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24/02/2024
Mining News

Power Metal Resources PLC Achieves £1.3 Million Funding Triumph

Power Metal Resources PLC has announced the successful raise of £1.3 million in funding cornerstoned by strategic investors of the Company in the United Kingdom and Saudi Arabia.

A Successful Financing

Supported by

The anount was raised through the issue of 130,000,000 new ordinary shares at an issue price of 1.0 pence per share, representing a premium price of approximately 3.09%.

The financing was raised by UK-based high net worth investors and a strategic Saudi Arabian investor, demonstrating Power Metal Resources‘ ability to secure direct funding from strategic investors and create a shareholder register with longer term and institutional holders.

The funds raised will be employed to accelerate the high impact exploration initiatives and corporate activities across the Company’s global portfolio.

Power Metals business model surrounds the objective to identify opportunities across an international portfolio, develop projects internally or through strategic joint ventures, until the projects becomes ready for disposal through outright sale or separate listing on a stock exchange.

This proven model is evidently successful, as witnessed through the growth of Golden Metal Resources PLC (AIM:GMET, OTCQB: GMTLF), whose share price has surged almost 70% within six months since its IPO on the AIM, nearly doubling its market capitalisation to £12.69 million.

Power Metal Resources hold a 61.03% stake in GMET, generating value for Power through its internal exploration and development efforts.

Exploration Endeavours

Power holds the largest listed uranium focused asset in London, which continues to perform well in tandem with increases to uranium spot price.

The Company’s uranium holdings in the Athabasca Basin, Saskatchewan, encompass seventeen wholly-owned properties, featuring projects with high prospects for uranium, intrusion-related uranium, and uraniferous pegmatites.

Power has conducted exploration on Tait Hill, Clearwater and Beaverlodge, yielding encouraging results and confirming historical prospectivity.

The Company also continues to progress its district-scale nickel and platinum group element discovery in southwestern Botswana, identifying the highest priority drill target to date within a geophysical conductor, highlighted through completed geophysical inversions, completed across the Molopo Farms Complex Project.

Following this discovery, Power Metals is gearing up to drill test this significant target.

Company Comments

Power Metal Resources’ Chief Executive Officer Sean Wade commented on the financing.

“Power Metal is highly active in its exploration and corporate activities and we expect to announce further important news from across our varied business interests in the near term,” he said.

“Corporately, we have been seeking to augment our shareholder register with strategic high net worth and institutional investors, to further strengthen the ownership of the Company and achieve a greater proportion of the Company’s shares in the hands of long term investors.”

“This process, started in May 2023 with the involvement of Rick Rule’s investing vehicle, continues with this announcement today, with the Financing cornerstoned by UK-based high net worth investors and, for the first time, a strategic Saudi Arabian investor.”

“Importantly, we are also demonstrating the Company’s ability to secure funds from new sources, giving our shareholders confidence in the ability of the Company to robustly finance its ambitious plans.”

 

Source: The Market Bull

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