TIDMPOW
RNS Number : 5086M
Power Metal Resources PLC
21 January 2021
21 January 2021
Power Metal Resources PLC
("Power Metal" or the "Company")
Acquisition of Canadian Gold Exploration Properties
Power Metal Resources PLC (LON:POW) the AIM listed metals
exploration and development company is pleased to announce the
Company has signed an agreement to acquire a 100% interest in a
package of three gold exploration projects located in the
prospective Hemlo North area of Ontario, Canada (together the
"Project").
The Project includes three contiguous exploration projects Roger
Lake, Olga Lake and Dotted East which together cover an area of
25.82km(2) centred approximately 29km north-east of Barrick Gold
Corporation's Hemlo Mine which has produced more than 21Moz of gold
to date(1) .
The Project map may be viewed on the Company's website through
the following link:
https://www.powermetalresources.com/Uploads/Hemlo_POW_Licences.png
Paul Johnson Chief Executive Officer of Power Metal Resources
plc commented:
"The acquisition of three exploration projects covering a
significant portion of prospective greenstone belt in mining and
investment friendly Ontario is a significant development for Power
Metals.
The acquisition comes at a highly competitive time when this
part of Canada is attracting a significant amount of investment
from Canadian listed junior explorers.
The Project has the potential for both gold and base metal
discoveries in an under explored area which offers Power Metal, as
a proactive exploration company, the potential to add significant
value through early stage exploration success."
The Project:
- The Project presents an early stage exploration opportunity
prospective for hosting both gold and base metal mineralisation,
situated over an underexplored part of the very prospective
Hemlo-Schreiber Greenstone Belt.
- The Project consists a total of 122 Single Cell Mining Claims
("Claims") being vended as three contiguous claim packages
(exploration projects); Roger Lake (50 Claims); Olga Lake (42
Claims); and Dotted East (30 Claims).
- The 122 claims cover a total area of 25.82km(2) and are valid
through to between 24 July 2022 to 12 December 2022 upon which they
can be renewed on an annual basis. To meet the requirements for
renewal the Project claims will require an aggregate work spend of
CAN$48,800 (circa GBP28,113) staged prior to the individual claim
renewal dates.
- Access into the area is good with a gravel road running
through the centre of the project leading south to Hemlo.
- The Project footprint is located directly adjacent, to west of
the Palladium One Mining Inc (TSX-V:PDM) Tyko Ni-Cu-PGE Project
where a 2020 drilling programme intersected massive sulphides
grading up to 7.5m @ 4.5% Ni, 2.9% Cu & 1.0g/t PGE from 5.3
meters down-hole(2) over a mineralised target striking 270m.
- Adjacent and east of the Panther Metals PLC (LSE:PALM) Dotted
Lake property where recent surface sampling confirmed high grade
gold (18.9g/t Au) at surface(3) .
The Acquisition Terms:
- The vendors of the Project (the "Vendors") are established
local prospectors who will continue to work with Power Metal in the
local management of the Project; the development and implementation
of exploration plans and the identification of new
opportunities.
- The cost of acquisition of the Project is CAD$120,000 (circa
GBP69,130) of which CAD$60,000 (circa GBP34,565) will be paid in
cash and CAD$60,000 through the issue to the Vendors of 1,152,233
new Ordinary Shares of 0.1p each in the Company at an issue price
of 3.0 pence per share ("Acquisition Shares").
- The cash costs of the acquisition will be funded from Power
Metal's existing Canadian Dollar cash account.
- The Vendors will retain a 2% net smelter royalty ("NSR") in
respect of the Exploration Properties. Power Metal may purchase 1%
in total of this NSR at any time by making a cash payment of
CAD$500,000 to the Vendors.
The Exploration Plan:
- Ongoing exploration spend is at the discretion of Power Metal
as the 100% owner of the Project.
- Preliminary exploration work planned for the project will
include both remote sensing data interpretation and ground-based
fieldwork with systematic soil sampling and geophysics expected to
yield defined targets for future drill testing.
- The Province of Ontario has an established mineral exploration
industry with a large number of local exploration contractors that
could be engaged to fulfill the planned work on a cost effective
basis.
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 1,152,233 Acquisition Shares to
be admitted to trading on AIM, which is expected to occur on or
around 28 January 2021 ("Admission"). The Acquisition Shares will
rank pari passu in all respects with the ordinary shares of the
Company currently traded on AIM.
Following Admission, the Company's issued share capital will
comprise 1,062,775,868 ordinary shares of 0.1p each. This number
will represent the total voting rights in the Company and may be
used by shareholders as the denominator for the calculation by
which they can determine if they are required to notify their
interest in, or a change to their interest in, the Company under
the Financial Conduct Authority's Disclosure and Transparency
Rules.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been
read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM,
FGS), who is a qualified geologist and acts as the Competent Person
under the AIM Rules - Note for Mining and Oil & Gas Companies.
Mr O'Reilly is a Principal consultant working for Mining Analyst
Consulting Ltd which has been retained by Power Metal Resources PLC
to provide technical support.
References:
Source 1: Barrick Gold Corporation
https://www.barrick.com/English/operations/hemlo/default.aspx
Source 2: Paladium One Mining Inc announcement
https://www.palladiumoneinc.com/assets/docs/news/2021-01-19-NR-PDM-B1D54LTo0P.pdf
Source 3: Panther Metals PLC announcement
https://polaris.brighterir.com/public/panther_metals/news/rns/story/x5ojz0r
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No.596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
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 and development company seeking a large scale metal
discovery.
The Company has a global portfolio of project interests
including precious metal exploration in North America and Australia
together with base and strategic metal exploration in Africa.
Project interests range from early stage greenfield exploration to
later stage prospects currently the subject of drill
programmes.
The Board and its team of advisors have expertise in project
generation, exploration and development and have identified an
opportunity to utilise the Company's position to become a leader in
the London market for investors wishing to gain exposure to
proactive global metals exploration.
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