Power Metal - Completion of Strategic and Operational Review
Completion of Strategic and Operational Review
· Strategic and operational review, commenced in
· Power Metal Resources to remain focused on large scale metal discoveries with a focus on nickel, copper and cobalt;
· Company to continue proactive exploration activities in
I am pleased to be given the opportunity to take the role of Chief Executive Officer and with the support of the team, and shareholders, I intend to make a long-term commitment to building Power Metal Resources into one of the strongest exploration and development companies in
In line with this objective we have made a great start in recent months with exploration success in
The Company has also added new operational activities in
I would like to thank my fellow directors and our advisory team for their vital help and support so far in 2019 and also our shareholders, including those who have held for a long period and more recent holders. Junior resource exploration is high risk and at times holding shares can be a tortuous process, not least when sector conditions are very challenging.
With a fair wind I trust we will deliver the level of returns that justify your investment."
STRATEGIC AND OPERATIONAL REVIEW
· The key strategic objective of Power Metal Resources is to make large scale metal discoveries in the power metal commodities, principally nickel, copper and cobalt;
· At present the Company's operational interests are African based however the Company may acquire interests outside
· In addition, the present focus on the power metal commodities suite of nickel, copper and cobalt is expected to continue although the Company is open to other commodity opportunities should projects prove compelling;
· The Company is focused on large scale targets and the application of innovative and cost effective exploration techniques to control costs while maximising the chance of a discovery or discoveries;
· At present the Company has a diverse business model with multiple project interests and may in time focus the resources of the business more aggressively toward a project or projects within our portfolio where accelerated development is justified;
· The Company will seek to maintain an external dialogue with larger organisations with a view to project farm-in, joint venture or disposal, where such steps could materially improve the value of a project in the interest of shareholders.
Original Project Operations (held by the Company as at February 2019):
· Since February we have successfully relaunched active exploration operations in
· In the DRC the Company has identified a 6.8km copper anomaly running through the heart of its 70% owed Kisinka copper-cobalt license;
· Additional work programmes will be undertaken in
· The Company remains in discussions with the vendors of the Lizetta II chrome-nickel-cobalt project in the
· The KKME team in
· In Tanzania POW has acquired a 25% holding in the Haneti nickel project held in joint venture with Katoro Gold plc (LON:KAT) with a right to increase to 35% through a payment of
· A drill programme is to be undertaken over the two principal drill targets at Haneti at the heart of what is considered to be an 80 km potential mineralised strike, and supplementing this, work has identified the presence of lithium pegmatites;
Management and Administration:
· The Company has conducted a management and technical advisory review and as a result of this review
· In addition, recognising the success of exploration activities to date and new acquisitions, the Company recognises the need to add additional technical capabilities at senior management and consultancy level;
· Otherwise we are generally pleased with the support provided by our advisors and consultants to the Company and have established a cost effective and disciplined system of business administration.
· Following the restructuring and refinancing the initial financial focus of the Company was the completion of Audited Results for the year ended
· In addition, Interim Results for the half year ended
· Following completion of the refinancing in
· The Company has no material debt and a secure working capital position.
Marketing and Communications:
· The Company implemented a name change from
· A complete overhaul of the Company's website has now been undertaken and a new corporate presentation prepared for the website;
· Various initiatives have been developed and more will be undertaken to increase awareness of the Company's value proposition.
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:
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+44 (0) 7766 465 617
SP Angel Corporate Finance (Nomad and Joint Broker)
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+44 (0) 20 3470 0470
Notes to Editors:
This information is provided by RNS, the news service of the
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Market Cap: £2 m
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