Power Metal Resources plc (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announcesan acquisition of additional uranium properties surrounding the Athabasca Basin in northern Saskatchewan, Canada (the “Acquisition”).
· Power Metal has acquired outright three uranium properties covering 271km2 surrounding the prolific Athabasca Basin in Saskatchewan, Canada.
· The cost of the Acquisition is CAD$137,500 (£88,872) payable as CAD$25,000 (£16,158) cash and CAD$112,500 (£72,714) through the issue of 5,703,599 new ordinary shares of 0.1p in the Company (“Ordinary Shares”) at an issue price of 1.275p.
· The Acquisition increases Power Metal’s Athabasca uranium interests to 10 properties covering an area totalling 721km2.
· Planning is nearing completion for the ground exploration programmes to commence in the near term at the Tait Hill, Soaring Bay, Clearwater and Thibault Lake uranium properties, further information in respect of which was announced on 12 July 2022.
· In addition to exploration of retained uranium projects, the Company is working on corporate options in relation to certain of its Athabasca uranium interests.
Paul Johnson, Chief Executive Officer of Power Metal Resources commented:
“We have acted quickly to secure this additional uranium package in the Athabasca Basin area of Saskatchewan, Canada. With these acquisitions our portfolio of 10 properties now covers a combined total footprint of 721km2. The scale of this holding presents a significant project package especially given the importance of the highly prospective uranium exploration in the region. We are also looking to add further ground to our holdings.
However, that said, it is not merely a move to scale that we seek, but a strategic uranium package enabling us to develop a combination of internal exploration projects, and to generate value through the commercialisation of certain of the properties.
This is the essence of the Power Metal business with metal discoveries through exploration, combined with corporate activity to build balance sheet strength. Both strategies individually can potentially deliver significant value for shareholders, and together they represent a powerful combination.
Further news updates covering our uranium interests are expected in the near future.”
Power Metal has acquired a 100% interest in three uranium exploration properties Reindeer Lake, Old Woman Rapids and Porter Lake as detailed in Table 1 below (the “Properties”).
The vendors of the Properties (the “Vendors”) are a consortium led by established local prospector Brian Fowler who was previously the vendor of the Schreiber-Hemlo properties that Power Metal sold in exchange for a strategic shareholding in First Class Metals plc, as announced on 7 September 2021.
As consideration for the 100% acquisition of the properties, Power Metal will pay the Vendors a total of CAD$137,500 (£88,872) (the “Consideration”).
The Consideration is payable as CAD$25,000 (£16,158) cash and CAD$112,500 (£72,714) through the issue of 5,703,599 new Ordinary Shares of 0.1p at an issue price of 1.275p (“Acquisition Shares”). Acquisition Shares will be held for at least 4 months from the date of this Agreement unless Vendors and Power Metal agree otherwise in writing.
NEW PROJECT ADDITIONAL INFORMATION
Porter Lake Uranium Property Overview
· The Porter Lake uranium Property is located approximately 60km south of Sandy Lake, Saskatchewan, and is less than 35km west of the all-season Provincial highway 914 which services the Key Lake and McArthur River uranium mines located northeast of the Property. The Property shares an extended claim border with Canadian listed ALX Resource Corp. (CSE: AL).
· The Property covers 108.54 km2 and is less than 1km southwest along strike of Baselode Energy Corporation’s Catharsis Project. The Porter Lake Property is located near to the geological contact between the Western Wollaston and Mudjatik domains – two highly prolific geological domains where over 2 billion pounds of Triuranium Octoxide (U308) have been discovered.1
· Multiple uranium-rich occurrences have been discovered within the Property including a large (610m) radiometric anomaly, outlined in the Government of Saskatchewan 1954 airborne geophysical survey that was later drill tested by Nova Uranium Mines Ltd. in 1955 and which returned drill intercepts of up to 0.21% U308 over 0.6m.
Old Woman Rapids Uranium Property Overview
· The Old Woman Rapids Property is located approximately 80km northeast of Buffalo Rapids, Saskatchewan, and is less than 60km west of the all-season Provincial highway 914 which services the Key Lake and McArthur River uranium mines located northeast of the Property.
· The Property covers 129.58 km2 and is located less than 25km southwest along strike of Baselode Energy Corporation’s Catharsis Project. Like the Porter Lake Property the Old Woman Rapids Property is located near to the prospective geological contact between the Western Wollaston and Mudjatik domains.1
· Multiple uranium-rich occurrences have been discovered within the property including rock grab samples that returned assays of 0.57% and 0.43% U308 and 0.66% and 0.80% Thorium Dioxide (ThO2) respectively.
Reindeer Lake Uranium Property Overview
· The Reindeer Lake Property is located approximately 30km north of Southend, Saskatchewan, and less than 15km west of the all-season Provincial highway 905. The Property shares a claim border with privately owned Ripple Exploration Limited’s Williams Lake Property.
· The Property covers 33.66 km2 and is centred around the Saskatchewan Mineral Deposit Index (SMDI) Porter Lake Uraniferous Pegmatite showing.
· Several uranium-rich occurrences have been discovered within the Property including rock grab samples that returned values of up to 0.084% U308. The samples were taken following the completion of an airborne radiometric survey in 1969 carried out by Sunlite Oil Company Limited that outlined multiple anomalies around the shores of Porter Lake. Uranium Bloom was noted at several localities around the lake which were coincident with the airborne anomalies identified.
URANIUM PROPERTIES – HOLDING STRUCTURE
Power Metal has a 100% subsidiary Power Metal Canada Inc (“Power Canada”), which acts as the holding Company for certain Canadian project operations. Power Canada has a wholly owned subsidiary, 102134984 Saskatchewan Ltd, which is the holder of the Company’s Athabasca uranium portfolio.
Table 1: 102134984 Saskatchewan Ltd., Athabasca Basin Property Holdings*Read More
* Property acquisition announced today – licence transfers in progress
1 – https://baselode.com/projects/catharsis-project/
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 5,703,599 Acquisition Shares to be admitted to trading on AIM which is expected to occur on or around 2 August 2022 (“Admission”). The Acquisition Shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.
Following Admission, the Company’s issued share capital will comprise 1,537,512,064 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
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
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