Power Metal Completes the Transaction to sell its 100% owned Schreiber-Hemlo Interests to First Class Metals Ltd which is planning to list in London in Q4 2021
Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces completion of the sale of its Schreiber-Hemlo project interests located in Ontario, Canada, to First Class Metals Ltd (“First Class” or “FCM”).
The terms of the transaction were agreed on 07/09/21 and the related announcement may be viewed through the link below:
Power Metal has arranged for the transfer of Schreiber-Hemlo claims held by its wholly-owned Canadian subsidiary Power Metal Resources Canada Inc (“Power Metal Canada”) to FCM’s wholly owned Canadian subsidiary.
Power Metal Canada has been issued with 333,334 FCM shares at a price of £3 per share for total consideration of £1 million.
Power Metal has also now subscribed for 9,588 shares in the pre-IPO financing of FCM at £3 per FCM share. The total subscription value of £28,764 has been paid to FCM.
Power Metal now has an interest in 342,922 FCM shares representing circa 36.1% of FCM after allowance for the pre-IPO fundraise shares issued by FCM.
Latest updates on FCM’s progress may be viewed through the FCM website and the following link:
Whilst it is the intention of FCM to pursue a listing on a recognised stock exchange in London targeted for late 2021, there is no guarantee that the IPO of FCM will proceed, whether it will be able to raise additional equity funding or at what price it will issue new shares to potential investors.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc commented:
“Completion of this transaction sees Power Metal hold a significant interest in FCM, and we look forward to FCM’s progress with exploration and corporate activities in the weeks and months ahead.
Notably we look forward to the planned listing of FCM on the London capital markets and the value generative opportunity this could present for Power Metal.
This is the first completed corporate disposal/spin-out event for the Company, with a number of other potential spin-out transactions currently in progress.
The Power Metal business is focused on exploration to secure major metal discoveries, however our corporate disposal/spin-out developments have the potential to dramatically build our working capital and provide considerable financial backing to our significant exploration ambitions across the portfolio.”
ABOUT FIRST CLASS METALS
First Class Metals Limited i s a minerals exploration company focused on proving and developing the significant potential of their flagship property North Hemlo as well as systematic exploration of the Esa, Sugar Cube, McKellar, Magical, Enable and Coco East projects, totalling 176km² in the Hemlo – Harte gold mines region in the Western portion of the Wawa-Abitibi Gold Belt of Ontario, Canada
Geologically the claim blocks are located within the Schreiber-Hemlo Greenstone Belt with target minerals gold, silver, base and battery metals in typical Archaean / Hemlo style mineralised settings.
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
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.
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