Power Metal (POW.L) Financing Raises £1,000,000

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce that it has raised £1,000,000 through a subscription (the “Financing”) to support strategic expansion of exploration activities and commercialisation of selected project interests.

HIGHLIGHTS

· The Financing will support the acceleration of project exploration across the Company’s current portfolio of interests and enable proactive and robust negotiations in respect of commercialisation activities where the Company is seeking to crystallise value and further bolster its ‘balance sheet’ (see below for an outline of the Company’s plans);

· Power Metal has raised £1,000,000 at price of 0.475p per share (the market closing mid-price at on Friday 3 July 2020) through the issue of 210,526,316 new ordinary shares of 0.1 pence each in the Company (the “Subscription Shares”) ;

· Each Subscription Share will have an attaching warrant with an exercise period of two years from admission of the Subscription Shares and exercisable at 0.75p per new ordinary share of 0.1 pence each in the Company (“Ordinary Share”), creating 210,526,316 new warrants (the “Financing Warrants”) which are subject to an acceleration clause whereby should the Company’s volume weighted average share price exceed 3.00p for 5 consecutive trading days, the Company may at any time write to warrant holders providing 10 working days’ notice of accelerated exercise, with 10 working days thereafter for payment;

· POW Board members have subscribed for a total of 31,710,526 Subscription Shares for an amount invested of £150,625, with Paul Johnson CEO, investing £95,000 through his family company Value Generation Limited;

· The funds raised will increase the available working capital (cash and listed financial instruments only) of the Company to over £1.5 million.

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:

“The £1 million raised today, when added to our existing material working capital, changes the dynamic for Power Metal, enabling us to boldly go forward and invest strongly in the avenues we anticipate can create real value for the Company and its shareholders.

We raised at the market price, which is notable, as the protection of existing shareholders is important to us. Moreover, board members have invested £150,625 in the Financing standing alongside our shareholders to demonstrate belief in the vision we have for the Company.

Our strategic aims underlying that vision are clear. We are aiming for a major discovery or discoveries in our portfolio of projects, not an easy feat but possible with the support of shareholders and new investors in the manner we have seen today. However, being reliant on the market for finance is not enough and is perhaps the one area that makes junior resource companies vulnerable. So, another strategic aim is to strengthen our working capital rapidly by crystallising value from some of our interests and building our Company ‘balance sheet’. By doing so we are aiming for financial self-sufficiency, another challenging target but one we are striving for in earnest.

We aim to do things differently, to surprise the market with innovation and a level of driven determination rarely matched by our peers.”

Full RNS http://www.share-talk.co.uk/announcements/rns/power-metal/financing-raises


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