REG - Power Metal Res. - Disposal of Victoria Goldfields JV Interest

Power Metal ResourcesAnnouncement

12/06/2024 15:45

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RNS Number : 1983S  Power Metal Resources PLC  12 June 2024

12 June 2024

 

Power Metal Resources PLC

("Power Metal" or the "Company")

Disposal of Victoria Goldfields Joint Venture Interest

Power Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London-listed
exploration company with a global project portfolio, is pleased to confirm
that further to the announcements dated 13 March 2024 (see here:
https://tinyurl.com/26ejenby (https://tinyurl.com/26ejenby) ) and 10 June 2024
(see here: https://tinyurl.com/yc6d9ekx (https://tinyurl.com/yc6d9ekx) ) the
conditions precedent of the transaction have now either been fulfilled or
waived. Accordingly, completion of the disposal of the Company's 49.9%
interest in New Ballarat Gold Corporation plc ("NBGC"), which wholly owns Red
Rock Australasia Pty Limited ("RRAL"), the local operating company holding
exploration interests in the Victoria Goldfields, Australia and in South
Australia, will occur within five days of 11 June 2024 (the "Completion").

 

Following Completion:

1)    Power Metal will transfer its holding in NBGC to Red Rock Resources
plc ("RRR");

2)    RRR will deliver £250,000 in convertible loan notes ("CLNs"), with
a conversion price equal to the price of any placement of new ordinary shares
of RRR raising proceeds of over £200,000.  Should conversion not be
undertaken within six months of 8(th) March 2024, the CLNs of £250,000 are
repayable immediately as cash; and

3)    RRR will deliver 166,666,667 new ordinary shares in RRR to Power
Metal, with accompanying warrants exerciseable at 0.25p per share in RRR.

A further announcement will be made following Completion.

 

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

"I'm pleased to confirm that Power Metal will be executing the disposal of its
interest in New Ballarat Gold Corporation plc to joint venture partner Red
Rock Resources plc in the coming days.

 

"The disposal enables the ownership of NBGC to be focused in one entity which
is the optimal holding structure for its continual development. This also
reflects the success of the streamlining process of the Power Metal portfolio,
with the NBGC interest being converted into a balance sheet investment holding
and additional incoming cash.

 

"For Power Metal, this disposal will further enable the Company to focus and
direct its managerial, operational and financial resources on retained high
value business interests and new opportunities.

 

"I would like to wish the RRR team all success with their plans for these
licences."

 

 

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/
(https://www.powermetalresources.com/)  or contact:

 Power Metal Resources plc
 Sean Wade (Chief Executive Officer)                                             +44 (0) 20 3778 1396

 SP Angel Corporate Finance (Nomad and Joint Broker)
 Ewan Leggat/Caroline Rowe                                                       +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

 BlytheRay (PR Advisors)

 Tim Blythe/Megan Ray                                                            +44 (0) 20 7138 3204

 

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.

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