Power Metal (POW.L) Raises £1.05 million to Accelerate Operational and Strategic Opportunities

Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces the Company has raised £1.05 million through a placing of new ordinary shares of 0.1 pence each in the Company as detailed below (the “Placing”).

HIGHLIGHTS:

– Power Metal raised £1.05 million at the closing market mid-price of 1.75p on 12/11/21.

– Funds raised to enable acceleration of business operations including strategic exploration activities and corporate opportunities.

– Power Metal working capital comprising solely cash and listed investments increases to circa £3million.

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

” The new shares issued in the Placing undertaken by the Company represents dilution of just 4.5% of current issued share capital and adds a material further cash resource into the Company at this opportunistic time.

Power Metal has maintained a strong working capital position throughout 2021, notwithstanding significant investment in exploration and corporate development. The Company is now at a key point where extensive exploration activities are underway and corporate activities are intensifying.

The Placing will allow the Company to expand its exploration budgets, accelerate corporate work and complete on a number of new initiatives.

The Power Metal board have been unable to participate in this Placing as we are actively involved in a number of initiatives that due to the possession of potentially price sensitive information would preclude us from buying the Company’s shares at this time.”

FINANCING DETAILS

– The Company has raised £1,050,000 through the issue of 60,000,000 new ordinary shares of 0.1p each (“Placing Shares”) at an issue price of 1.75p, the closing mid-market price on 12 November 2021.

– Each Placing Share will have an attaching warrant to subscribe for a further new ordinary share of 0.1p each (“Ordinary Share”) at an exercise price of 3.5p each with a two year term from the admission of the Placing Shares (“Placing Warrant”) creating 60,000,000 Placing Warrants.

– Should the Power Metal share price exceed a volume weighted average share price of 10p for ten trading days Power Metal may issue a written notice to Placing Warrant holders providing ten trading days to exercise the Placing Warrants and ten further trading days to make payment of exercise monies or the Placing Warrants may be cancelled.

– The Placing was undertaken by the Company’s Joint broker First Equity Limited.Power Metal will issue First Equity Limited 6,000,000 warrants to subscribe for Ordinary Shares on the same terms as the Placing Warrants.

ADMISSION AND TOTAL VOTING RIGHTS

Application will be made for the 60,000,000 Placing Shares to be admitted to trading on AIM which is expected to occur on or around 13 December 2021 (“Admission”). The Placing 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 1,403,339,987 ordinary shares of 0.1p each. This number will represent the total voting rights in the Company and may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

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 now has the following exploration completed with results awaited or exploration underway:

– Authier North Lithium Project(POW 100%)(Canada) – soil & rock sampling completed (laboratory assay results awaited)

– Athabasca Uranium (POW 100%) (Canada) – Phase I exploration completed (laboratory assay testing of samples collected, awaited)

– Tati Gold/Nickel Project (POW 100%) (Botswana) – reverse circulation drilling completed (field results, together laboratory assay results awaited)

– Molopo Farms Complex (Botswana) – further samples being tested for nickel sulphide and platinum group elements (“PGEs”) from diamond drill programme completed (laboratory assay results awaited)

– Ditau Project (Botswana) – preparatory exploration work underway on target I10 in preparation for planned drilling targeting rare earth elements and base metals

– Kalahari Copper Belt (Botswana) – results from ongoing exploration across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas in preparation for planned drilling of copper-silver targets

– Haneti Project (Botswana) – final preparations underway in preparation for planned deep diamond of nickel sulphide-PGE targets.

– Wallal Gold/Copper Project (Australia) – geophysics results from 2D seismic processing and passive seismic awaited

– Victoria Goldfields (Australia) – results from ongoing exploration across 848km2 of granted exploration licences including preparation work for planned drilling of gold targets


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