28
June 2024
Power Metal Resources plc ("POW", "Power
Metal" or the "Company")
Interim Results
Power Metal Resources plc
(AIM:POW, OTCQB:POWMF), the London-listed exploration
company with a global project portfolio, announces its unaudited
interim results for the six month period ended 31 March 2024 (the
"period").
Sean Wade, Chief Executive Officer of Power Metal
commented: "Over the past six months,
we have continued to make positive developments across our project
portfolio, showcasing its value potential. The numerous agreements
signed, and discussions carried out with potential investors and
joint venture partners, emphasise the strong position Power Metal
is in as it develops its projects, which focus on key commodities
in globally significant regions."
KEY DEVELOPMENTS IN THE HALF YEAR TO
31 MARCH 2024
- Raising of £1.3 million at a premium to the prevailing share
price, cornerstoned by UK-based high net worth investors and a
strategic Saudi Arabian investor;
- Following positive exploration work carried out at the Tati
Gold Project ("Tati"), located in Botswana, the Company recommenced
field operations at the project with six unique additional target
areas being identified for detailed soil sampling. The soil
sampling assay results confirmed the presence of three significant
gold-in-soil geochemical anomalies, proving further continuity
within the 8km-long gold trend at Tati. Of the 446 samples taken,
three returned greater than 500 parts per billion ("ppb") gold
("Au") and an impressive 29 samples returned 100ppb Au or
above;
- Radon gas sampling completed at the Tait Hill and Soaring Bay
projects, part of Power Metal's uranium portfolio located in and
around the prolific Athabasca Basin in Saskatchewan, Canada,
confirmed multiple significant uranium targets. Additionally, soil
geochemical sampling, carried out over the same targets, further
demonstrated significant uranium prospectivity and enabled
refinement of potential drill targets;
- Power Metal also undertook Unmanned Aerial Vehicle ("UAV")
magnetic geophysics surveys covering the Clearwater and Cook Lake
Projects which generated multiple high-priority targets for future
exploration;
- Disposal of Kavango Resources plc shares, raising £556,000.
Power Metal retains a 1% net smelter royalty return;
- High-level geophysical and geographical information
system-based desktop study completed at the Selta Project, operated
by First Development Resources plc, in which Power Metal holds a
58.59% interest. The study significantly expanded the existing
rare-earth element and lithium exploration target area and
generated new target areas;
- Signing of a non-binding Memorandum of Understanding ("MoU")
with the Ministry of Investment of the Kingdom of Saudi Arabia to
explore the possibility of joint collaboration efforts towards the
identification and realisation of high value-added investment
opportunities;
- Commencement of a diamond drilling programme at the Molopo
Farms Complex nickel and platinum group element ("PGE") Project
("Molopo Farms") in Botswana, targeting a steeply-dipping
high-priority conductor at target area T1-14;
- On behalf of the Company, Kalahari Key Mineral Exploration Pty
Ltd, received extension license documents from the Botswana
Department of Mines, for Prospecting Licence 310/2016 and
PL311/2026 at Molopo Farms, granting the Company the right to
prospect for metals for a two-year period;
- Acquisition of the 31.09km2 Richards Lake uranium property,
located in the Athabasca Basin, via direct mineral claim
staking;
- Signed Heads of Terms for the acquisition of a 75% interest in
GSA (Environmental) Limited, a privately owned UK-headquartered
engineering technology provider and process licensor, which
specialises in the extraction of strategic metals from 'secondary
sources' including power station ash, refinery waste, titanium
dioxide waste and spent catalysts, while also producing much more
environmentally friendly residue;
- Establishment of Power Arabia Limited to encompass all of
Power Metal's activities across the Arabia Gulf, with several
binding MoU's for potential joint ventures in negotiation
stages;
- Signing of Heads of Agreement to conditionally dispose of the
Company's entire 49.9% interest in New Ballarat Gold Corporation
plc which wholly owns Red Rock Australasia Pty Ltd, the local
operating company holding exploration interests in the Victoria
Goldfields, Australia and in South Australia, for consideration up
to £1.5 million potentially payable in cash, Red Rock Resources plc
ordinary shares and warrants; and
- Binding earn-in agreement signed with RIWAQ Al-Mawarid for
Mining ("RIWAQ"), a special purpose subsidiary of EV Metals Group
plc ("EVM") focused on the development of the Saudi supply chain
for critical raw materials from the exploration, mining and
processing of minerals and metals in the Kingdom of Saudi Arabia.
POW has the right to earn a 20% interest in RIWAQ's 15 tenements by
sole funding US$350,000 expenditure on the tenements within 12
months from date of execution of the Binding Agreement, with a
right to a further 10% by sole funding US$150,000 within six months
following earning of 20% interest.
KEY DEVELOPMENTS SINCE 31 MARCH
2024
- Granted approval to trade on the OTCQB Venture Market in the
US, which commenced on 10 April 2024;
- Successful intersection of the targeted steeply dipping
geophysical superconductor at Molopo Farms on 23 April
2024;
- Acquisition of 75% of the issued share capital of GSA
(Environmental) Limited on 20 May 2024;
- Conditional agreement by ASX listed Aruma Resources Limited
for the full acquisition of NHMHA, which includes
Power Metal's Wilan Project and additional
licences in Mt Isa region of Queensland, announced on 28 May 2024.
Power Metal owns 20% of NHMHA issued share capital and the
agreement provides Power Metal with exposure to uranium and copper
exploration potential on the ASX Markets;
- On 3 June 2024, Power Metal entered into a legally binding
subscription agreement with ACAM LP ("ACAM") for a £2 million
investment in Power Metal by way of a loan note with attaching
warrants. The Company also entered into an eight-week exclusivity
period and a non-binding term sheet with ACAM with the intention of
forming a uranium-focused joint venture involving Power Metal's
entire portfolio of uranium licences; and
- As announced on 13 March 2024, Power Metal entered into a
Heads of Terms with Red Rock Resources Plc ("RRR"), the local
operating company holding exploration interests in the Victoria
Goldfields, to sell its 49.9% shareholding in New Ballarat Gold
Corporation Plc ("NBGC"), which wholly owns Red Rock Australasia
Pty Limited ("RRAL"), in South Australia, for up to £1.5 million
payable in cash, RRR ordinary shares and RRR warrants, subject to
various conditions precedent being met. On 12 June 2024, the
conditions precedent of the transaction were either fulfilled or
waived. Accordingly, completion of the disposal of the Company's
49.9% interest in NGGC, was announced on 19 June 2024.
- On 19 June 2024, Power Metal announced that a share option
agreement ("Option" or the "Agreement") has been entered between
Power Metal, Tati Greenstone Resources PTY LTD ("TGR") a
company incorporated in Botswana held as a 100% owned
subsidiary of Power Metal, and Tuscan Holding PTY Ltd, ("Tuscan"),
a company incorporated in Botswana, (collectively the
"Parties"). Subject to exercise of the Option, Power Metal, through
TGR, will retain a 25% interest free carried to production in
Prospecting Licence 049/2022 (which covers the Cherished Hope
Mine) and from which it is intended that TGR will become a material
dividend paying entity from net cash flow generated from gold
production. Power Metal will retain the right to a 100%
interest in other prospecting licences held by TGR other than
PL049/2022.
- On 27 June 2024, the Company announced it completed a diamond
core drill hole, DDH1-14C, at Molopo Farms, to a depth of 832.6m.
Drilling successfully intersected the targeted steeply dipping
geophysical superconductor at the high priority Target Area T1-14.
Significant sulphur assays of up to 3.46% were identified alongside
a sample which returned anomalous nickel of 0.128%.
POWER METAL INTERESTS AT TODAY'S
DATE
The latest updated review of Power
Metal's business interests is provided in the Company's investor
presentation which may be accessed here:
https://www.powermetalresources.com/investors/presentation/
In addition, a single page Business
Overview is provided for investors through the following
link:
https://www.powermetalresources.com/company/
LATEST POSITION OF POWER METAL INTERESTS AND TARGETED
OBJECTIVES FOR 2024
Priority Exploration and
Potential Exploration Project Joint Ventures
Exploration
Interest
|
Latest Position & Forward
Plans
|
Athabasca
Uranium
Saskatchewan, Canada
(Uranium)
POW:
100%
|
Power Metal currently holds 16
properties covering a total area of 914.714. km2 within and surrounding the prolific
Athabasca Basin.
The discussions regarding the
proposed JV of Power Metal's entire uranium portfolio in and around
the Athabasca Basin area are underway with ACAM and continue in
line with the announced eight-week exclusivity period.
Various work programmes across the
portfolio are being defined and ongoing workstreams are being
completed and analysed.
|
Molopo Farms Complex
Project
Botswana
(Nickel -
Copper - Platinum Group Element)
POW:
87.71%
|
The cumulative exploration
programmes undertaken at Molopo Farms, and the commencement of the
diamond drilling programme, have demonstrated significant potential
for a major nickel - platinum group element discovery or
discoveries.
The successful intersection at the
high priority Target Area T1-14 confirms the presence of the
superconductor that was identified by multiple geophysical
surveys.
Significant sulphur assays of up to
3.46% were identified alongside a sample which returned anomalous
nickel of 0.128%.
|
Tati
Project
Botswana
(Gold -
Nickel)
POW:
100%
|
Following positive
exploration work six additional target areas were identified for
detailed soil sampling.
2024 geochemical soil sampling assay
results confirmed the presence of three significant gold-in-soil
geochemical anomalies of greater than 500ppb gold. Of the 446
samples collected, 29 samples returned assay results of 100ppb gold
or above.
The Cherish Hope Anomaly identified
in the geochemical soil sampling results represents a significant
extension zone trending southwest from the original Cherished Hope
historical mine workings. The two further anomalies show the
potential for a significantly larger anomalous gold-in-soil
footprint.
Commercial discussions regarding the
potential for small-scale mining at the Cherished Hope Gold Mine
are ongoing, in parallel with continuing exploration
work.
The Company entered into a Share
Option Agreement between Power Metal, Tati Greenstone Resources PTY
LTD, held as a 100% owned subsidiary of Power Metal, and Tuscan
Holding PTY Ltd. Subject to exercise of the Option, Power Metal,
through TGR, will retain a 25% interest free carried to production
in Prospecting Licence 049/2022 (which covers the Cherished Hope
Mine) and from which it is intended that TGR will become a material
dividend paying entity from net cash flow generated from gold
production. Power Metal will retain the right to a 100% interest in
other prospecting licences held by TGR.
|
North Wind
Project
North
America
(Lithium)
POW:
100%
|
A total of 389 soil geochemical
samples were taken following the exploration programme completed in
August 2023. Significantly, several pegmatites were
identified across North Wind, with five pegmatite samples collected
- which was a key ground exploration objective.
Assay testing of these samples is
ongoing with the results determining the next steps of the work
programme.
|
Investment Holdings and
Disposals Planned/Underway
Note: other project packages within
the Power Metal portfolio are also in earlier stages of disposal
and/or spin-out preparations in addition to those listed
below.
Business
Interest
|
Latest
Position
|
First Class Metals plc
(LON:FCM)
Schreiber-Hemlo, Ontario, Canada
(Gold -
Base Metals)
POW:
c.23.24%
|
FCM secured a listing on the London
Stock Exchange in late July 2022 with Power Metal holding an
interest, following its IPO financing, of 28.19% on listing (now
c.26% after dilution since listing).
|
Golden Metal Resources plc
(LON:GMET)
Nevada,
USA
Gold -
Base Metals
POW:
c.49.53%
|
GMET secured a listing on the London
Stock Exchange in late May 2023 with Power Metal holding an
interest, following its IPO financing, of 62.06%.
Exploration work is ongoing at
GMET's flagship Pilot Mountain Project with diamond drilling of key
targets underway. Acceleration of development is being considered
using the current Mineral Resource Estimate. On 25 June 2024 547.6m
of the planned 2,000m drilling programme had been completed with
tungsten mineralisation and the successful discovery of a porphyry
system identified. Assay testing results are pending and the
drilled holes have the potential to expand the deposit footprint
towards both the north and south.
Exploration at the Garfield Project,
to date, has included detailed geochemical sampling and follow up
analysis which highlighted the presence of both porphyry and
skarn-type mineralisation and alteration at the 'High-Grade Zone'.
Further to this, mapping, prospecting and rock sampling was
recently completed with results confirming the presence of
high-grade copper, silver and gold mineralisation, as well as
leading to the bedrock discovery of the Pamlico Gold Zone.
Following the strategic raise of £506,250 GMET is fully funded to
continue the ongoing geophysical work programme along with follow
up drilling.
On the 24 June 2024 GMET changed its
company name to Guardian Metal Resources PLC, with the stock ticker
remaining LON: GMET and OTCQB: GMTLF.
|
First Development Resources
plc ("FDR")
Western
Australia /Northern Territory
(Gold -
Copper - Rare Earth Elements - Uranium - Lithium)
POW:
c.59%
|
A high-level geophysical and
geographical information system-based desktop study has been
completed at the Selta Project.
The study significantly expanded the
existing rare-earth element and lithium exploration target area and
generated new target areas.
An exploration strategy for Selta is
being developed to systematically test the identified
targets.
FDR is
prepared for an IPO listing which, subject to a return to
normalised market conditions and final regulatory approvals, can be
undertaken at short notice.
|
New Ballarat Gold Corporation
plc ("NBGC")
Victoria,
Australia
(Gold)
POW:
0%
|
Power Metal signed a Heads of Terms
Agreement to conditionally dispose of the Company's entire 49.9%
interest in New Ballarat Gold Corporation to JV Partner, Red Rock
Resources, for consideration up to £1.5 million potentially payable
in cash, Red Rock Resources ordinary shares and warrants. On 12
June 2024, the conditions precedent of the transaction were either
fulfilled or waived. Accordingly, completion of the disposal of the
Company's 49.9% interest in NGGC, was announced on 19 June
2024.
|
ION Battery Resources Ltd
("ION")
Canada
(Lithium
& Graphite)
POW:
100%
|
ION holds 100% of the North Wind
project (transfer completed in May 2023) where lithium focused
exploration is currently underway, together with 100% of Doerksen
Bay graphite project and a project option to earn-in to the Authier
North/Duval East lithium project.
The next corporate steps for ION are
to be determined following a review of assay results from the North
Wind summer exploration programme.
|
New Horizon Metals Pty Ltd
("NHM")
Queensland and South Australia
(Copper -
Uranium - Gold)
POW:
20%
|
Power Metal holds a 20% interest in
NHM, which holds projects in Queensland and South Australia, and is
working towards a listing in the Australian capital
markets.
|
Power Arabia
Ltd
Kingdom
of Saudi Arabia
POW:
83%
|
Power Arabia Limited was established
to encompass all of Power Metal's activities across the Arabia
Gulf, with several binding MoU's for potential joint ventures in
negotiation stages.
Power Arabia is currently undergoing
a pre-IPO financing round to fund activities in the region, with a
view to a listing on the London capital markets in due
course.
Conversations are progressing with
investors, both from the Gulf and internationally, who have
indicated significant interest in a regionally-focused investment
vehicle.
A binding earn-in agreement has been
signed with RIWAQ Al-Mawarid for Mining, a special purpose
subsidiary of EV Metals Group plc, focused on the development of
the Saudi supply chain for critical raw materials from the
exploration, mining and processing of minerals and
metals.
RIWAQ is the sole beneficial owner
and sole registered holder of 15 tenements in the Balthaga Suite in
the south of the Arabian Shield, 13 are considered protective for
hard rock lithium, one for nickel sulphides, and one for a
copper/molybdenum porphyry system.
|
PROJECTS WITH NEXT STEPS
UNDER CONSIDERATION
Project
|
Latest Position & Key
Forward Events
|
Haneti
Project
Tanzania
(Polymetallic)
POW: 35%
(65% JV Partner Katoro Gold plc (LON:KAT))
|
Power Metal continues to liaise with
its partner to seek a new pathway for advancement of the Haneti
Project in Tanzania where the Company holds a 35%
interest.
|
Silver Peak
Project
British
Columbia, Canada
(Silver)
POW:
30%
|
The Company's 30% interest in the
Silver Peak project remains as previously stated and work is
ongoing with its partners on the next commercial steps.
|
FINANCIAL HIGHLIGHTS FOR THE HALF YEAR ENDED 31 MARCH
2024
- Loss for the period, attributable to owners of the parent of
£0.40 million (2023: £1.50 million), resulting in loss per share of
0.38 pence (2023: 1.78 pence);
- Financing undertaken in February 2024 raising £1.3
million;
- Total assets of £16.22 million at the period end (30 September
2023: £14.62 million); and
- Net assets of £15.38 million at the period end (30 September
2023: £13.99 million).
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
|
|
Sean Wade (Chief Executive
Officer)
|
+44 (0) 20 3778 1396
|
|
|
SP Angel Corporate Finance LLP
(Nomad and Joint Broker)
|
|
Ewan Leggat/Caroline Rowe
|
+44 (0) 20 3470 0470
|
|
|
Tamesis Partners LLP (Joint
Broker)
|
|
Richard Greenfield/Charlie Bendon
|
+44 (0) 20 3882 2868
|
|
|
|
|
BlytheRay (PR Advisors)
Tim Blythe/Megan Ray
|
+44 (0) 20 7138 3204
|
NOTES TO EDITORS
Power Metal Resources plc -
Background
Power Metal Resources
plc (AIM:POW, OTCQB:POWMF) is a London-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, Saudi Arabia 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.
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL
REPORT
1.
Reporting entity
Power Metal Resources plc is a
company domiciled in the United Kingdom. The unaudited consolidated
interim financial report for the period ended 31 March 2024
comprises the results of the Company and its subsidiaries (the
"Group"). The Group primarily is involved in the exploration
and exploitation of mineral resources in Africa, Australia, Canada
and the US.
2. Basis of
preparation
(a)
Statement of compliance
As permitted, IAS 34, 'Interim
Financial Reporting' has not been applied in this interim
report.
The financial information
presented in this interim report has been prepared using accounting
policies that are expected to be applied in the preparation of the
financial statements for the year ending 30 September
2024.
These policies are in accordance
with the recognition and measurement principles of International
Financial Reporting Standards, International Accounting Standards,
and Interpretations (collectively "IFRS") issued by the
International Accounting Standards Board as endorsed for use in the
United Kingdom, and these principles are disclosed in the Financial
Statements for the year ended 30 September 2023.
The interim results have been
prepared on a going concern basis. The financial information in
this interim report does not constitute statutory accounts within
the meaning of Section 435 of the Companies Act 2006. The 2024
interim financial report has not been audited.
The Annual Report and Financial
Statements for 2023 have been filed with the Registrar of
Companies. The Independent Auditors' Report on the Annual Report
and Financial Statement for 2023 was unqualified and did not
contain a statement under 498(2) or 498(3) of the Companies Act
2006.
The interim results were approved
by the Board of Directors on 26 June 2024.
(b)
Judgements and estimates
Preparing the interim financial
report requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and
the reported amounts of assets and liabilities, income, and
expense. Actual results may differ
from these estimates.
In preparing this consolidated
interim financial report, significant judgements made by management
in applying the Group's accounting policies and key sources of
estimation uncertainty were the same as those that applied to the
consolidated financial statements as at and for the year ended 30
September 2023.
(c)
Going concern
The interim financial report has
been prepared on a going concern basis. Although the Group's assets
are not generating revenues, the Directors believe, having
considered all available information, including the Company's
proven ability to raise further equity funds from its supportive
shareholder base, that the Group will have sufficient funds to meet
its expected committed and contractual expenditure for the
foreseeable future. Thus, the Directors continue to adopt the going
concern basis of accounting in preparing the interim financial
report for the period ended 31 March 2024.
3.
Significant accounting policies
The accounting policies applied by
the Group in this consolidated interim financial report are the
same as those applied by the Group in its consolidated financial
statements as at and for the year ended 30 September
2023.
4.
Earnings per share
Basic loss per share
The calculation of basic loss per
share is based on the loss attributable to ordinary shareholders of
the parent of £399,000 (2023: £1,495,000), and a weighted average
number of ordinary shares in issue of 106,064,426 (2023:
84,071,550).
The weighted average number
presented for the period ending 31 March 2023 above and the year
ending 30 September 2023 in the statement of comprehensive income
have been adjusted for the effect of a 20 to 1 share
consolidation.
5.
Issues of Equity
In February 2024, the Company
raised £1.3 million, before expenses, through the issue of
130,000,000 new ordinary shares of 0.1p each in the company at an
issue price of 1 pence per share.
In March 2024, the Company
consolidated its ordinary share capital resulting in every 20
existing ordinary shares of 0.1p each being consolidated into 1 new
ordinary share of 2p each. The number of shares prior to
consolidation was 2,213,468,340.
At the period end, the Company had
110,673,417 Ordinary Shares in issue (30 September 2023:
2,080,106,256).
At the date of this interim report,
the Company had 111,187,774 Ordinary Shares in issue.
**Ends**