Power Metal Resources plc (POW.L) Initiation Broker Research Note

Whilst most of the economy has been in pause mode for the last 3-months during the global state of emergency, including many exploration and mining companies.

Power Metal Resources (POW.L) management have been in pro-active mode adding new projects to a growing and increasingly prospective portfolio of interests that span not only power metal exposed commodities but also gold interests in many exploration target-rich localities.

In this initiation research note we look at each of POW’s projects, including its four core and most exciting interests at Molopo Farms Complex (Botswana), Victoria Goldfields (Australia), Kisinka (DRC) and Cobalt Blue Holdings (Cameroon) to understand the value behind the Group.

  • The Molopo Farms Complex (MFC) JV in Botswana represents POW’s flagship African project, upon which technical drilling over 2,500 metres is expected to start in the coming months, following environmental management plan approval and lifting of COVID-19 restrictions, to provide us with a greater understanding of its potential for nickel, copper and PGM mineralisation.
  • The blue-sky objective at MFC is to target massive sulphide deposits that could be similar in size to the world-class Voisey’s Bay Mine nickel deposit in Canada.
  • Botswana is a familiar jurisdiction to CEO Paul Johnson, where he helped develop the asset base of Metal Tiger, which subsequently attracted mid-tier miner acquisition interest for its JV. Investors will be hoping history can repeat itself in
    the same country with another successful discovery and exit event.
  • Elsewhere in Botswana, POW is running the slide rule over a planned rare earth element and base metal-prospective project at Ditau in a JV with AIM-listed Kavango Resources, which is headed up by executives with an excellent record of
    discovering, financing and achieving value for assets that subsequently attract the interest of majors in the billion-dollar-plus bracket range.
  • In recent weeks POW added to its gold interests through a JV in the Victoria Goldfields in Australia, with licence applications covering 1,835 sq. km, in a prolific gold mining district, near Ballarat Mine, which has produced 13m oz of
    gold to date, and also close to where ECR Minerals recently sold three gold projects for up to A$2.5m.
  • POW’s valuation is supported by a 10m share and 10m warrant holding in AIM-listed Katoro Gold, which we value at £0.37m at the current Katoro share price of 2.1p, representing 18% of POW’s current market cap. Earlier this year this
    percentage was as high as 35% when Katoro traded above 4p per share.

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Power Metal Resources plc (LON: POW) the AIM-listed metals exploration and development company is pleased to announce the Company’s joint broker First Equity Limited has published an Initiation Research Note (‘Note’) which may be viewed through the following link above.

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company exploring for the key metals used in power generation, transmission, storage and utilisation. The Board and team of advisors, who have proven expertise in exploration, mining and project generation, have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors to gain exposure to the power metal commodity suite, particularly cobalt, lithium, copper and nickel. 


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