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Power Metal Resources eyes significant upside from major exploration campaigns

Last updated: 04:25 26 Mar 2024 EDT, First published: 07:36 07 Sep 2023 EDT

Snapshot

  • Power Metal Resources strikes earn-in for Saudi lithium opportunity
  • Small cap mining in 2024: Recovery or bust?
  • Power Metals can release substantial value from spin-offs suggests research house
  • Power Metal expands into sustainable metal extraction with GSAe deal; announces share consolidation
exploration

About the company

Power Metal Resources PLC is a 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, strategic and energy metal exploration in North America, Africa and Australia.

How it is doing

26 Mar 2024

Power Metal Resources PLC (AIM:POW) has announced a new earn-in agreement with RIWAQ Al-Mawarid for an exploration venture in the Kingdom of Saudi Arabia for exploration.

The company secured an interest in the Balthaga Suite, an area located approximately 400 kilometres east of Jeddah, spanning 15 tenements covering a total area of 1487.11 square kilometres.

AIM-quoted Power Metal can earn 20% of the project by spending US$350,000 on exploration within the next 12 months, then a further 10% interest by investing a further US$150,000 over the subsequent six months.

The tenements are seen as prospective for hard rock lithium and nickel sulphides, as well as a potential copper/molybdenum porphyry system.

25 Mar 2024

Power Metal Resources PLC (AIM:POW) chief executive Sean Wade said the board is considering options for the initial public offer of its uranium spin-off Uranium Energy Exploration (UEE) after receiving feedback from investors. 

Wade, who is director of both, said: "The marketing process for the planned IPO of UEE continues to attract significant interest from a range of investors, including institutional investors, HNWs and retail investors in the UK and elsewhere, including a potential cornerstone investor.

13 Mar 2024

Power Metal Resources PLC (AIM:POW) has agreed to sell its 49.9% stake in New Ballarat Gold Corporation (NBGC) to partner Red Rock Resources in a deal worth up to £1.5 million.

The company told investors it has signed a heads of terms agreement for the conditional disposal of NBGC, which holds exploration interests in the Victoria Goldfields, Australia, and in South Australia.

Insight: Small cap mining in 2024: Recovery or bust?

01 Jan 2024

The old adage that even in the worst of times the best of projects will win through has never been tested more severely.

The junior mining sector has for several years been undergoing a kind of medieval ordeal - a death by a thousand cuts - that hasn’t been quite the same as previous cyclical troughs.

What the brokers say

08 Feb 2022

First Equity Research has looked at four spin-offs planned by Power Metal Resources PLC (AIM:POW) this year and suggests if all go well there could be a six-fold increase in their value.

The four potential listees are First Class Metals (FCM), First Development Resources (FDR), Golden Metal Resources (GMR) and New Ballarat Gold Corporation (NBGC).

“Each listed company, with its own management team, will be a more focused operation, having greater access to capital and thereby an enhanced project acceleration ability,” said the note.

What management says

01 Mar 2024

Power Metal Resources PLC (AIM:POW) CEO Sean Wade speaks to Proactive's Stpehen Gunnion about the strategic acquisition of a 75% stake in GSA Environmental (GSAe), a company specialising in extracting critical metals from waste products like fly ash and heavy fuel oil ash.

The venture is particularly focused on residues from electricity generation and spent catalysts, promising to transform them into environmentally friendly residues while extracting valuable metals essential for the energy transition.

The move is seen as a departure from Power Metal's traditional focus on incubating early-stage mining opportunities, aiming instead to provide a sustainable revenue stream to reduce dependency on capital markets. Wade highlighted the complementary nature of this acquisition to Power Metal's focus on critical metals for energy transition and the added benefit of GSAe's ICP testing capability, which will reduce costs and time for sample testing.

Red Rock Resources advancing towards a Canadian IPO with its Power Metal...

Red Rock Resources PLC (LON:RRR) Chairman Andrew Bell tells Proactive the group has begun the Canadian listing process for its joint venture with Power Metal Resources (LON:POW), Red Rock Australasia Pty Ltd.   Bell says the group is looking to list on the Toronto Stock Exchange Venture,...

on 1/3/21