Power Metal Resources’ Share Holder Q&A with CEO, Sean Wade – Part 2


We have received many questions from investors about Power Metal Resources’ current status and ambitions. We have compiled them into a Q&A below and hope this is useful for those looking at Power Metal Resources.

Part 1

7. Will Golden Metal Resources receive any special funding from US government?

The Pilot Mountain project is Golden Metal’s flagship project and hosts a Mineral Resource Estimate (MRE) of 12.53Mt @ 0.27% WO3 for 34.3kt of contained tungsten metal with significant copper, silver and zinc credits, that significantly increase the tungsten equivalent grade.

Tungsten is classified as a strategic mineral within the 2022 USGS critical minerals list.

China accounts for >80% of the total global supply of Tungsten. In the wake of rising global instability and geopolitical tensions, what is at the forefront of many governments’ agenda is bolstering and securing their own supply chains surrounding strategic and battery metals.

Luckily for Golden Metal, the USA is a leader of this movement, deploying billions of dollars in grant monies to junior mining companies. As this narrative continues to develop, we believe what will become clear is that supply from countries such as Russia, China and potentially other nations will no longer be considered acceptable by many western countries.

From a demand side, there are many catalysts that are developing which many investors are not aware of which include increased demand from battery and industrial fields (incl. semiconductors and O&G drilling), and perhaps one of the more important recent developments – nuclear fusion. It is estimated that one large nuclear fusion plant could require as much tungsten than is currently consumed globally per annum – a remarkable statistic which points to the immense demand for tungsten that could be on the horizon from nuclear fusion.

Upon listing, we seek to be the recipient of USA government grant funding (e.g., from the DOD, DOM, DOC, etc). If successful, these funds (which would result in zero dilution to our existing shareholders) would allow us to fast-track development and exploration.

Considering the de-risking that has been already completed (advance metallurgy, baseline studies, scoping study) we have a major head start in being able to move this to a more advanced economic study and subsequently to making a construction decision. Most projects are staring down a 10-20-year development cycle – at Pilot Mountain the timescale could be a fraction of this.

For more information on the GMR portfolio please refer to a recent Q&A by Golden Metal Resources CEO Oliver Friesen: https://www.goldenmetalresources.com/investors/qa-with-oliver-friesen-ceo-golden-metal-resources/

8. Will future drill programmes/exploration work be given a deadline for expected results such as the one given (end of March) for the NBGC drill programme?

Historically we have always remained reluctant to publish dates and timelines. For exploration we are subject to matters out of our control such as dealing with assay labs in various countries; for corporate work (as we have experienced with the IPOs) it is equally not possible to control our timing. For this reason, we feel it is prudent not to publish dates unless we can be more definitive about timings.

9. Why should people invest in POW?

Power Metal Resources offers a unique proposition of exploration, spin-out IPOs, and investments in the junior resources space. We have built a business with multiple projects exploring for multiple commodities in safe jurisdictions. Our diverse portfolio and unique business model have the potential to transform the company and provide shareholder value through our investments and exploration interests.

The foundations of this business have been laid with a set of highly strategic assets targeting the creation of a mid-tier business. The recent changes in senior management are part of this plan. As the new CEO I believe I bring the right skills, capability, knowledge, and connections to deliver value to shareholders.

10. Why is it taking so long to hear anything from Molopo Farms?

See section 2 above.

11. Is drilling at Tati complete and has it lived up to your expectations?

12. It seems that we have gone from far too much news published too far too little. Can we strike a happy medium please?

Yes, that’s the aim. The company has been highly proactive over recent years assembling the portfolio and commencing the value crystallisation through spin-out IPOs and disposals. That generated a lot of newsflow, though the Company is now focused on a number of important next steps for exploration and continuing with the value generation from key disposals. As we progress each area there will be news updates and we expect to be entering a news rich period in Q2 2023.

13. What are you doing to conserve cash to ensure we are not raising money at these ridiculous levels?

This is a key factor for me and the business. In my view, as expressed when I joined the Company, currently for market reasons or otherwise, the inherent value in the Power Metal business is not reflected in its current market capitalisation. We need to resolve that.Power Metal, despite its diverse spread of interests, has the bulk of committed cash outflow behind it with investment in higher cost exploration programmes largely paid for (keeping them in good standing and building project date sets to increase valuations) across the board and with the main investment in potential spin out vehicles largely incurred or covered by separate pre-IPO financings.

Financing is key to any growing business and a source of concern for investors when weighing up the business model. Alongside our cash we have already a multi-million pound listed investment portfolio, much of which becomes tradable in July 2023.

Therefore, we are quite strong with regard to medium term capital, and we hope to add considerably to that with further disposals. However, your point re raising money at low price levels is well taken.

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