Power Metal Resources PLC The Wilan Project Crystallisation Event

RNS Number : 9602P

Power Metal Resources PLC

28 May 2024

 

28 May 2024

Power Metal Resources PLC

("Power Metal" or the "Company")

The Wilan Project ("Wilan") Crystallisation Event

NHM Holdings (Australia) Pty Ltd ("NHMHA") acquired by Aruma Resources Limited (ASX: AAJ)

Power Metal Resources PLC (AIM:POW,OTCQB:POWMF), the London-listed exploration company seeking large-scale metal discoveries across its global project portfolio announced a Merger Agreement (the "Merger")  on 15 December 2022. The Merger included Power Metal's Wilan Project and additional licences in Mt Isa region of Queensland to form NHMHA with Power Metal owning 20% of NHMHA Issued Share Capital. NHMHA created a Uranium / Copper focused vehicle.

Following successful completion of due diligence, ASX listed Aruma Resources Limited ("Aruma") (ASX: AAJ) announced a conditional agreement for the acquisition of 100% of NHMHA on 27 May 2024, providing Power Metal with exposure to Uranium and Copper exploration potential on the ASX Markets.

Sean Wade, Chief Executive Officer of Power Metal Resources plc, commented: 

"I am very pleased to be able to report an important crystallisation event in respect of the NHMHA acquisition by Aruma Resources. This further demonstrates the value of our incubator model and how it serves to add value to shareholders. This transaction represents a continued streamlining of our portfolio and allows for concentration on our highest-value opportunities".

 

Extract from the ASX Announcement Dated 27 May 2024, Aruma commented: 

Aruma has executed a share acquisition agreement to acquire the Wilan IOCG-Uranium Project in the Olympic Dam precinct in South Australia, and the Fiery Creek Copper Project and the Bartola Copper Project in the Mt Isa region of Queensland from NHM Holdings (Australia) Pty Ltd (NMHA).

This is a Pivotal acquisition for Aruma. It will see the Company expand its focus into key high-demand commodities, copper and uranium, via a portfolio of high-potential exploration projects in two of Australia's pre-eminent, active mineral precincts.

Aruma has successfully completed due diligence over the new projects. Completion of the acquisition of NHMHA remains subject Aruma shareholder approval, to be sought at a shareholder meeting to be convened in the near future.

On completion of the acquisition, Aruma plans to commence targeted, systematic field work programs across the new projects to define priority drill targets, with the aim of progressively drill testing priority targets to unlock each project's full value proposition.

As consideration for the acquisition, Aruma proposes to issue the following to NHMHA shareholders:

·    26.5 million fully paid AAJ ordinary shares, which will be subject to a voluntary escrow period of 6 months from the date of issue;

·    24.5 million options each non-transferable and exercisable into one ordinary AAJ share for a nil exercise price upon Aruma securing program for environment protection and rehabilitation (PEPR) approval for drilling at the Wilan Project in South Australia, and obtaining any other necessary approvals to conduct drilling at the Wilan Project; and

·    28 million options each non-transferable and exercisable into one ordinary AAJ share for a nil exercise price upon AAJ reporting an aggregate drilling intercept (in one drill-hole) of 3m at >600ppm U308, or at least 20m at >0.8% Cu or metals equivalent at one of the new projects.

AAJ will also pay a 2% net smelter royalty to NHMHA shareholders over any minerals extracted and sold from the tenements.

ASX Announcement Link: https://announcements.asx.com.au/asxpdf/20240527/pdf/063ys0wnfvr63w.pdf

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc
Sean Wade (Chief Executive Officer)	[phone]
SP Angel Corporate Finance (Nomad and Joint Broker)
Ewan Leggat/Caroline Rowe	[phone]
SI Capital Limited (Joint Broker)
Nick Emerson	[phone]
First Equity Limited (Joint Broker)
David Cockbill/Jason Robertson	[phone]

 

BlytheRay (PR Advisors)	[phone]
Tim Blythe
Megan Ray

 

NOTES TO EDITORS

Power Metal Resources plc - Background

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.

 

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 [e-mail] 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

 

 

ACQKDLFLZELEBBL