence where such spending is confirmed, thereby if both
– confirmed then 1,666,666 New Ordinary Shares would be issued (the “Further Exercise Shares”).
– In addition, Power Metal will pay a single further consideration payment of £100,000 through the issue the Vendors of 3,333,333 New Ordinary Shares at an issue price of 3.0p (“Final Exercise Shares”) if either of the two following conditions are met:
– (1) Confirmation of a 250,000 oz JORC (2012) compliant gold Mineral Resource across the two prospecting licences
– (2) Confirmation of a 5,000,000 tonne economic nickel deposit at a grade of >1.5% nickel.
– Additionally, the Company shall issue to VC 5,833,332 warrants over New Ordinary Shares (the “Vendor Warrants”) in two separate tranches of 2,916,666 warrants each as follows:
2,916,666 Vendor Warrants shall be issued to acquire 2,916,666 New Ordinary Shares at an exercise price of 5p per share, exercisable over a 2-year period from 6 May 2021 and which are only exercisable on completion of exploration drilling against which the £50,000 Offset Payment has been credited (the “5p Vendor Warrants”).
The 5p Vendor Warrants shall be subject to a 5-day VWAP accelerator, by which should Power Metal shares trade above 10p for 5 trading days then the Company shall have the right to serve notice on VC that it must exercise and pay for the exercised 5p Vendor Warrants within 14 calendar days or the 5p Vendor Warrants shall be cancelled.
2,916,666 Vendor Warrants shall be issued to acquire 2,916,666 New Ordinary Shares at an exercise price of 7.5p per share, exercisable over a 2-year period from 6 May 2021 and which are only exercisable on completion of exploration drilling against which the £50,000 Offset Payment has been credited (the “7.5p Vendor Warrants”).
The 7.5p Vendor Warrants shall be subject to a 5-day VWAP accelerator, by which should Power Metal shares trade above 15p for 5 trading days then the Company shall have the right to serve notice on VC that it must exercise and pay for the exercised 7.5p Vendor Warrants within 14 calendar days or the 7.5p Vendor Warrants shall be cancelled.
Up to 30 September 2022 Power Metal will engage VC to quote for all drilling activities undertaken on PL 126/2019 and PL 127/2019.
The Vendors and their professional licensing and geological teams will continue to work with Power Metal following Option exercise to manage licences and third party relationships, undertake ground exploration and to help where appropriate to further build the licence footprint in Botswana. Reasonable commercial terms will be agreed for any additional work undertaken.
TATI GREENSTONE BELT INFORMATION
The Tati Greenstone Belt (“TGB”) is located in the vicinity of Francistown, adjacent to the Zimbabwe border, in north-eastern Botswana. With a total strike length of 65km and up to 20km in width the TGB hosts a large number of orogenic style gold deposits and several economically significant intrusive magmatic nickel-copper-platinum group elements (“Ni-Cu-PGE”) rich sulphide deposits.
A gold rush started at Tati in 1867 leading to the establishment of Francistown and over 70 reported small scale gold mining operations.
The TGB is Botswana’s only gold producing region with the Mupane gold mine (held by Galane Gold Ltd) being the country’s only major gold producer. Mupane was formerly an open-pit operation and is now an underground mine. It is located in the southern part of the TGB.
The known nickel deposits on the greenstone belt consist almost entirely of disseminated to semi massive sulphide bodies hosted by a series of late stage gabbroic-troctolitic intrusive bodies. Significant nickel operations operated until 2016, including the former Tati Nickel Mining’s Selkirk underground mine which commenced production in 1989 and the Phoenix open pit which started in 1995. Both deposits are located in the south-central portion of the TGB.
Geologically the TGB is part of the Francistown Arc Complex within the southern margin of the Archean age Zimbabwe Craton in the northern contact zone of the Limpopo Belt. The principal lithologies of the TGB are lower greenschist to lower amphibolite facies volcanic and sedimentary rocks, constrained by three fault-bounded volcano-plutonic sequences which are intruded by granitoids.
Whilst there is a long history of small scale gold mining on the TGB, the Company believes it to be under explored by modern standards and systematic exploration focussing on areas with sand cover and geophysics targeting greater depths are likely to yield further gold and nickel discoveries.
GLOSSARY
Orogenic Gold (Deposits) – Gold deposits found within metamorphic belts which form as a result of major crustal deformation events.
Intrusive Magmatic Nickel (Deposits) – Nickel deposits found at the base of large mafic and ultramafic intrusive bodies.
Arsenic/Gold/Nickel-in-soil anomaly – Geochemical anomaly defined by increased arsenic/gold/nickel levels over background.
PGE – Platinum group elements (ruthenium, rhodium, palladium, osmium, iridium, and platinum
Mafic Intrusive Unit – Igneous rock that is dominated by magnesium and iron rich silicate minerals including pyroxene, amphibole, olivine, and mica.
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.
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 large scale metal discoveries.
The Company has a global portfolio of project interests including precious and base 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.
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 – Tati Project Team Mobilises to Project Licences in Botswana to Undertake Geochemical Sampling, Mapping and Prospecting
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce that the Phase I work programme has commenced on the gold-nickel properties in the Tati Greenstone Belt (the “Tati Projects” or the “Projects”) located near Francistown, Botswana.
Power Metal has an option (the “Option”) to acquire a 100% interest in the Tati Projects through its local wholly owned operating subsidiary Power Metal Resources Botswana Pty Limited.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“We have been able to expedite the arrival of the ground team to the Tati Projects to undertake this key initial exploration programme with due dispatch.
The findings from our due diligence work to date have demonstrated several kilometre-scale arsenic, gold and nickel anomalies which highlight the potential of the Tati Projects and which require validation and target escalation through this Phase I work programme.
Further information will follow as we progress our work on these exciting prospects.”
BACKGROUND
Readers wishing to review the background should refer to the Company’s announcement dated 6 May 2021 detailing the full terms of the Option and which may be viewed here:
A historical data compilation completed on the recently acquired Projects led to the identification of several kilometre-scale nickel, arsenic and gold in-soil anomalies on PL127/2019 and PL126/2019. The historic data collected and interpreted is of widely spaced soil sampling surveys which were collected and analysed by previous operators.
The results from the data compilation were announced in a due diligence update by the Company on 23 June 2021 and which may be viewed here:
EXPLORATION PROGRAMME
Power Metal is now commencing a systematic, infill and extensional, geochemical soil sampling programme which will include over 1,000 planned sample points, together with outcrop rock sampling prospecting, to follow-up on the orogenic gold and magmatic nickel targets identified during the historic data compilation.
The Phase I exploration campaign will include infill soil sampling and prospecting over:
· >2km long gold-in-soil anomaly located near the northwestern end of PL126/2019;
· >1km long nickel-in-soil anomaly located near the southeastern end of PL126/2019 which is coincident with a government mapped mafic/ultramafic intrusive unit;
· >2km long nickel-in-soil anomaly located near the northwestern end of PL127/2019 which remains open towards the Phoenix, Selkirk and Tekwane nickel-copper-PGE rich deposits located less than 7km northwest of the Licence;
· several kilometre-scale arsenic-in-soil anomalies located near the eastern end of PL127/2019 which appear to be spatially related to the nearby Jim’s Luck and Signal Hill gold mines; plus
· hand trenching over a historic soil sample locality near the northern end of PL127/2019 which returned a highly anomalous 3.6g/t gold.
The goal of the Phase I work programme is to further develop some of the high-priority exploration targets on the Tati Projects which, subject to Option exercise, the Company plans to drill test later in the year.
Results from this programme will be released to the market following receipt, compilation and interpretation by Power Metal.
GLOSSARY
Orogenic Gold (Deposits) – Gold deposits found within metamorphic belts which form as a result of major crustal deformation events.
Intrusive Magmatic Nickel (Deposits) – Nickel deposits found at the base of large mafic and ultramafic intrusive bodies.
Arsenic/Gold/Nickel-in-soil anomaly – Geochemical anomaly defined by increased arsenic/gold/nickel levels over background.
PGE – Platinum group elements (ruthenium, rhodium, palladium, osmium, iridium, and platinum)
Mafic Intrusive Unit – Igneous rock that is dominated by magnesium and iron rich silicate minerals including pyroxene, amphibole, olivine, and mica.
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.
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 and base 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.
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 – Tati Project Botswana – Due Diligence finds significant arsenic, nickel and gold-in-soil anomalies identified from historical data review.
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce an update from the ongoing due diligence work at the gold-nickel properties (the “Tati Project” or the “Project”) in the Tati Greenstone Belt, Botswana where Power Metal has an option (the “Option”) to acquire a 100% interest in the Project.
BACKGROUND
Readers wishing to review the background should refer to the Company’s announcement dated 6 May 2021 detailing the full terms of the Option and which may be viewed here:
Should Power Metal exercise the Option it will acquire a 100% interest in two prospecting licences (“PLs”) PL127/2019 and PL126/2019 prospective for gold and nickel and located upon the Tati Greenstone Belt, Botswana.
The Option allows for a 60 business day due diligence period, and should Power Metal exercise the Option, it will undertake the licence acquisitions through its newly formed 100% owned subsidiary Power Metal Resources Botswana (Pty) Limited (“Power Metal Botswana”).
CHIEF EXECUTIVE OFFICER COMMENT
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
“Power Metal has three current project interests in Botswana (Molopo Farms Complex, Kalahari Copper Belt South Ghanzi Project and the Ditau Camp Project) with active exploration underway at present and where we have already announced significant positive developments including to date:
– The confirmation of significant nickel sulphide intersections at the Molopo Farms Complex project targeting large scale nickel sulphide/PGE discoveries and where Power Metal has a total current effective economic interest of 50.8%.
– The identification of 7 large anomalies from airborne electromagnetic (“AEM”) surveys at the South Ghanzi Project in the Kalahari Copper Belt targeting large scale copper-silver discoveries and where Power Metal has a 50% interest. To date two primary targets, Morula and Acacia, will be the focus of initial planned drilling where intensive soil sampling revealed high copper and zinc in soils confirming the AEM targets.
The announcement today in respect of our potential fourth project interest in Botswana, the Tati Project, is another significant development with our historical review identifying substantial arsenic, nickel and gold anomalies extending over multi-kilometre lengths within the two licence areas.
These findings compel us to move quickly with ground exploration work to validate and confirm the data which, if successful, could mean the Tati Project holds considerable potential for large scale gold and nickel discoveries.
Further updates from our work programmes will follow as ground operations continue.”
DUE DILIGENCE FINDINGS TO DATE AND PROPOSED WORK PROGRAMMES
Multi-Kilometre Scale Anomalies Identified
· A historical data compilation, completed on the recently acquired prospecting licences, has led to the identification of multi-kilometre-scale nickel, arsenic and gold in-soil anomalies on PL127/2019 and PL126/2019.
· The historic data collected and interpreted is of widely spaced soil sampling surveys which were undertaken by previous operators.
Prospecting Licence 127/2019
This licence is located near the southern extent of the north-northwest striking Tati Greenstone Belt, roughly 40km southwest of Francistown, Botswana, and less than 7km from the Mupane underground gold mine.
The licence covers a total area of 89km2 and is prospective for orogenic gold and intrusive magmatic nickel mineralisation. The licence is also believed to cover the southern extent of prolific gabbroic-troctolitic intrusions which host the Phoenix, Selkirk and Tekwane nickel-copper-PGE rich deposits located along the periphery of the Tati Greenstone Belt less than 7km from the licence.
Notably, a >2.5km nickel-in-soil anomaly, with values up to 360ppm nickel, has been highlighted near the north-western border of the licence where the interpreted extension of the gabbroic intrusions is believed to outcrop below thin Kalahari cover.
Additionally, the historic data shows a northeast-southwest trending >5km long arsenic-in-soil anomaly on PL127/2019 as well as multiple kilometre-scale arsenic-in-soil anomalies which extend directly from the Signal Hill gold deposit located southeast of the licence.
Prospecting Licence PL126/2019
This licence is located near the northern extent of the Tati Greenstone Belt, less than 10km southeast of Francistown and is adjacent to the Golden Eagle deposit (Shashe Mining Licence).
The licence covers a total area of 35km2 and is prospective for orogenic gold and magmatic nickel mineralisation.
The historic data analysis has uncovered a >2km long, northwest-southeast trending gold-in-soil anomaly, as well as a >1km long, nickel-in-soil anomaly which is coincident with a government mapped mafic intrusive unit.
Additionally, several mine dumps were identified in the north-western part of the licence which will be evaluated by the Company.
Next Steps – Due Diligence Ground Exploration
The Company will shortly commence a Phase I ground exploration programme as part of its due diligence which will include infill geochemical survey grids, as well as mapping and prospecting over these newly uncovered historic geochemical anomalies.
This Phase I exploration work will allow the Company to take a decision on Option exercise and should the Company exercise the Option, to develop a Phase II ground exploration programme which is expected to include drilling at the earliest opportunity.
TATI GREENSTONE BELT INFORMATION
The Tati Greenstone Belt (“TGB”) is located in the vicinity of Francistown, adjacent to the Zimbabwe border, in north-eastern Botswana. With a total strike length of 65km and up to 20km in width the TGB hosts a large number of orogenic style gold deposits and several economically significant intrusive magmatic Nickel-Copper-Platinum Group Elements (“Ni-Cu-PGE”) rich sulphide deposits.
A gold rush started at Tati in 1867 leading to the establishment of Francistown and over 70 reported small scale gold mining operations.
The TGB is Botswana’s only gold producing region with the Mupane gold mine (held by Galane Gold Ltd) being the country’s only major gold producer. Mupane was formerly an open-pit operation and is now an underground mine. It is located in the southern part of the TGB.
The known nickel deposits on the greenstone belt consist almost entirely of disseminated to semi massive sulphide bodies hosted by a series of late stage gabbroic-troctolitic intrusive bodies. Significant nickel operations operated until 2016, including the former Tati Nickel Mining’s Selkirk underground mine which commenced production in 1989 and the Phoenix open pit which started in 1995. Both deposits are located in the south-central portion of the TGB.
Geologically the TGB is part of the Francistown Arc Complex within the southern margin of the Archean age Zimbabwe Craton in the northern contact zone of the Limpopo Belt. The principal lithologies of the TGB are lower greenschist to lower amphibolite facies volcanic and sedimentary rocks, constrained by three fault-bounded volcano-plutonic sequences which are intruded by granitoids.
Whilst there is a long history of small scale gold mining on the TGB, the Company believes it to be under explored by modern standards and systematic exploration focussing on areas with sand cover and geophysics targeting greater depths are likely to yield further gold and nickel discoveries.
GLOSSARY
Orogenic Gold (Deposits) – Gold deposits found within metamorphic belts which form as a result of major crustal deformation events.
Intrusive Magmatic Nickel (Deposits) – Nickel deposits found at the base of large mafic and ultramafic intrusive bodies.
Arsenic-in-soil anomaly – Geochemical anomaly defined by increased arsenic levels over background.
Gold-in-soil anomaly – Geochemical anomaly defined by increased gold levels over background.
PGE – Platinum group elements (ruthenium, rhodium, palladium, osmium, iridium, and platinum)
Gabbroic-troctolitic intrusives – Coarse grained, dark coloured, intrusive rocks composed mainly of pyroxene, plagioclase and minor amounts of amphibole and olivine.
Fault-bounded volcano-plutonic sequences – Groupings of intrusive and extrusive igneous rocks which are separated by large-scale regional fault structures.
M afic I ntrusive U nit – Igneous rock that is dominated by magnesium and iron rich silicate minerals including pyroxene, amphibole, olivine, and mica.
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.
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 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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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 (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 and base 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.
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 #POW – Option Agreement for Botswana Gold-Nickel Project
Option Agreement – Botswana Gold-Nickel Properties
Company has Signed an Option Agreement to Acquire a 100% Interest in Two Gold – Nickel Prospecting Licences in the Tati Greenstone Belt, Botswana, with a down payment on drilling.
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce it has secured an option (the “Option”) to acquire two prospecting licences (“PLs”) prospective for gold and nickel and located upon the Tati Greenstone Belt, Botswana.
The Option allows for a 60 business day due diligence period, and should Power Metal exercise the Option, it will undertake the licence acquisitions through its newly formed 100% owned subsidiary Power Metal Resources Botswana (Pty) Limited (“Power Metal Botswana”).
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
“We recently formed Power Metal Botswana to provide a holding company for new acquisitions in Botswana and I am pleased to announce this first transaction. Subject to due diligence, this acquisition would give the Company exposure to a new strategic project in the heart of the Tati Greenstone Belt, an under explored area which we believe holds considerable potential for new gold and nickel discoveries.
This announcement further confirms the Company’s commitment to expanding our operational interests in Botswana, which is a first class destination for responsible exploration companies. Uniquely, the transaction incorporates an Option fee that is convertible into a down payment against project drilling in Botswana.
I look forward to providing further information as our due diligence work progresses.”
Vendor and Prospecting Licence Information
Vital Commodities Pty Ltd, a company registered and Incorporated in Botswana (“VC”) VC is a private Botswana company that owns two prospecting licences in Botswana, (the “Vendors”). VC is 100% owned by Equity Drilling Limited, a company registered and incorporated in Guernsey.
The PLs owned by the Vendors and the subject of this transaction are as follows:
PL127/2019
PL127/2019 is located near the southern extent of the north-northwest striking Tati Greenstone Belt, roughly 40km southwest of Francistown, Botswana, and less than 7km from the Mupane underground gold mine.
PL127/2019 covers a total area of 89km2 and is prospective for orogenic gold and intrusive magmatic nickel mineralisation.
Several untested kilometre-scale Arsenic (‘As’)- and Gold (‘Au’)-in-soil anomalies extend onto PL127/2019 from the northeast and southeast.
The licence is also believed to cover the southern extent of prolific gabbroic-troctolitic intrusions which host the Phoenix, Selkirk and Tekwane Ni-Cu-PGE rich deposits located along the periphery of the Tati Greenstone Belt less than 7km from the licence. The magmatic Ni-Cu-PGE potential the licence possesses has been generally overlooked by previous operators.
PL126/2019
PL126/2019 is located near the northern extent of the Tati Greenstone Belt, less than 10km southeast of Francistown and is adjacent to the Golden Eagle deposit (Shashe Mining Licence).
PL126/2019 covers a total area of 35km2 and is prospective for orogenic gold mineralisation. The licence hosts several untested arsenic and gold in-soil anomalies as well as a large historic mine dump which has received little known follow up or modern exploration.
Tati-Greenstone Belt Information
The Tati Greenstone Belt (“TGB”) is located in the vicinity of Francistown, adjacent to the Zimbabwe border, in north-eastern Botswana. With a total strike length of 65km and up to 20km in width the TGB hosts a large number of orogenic style gold deposits and several economically significant intrusive magmatic Nickel-Copper-Platinum Group Elements (“Ni-Cu-PGE”) rich sulphide deposits.
A gold rush started at Tati in 1867 leading to the establishment of Francistown and over 70 reported small scale gold mining operations.
The TGB is Botswana’s only gold producing region with the Mupane gold mine (held by Galane Gold Ltd) being the country’s only major gold producer. Mupane was formerly an open-pit operation and is now an underground mine. It is located in the southern part of the TGB.
The known nickel deposits on the greenstone belt consist almost entirely of disseminated to semi massive sulphide bodies hosted by a series of late stage gabbroic-troctolitic intrusive bodies. Significant nickel operations which operated until 2016, included the former Tati Nickel Mining’s Selkirk underground mine which commenced production in 1989 and the Phoenix open pit which started in in 1995. Both deposits are located in the south-central portion of the TGB.
Geologically the TGB is part of the Francistown Arc Complex within the southern margin of the Archean age Zimbabwe Craton in the northern contact zone of the Limpopo Belt. The principal lithologies of the TGB are lower greenschist to lower amphibolite facies volcanic and sedimentary rocks, constrained by three fault-bounded volcano-plutonic sequences which are intruded by granitoids.
Whilst there is a long history of small scale gold mining on the TGB, the Company believe it to be underexplored by modern standards and systematic exploration focussing on areas with sand cover and geophysics targeting greater depths, are likely to yield further gold and nickel discoveries.
Option Agreement Information
The Option:
- Power Metal has signed an option agreement to acquire a 100% interest in PL 126/2019 and PL 127/2019, being two granted prospecting licences in Botswana within the Tati Greenstone Belt and held by the Vendors.
- The Option provides a 60 business-day period, during which Power Metal may undertake due diligence and notify the Vendors of Option exercise to acquire 100% of P L 126/2019 and PL 127/2019 from the owner of the said prospecting licences.
- The Option fee is to be satisfied through a cash payment of £50,000 to the Vendors. The full amount of £50,000 paid may be credited and offset from the cost of the drilling u ndertaken by Equity Drilling Limited (100% owner of VC) at the two PLs which are the subject of this Option or at other Power Metal interests in Botswana. The payment will be made using existing Power Metal cash resources.
Upon Option Exercise:
- VC will subject, to local authority approvals, arrange immediate transfer PL 126/2019 and PL 127/2019 into Power Metal Botswana.
- The consideration items outlined below, following Option exercise, will not become due and payable until the necessary local authority approvals for the transfer to Power Metal Botswana have been received and the transfer completed.
- Should Power Metal at its sole volition exercise the Option for the acquisition of PL 126/2019 and PL 127/2019, the Company will pay an initial consideration of £25,000, payable through the issue to the Vendors of 833,333 new ordinary Shares of 0.1p each in the Company (“New Ordinary Shares”) at an issue price of 3.0 pence per New Ordinary Share (“Initial Exercise Shares”).
- Thereafter should Power Metal elect to proceed with the year 3 exploration spend programme (for the year ending 30 September 2022) it will pay a further consideration of £50,000, payable to the Vendors through the issue of 833,333 New Ordinary Shares at an issue price of 3.0p each for each licence where such spending is confirmed, thereby if both confirmed then 1,666,666 New Ordinary Shares would be issued (the “Further Exercise Shares”).
- In addition, Power Metal will pay a single further consideration payment of £100,000 through the issue the Vendors of 3,333,333 New Ordinary Shares at an issue price of 3.0p (“Final Exercise Shares”) if either of the two following conditions are met:
– (1) Confirmation of a 250,000 oz JORC (2012) compliant gold Mineral Resource across the two prospecting licences
– (2) Confirmation of a 5,000,000 tonne economic nickel deposit at a grade of >1.5% nickel.
- Additionally, the Company shall issue to VC 5,833,332 warrants (the “Vendor Warrants”) in two separate tranches of 2,916,666 warrants each:
- 2,916,666 Vendor Warrants shall be issued to acquire New Ordinary Shares at an exercise price of 5p per share, exercisable over a 2-year period from today’s date and which are only exercisable on completion of drilling against which the £50,000 offset payment has been made and successful transfer of PLs 126/2019 and 127/2019 to Power Metal Botswana (the “5p Vendor Warrants”). The 5p Vendor Warrants shall be subject to a 5-day VWAP accelerator, by which should Power Metal shares trade above 10p for 5 trading days then the Company shall have the right to serve notice on VC that it must exercise and pay for the exercised 5p Vendor Warrants within 14 calendar days or the 5p Vendor Warrants shall be cancelled.
- 2,916,666 Vendor Warrants shall be issued to acquire New Ordinary Shares at an exercise price of 7.5p per share, exercisable over a 2-year period from today’s date and which are only exercisable on completion of drilling against which the £50,000 offset payment has been made and successful transfer of PLs 126/2019 and 127/2019 to Power Metal Botswana (the “7.5p Vendor Warrants”). The 7.5p Vendor Warrants shall be subject to a 5-day VWAP accelerator, by which should Power Metal shares trade above 15p for 5 trading days then the Company shall have the right to serve notice on VC that it must exercise and pay for the exercised 7.5p Vendor Warrants within 14 calendar days or the 7.5p Vendor Warrants shall be cancelled.
- Up to 30 September 2022 Power Metal will engage VC to quote for all drilling activities undertaken on PL 126/2019 and PL 127/2019.
- The Vendors and their professional licensing and geological teams will continue to work with Power Metal following Option exercise to manage licences and third party relationships, undertake ground exploration and to help where appropriate to further build the licence footprint in Botswana. Reasonable commercial terms will be agreed for any additional work undertaken.
Glossary:
Orogenic Gold (Deposits) – Gold deposits found within metamorphic belts which form as a result of major crustal deformation events.
Intrusive Magmatic Nickel (Deposits) – Nickel deposits found at the base of large mafic and ultramafic intrusive bodies.
Arsenic-in-soil anomaly – Geochemical anomaly defined by increased arsenic levels over background.
Gold-in-soil anomaly – Geochemical anomaly defined by increased gold levels over background.
PGE – Platinum group elements (ruthenium, rhodium, palladium, osmium, iridium, and platinum)
Gabbroic-troctolitic intrusives – Coarse grained, dark coloured, intrusive rocks composed mainly of pyroxene, plagioclase and minor amounts of amphibole and olivine.
Lower greenschist to amphibolite facies – Metamorphic rocks with increased chlorite, serpentine, and epidote (greenschist), or amphibole and plagioclase (amphibolite) which are indicative of a high degree of metamorphism caused my intense heat and pressure in the subsurface.
Granitoids – Coarse grained igneous rock composed mostly of quartz, alkali-feldspar and plagioclase.
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.
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 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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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 |