POWER METAL RESOURCES PLC — Share Issue/Capital Change 2021

Dec 17, 2021

National Storage Mechanism | Additional information

RNS Number : 0557W

Power Metal Resources PLC

17 December 2021

17 December 2021

Power Metal Resources PLC

("Power Metal" or the "Company")

Warrant Update and Extension of Insider Warrants

Power Metal Resources plc (LON:POW) the London listed exploration company seeking large scale metal discoveries across its global project portfolio announces an update in respect of Company share warrants.

Update Regarding Exercise of Warrants Expiring December 2021

On 17 December 2019 the Company issued warrants (the "December 2019 Warrants") as part of a financing undertaken by the Company and as outlined below:

Description	Number of Warrants	Exercise Price
Financing Warrants	175,000,000	0.70p
Advisor Warrants	17,500,000	0.70p

All December 2019 Warrants carried a two-year life to expiry which ends today, 17 December 2021.

Power Metal can confirm that, save for 11,250,000 December 2019 Warrants held by current insiders, further details of which are provided below (the "Insider Warrants"), all December 2019 Warrants have been exercised.

The Company will be providing a breakdown of all other outstanding warrants and options in its upcoming quarterly report for the quarter ended 31 December 2021.

Warrant Exercise Proceeds and Working Capital Summary

In total the exercise of the December 2019 Warrants to date has raised an additional £1.27 million for the Company and in total all warrant exercises in 2020/2021 have raised circa £4.27 million. 

This inflow of warrant monies enabled the Company to aggressively build its business model in 2021 and secure the depth and quality of project interests.

Notwithstanding this heavily active phase in 2021 Power Metal has, at all times, maintained a robust working capital position. Currently working capital, defined for this purpose as only cash and listed investments, stands at circa £3.06 million.

It is important to note that the above working capital figure excludes all unlisted Power Metal assets, including corporate holdings and project level investment holdings ("Unlisted Assets").  Included within Unlisted Assets are the Company's pre-IPO interests in First Class Metals Ltd, Golden Metal Resources Ltd, First Development Resources Ltd and New Ballarat Gold Corporation PLC.

To assist shareholders' understanding of the financial position of the Company a breakdown of all the Company's unaudited assets will be provided in the quarterly report for the quarter ended 31 December 2021.

Extension of Insider Warrants

As at 17 December 2021 the following Insider Warrants remained outstanding:

Warrant Holder	Number of Warrants	Exercise Price
Paul Johnson	6,250,000	0.7p
Ed Shaw	5,000,000	0.7p

The Insider warrants were issued following participation in the December 2019 financing.

The Company is currently managing numerous exploration programmes and corporate activities across its portfolio and is engaged in various discussions relating to existing or potential business interests with external third parties.

As a result, the December 2019 Warrants held by Paul Johnson (Chief Executive Officer of Power Metal) and Ed Shaw (Non-executive Director of Power Metal) cannot be exercised on the expiry date of 17 December 2021 and may be extended under the warrant instrument, as outlined below.

Under the December 2019 Warrant instrument clause 2.3 provides that should any December 2019 Warrant holder be in the possession of price sensitive information and be thereby precluded from exercising warrant subscription rights, the exercise period shall be extended until 20 business days following the date on which the Warrant holder ceases to be an insider.

Given the level of ongoing operational activity there is a material likelihood that the receipt of price sensitive information could frequently restrict the ability of Paul Johnson and Ed Shaw to exercise the December 2019 warrants.

Reflecting the above the Company has extended the Insider Warrants expiry date by three months to a new expiry date of 17 March 2022.

Related Party Note

The extension of the Insider Warrants held by Paul Johnson and Ed Shaw as outlined above, have been treated as related party transactions for the purposes of AIM Rule 13.

Scott Richardson Brown being the independent Director for the purposes of the extension of the expiry date of the Insider Warrants held by Paul Johnson and Ed Shaw considers, having consulted with the Company's nominated adviser, SP Angel, that the extension of the warrant expiry date to 17 March 2022 to such related parties is fair and reasonable insofar as the Shareholders are concerned.

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
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Charlie Bouverat	+44 (0) 20 3470 0470
SI Capital Limited (Joint Broker)
Nick Emerson	+44 (0) 1483 413 500
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	+44 (0) 20 7330 1883

NOTES TO EDITORS

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 has exploration programmes completed or underway, with results awaited, as outlined below:

Project	Location	POW %	Work Completed or Underway	Results Awaited
Alamo Gold Project	USA	Earn-in to 75%	Excavation of multiple test pits and mapping & sampling.	Field results from on-site work programme.
Athabasca Uranium	Canada	100%	Phase I field exploration completed	Laboratory assay results of samples collected for uranium and REEs
Authier North Lithium	Canada	Earn-in to 100%	Soil & rock sampling completed	Laboratory assay results of samples collected
Ditau Project	Botswana	50%	Preparatory exploration work underway on target I10 leading to planned accelerated drilling targeting rare-earth elements and base metals	Field programme findings and defined drill targets for near term drilling.
Kalahari Copper Belt	Botswana	50%	Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas	Field programme findings and defined drill targets for near term drilling
Molopo Farms	Botswana	53%	Kavango Option to acquire an interest in local project holding company.  Option fee payable through defined work programme	Results from various work activities underway as part of the Kavango Option
Tati Gold/Nickel	Botswana	100%	Reverse circulation drill programme completed	Laboratory assay results awaited
Victoria Goldfields	Australia	49.9%	Ongoing exploration across 848km2 of granted exploration licences	Results from field programme including drill programme underway
Wallal Gold/Copper Project	Australia	83.33%1	Passive seismic and 2D seismic processing work programme completed	Results awaited

1 assuming all licences held by URE Metals Pty Limited are granted as outlined in the Company's announcement of 19.11.21 resulting in the issue of First Development Resources Ltd shares to URE vendors.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCEAFAXFEXFFFA