Power Metal Resources PLC (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces it has completed a placing (the “Placing”) to raise gross proceeds for the Company of approximately £2.715 million through the conditional issue of 319,388,235 new ordinary shares of 0.1 pence each in the Company (“Placing Shares”) at a price of 0.85 pence per Placing Share (the “Placing Price”).
Each Placing Share has an attaching warrant to subscribe for one new ordinary share of 0.1 pence each in the Company (“Ordinary Shares”) at an exercise price of 2 pence with a 5-year term expiring 9 May 2028 (“Fundraising Warrants”).
As part of the Placing, the Company is pleased to announce that it has entered into a Subscription Agreement with Term Oil Inc., a company controlled by Rick Rule (“Term Oil”), pursuant to which Term Oil will participate in the Placing up to an amount of £1 million and not less than £0.5 million (“Subscription Agreement”).
The net proceeds of the Placing will be used to further the Company’s exploration activities and for general working capital purposes.
Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented:
“I am very pleased to be able to announce this capital raise and to reassure shareholders that we are now in a sustainable position to advance our exploration activities, most particularly in respect to our uranium portfolio. Moreover, I am delighted to welcome Rick Rule’s Term Oil vehicle to the register and the new shareholders who are joining us with his endorsement. This is not only a strong validation of our business model but also puts us on a sound footing to continue to deliver our goal of unlocking the significant inherent value in our portfolio.”
