Reitenbach Uranium Disposal - Progress Update

RNS Number : 7526Y

Power Metal Resources PLC

08 September 2022

 

8 September 2022

Power Metal Resources PLC

("Power Metal" or the "Company")

Reitenbach Uranium Disposal - Progress Update

Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces a progress update in respect of the conditional disposal of its Reintenbach uranium property ("Reintenbach" of the "Property") located east of the Athabasca Basin in Northern Saskatchewan, Canada.

The conditional disposal of Reitenbach to Teathers Financial Plc ("Teathers Financial" or "Teathers"), was announced on 8 August 2022 and may be viewed through the following link:

https://www.londonstockexchange.com/news-article/POW/disposal-of-reitenbach-uranium-property-canada/15575269

Teathers is an unlisted public company which is planning an initial public offering ("IPO") on the London capital markets.   Subject to the conditional terms of the agreed  Property Purchase Agreement  (the "Agreement") being met, the Power Metal group would be expected to hold an estimated 40-55% interest in the newly listed company.

HIGHLIGHTS

§ Teathers to be renamed Uranium Energy Exploration PLC for its planned listing on the London capital markets.

§ Preparations for planned listing progressing well and £125k pre-IPO fundraising round completed.

§ Multiple significant uranium prospective anomalies identified across the Property.

§ A significant 'New Lake Geochem Zone' has been identified which is demonstrated by high-

tenor uranium results from historical lake sediment geochemical sampling

§ Additional staking of 1,333 hectares (13.33Km²) completed to cover new prospective zone and increasing the size of the Property to 15,979 hectares (159.79km²).

Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented: 

"The planned disposal of the Reitenbach uranium Property into what will be Uranium Energy Exploration PLC is progressing well, with significant corporate and technical progress having been made in the last 4 weeks since the transaction was announced.

We are seeing uranium shares move sharply higher across UK, Canadian and Australian exchanges, reflecting the increasing recognition across the globe of an urgent need for the uptake in utilisation of nuclear power generation.

Regrettably the UK capital markets do not have many uranium focused shares, and there is limited opportunity for UK investors to participate in the uranium sector. This new planned listing will add another opportunity, and we understand the investor engagement thus far, has demonstrated there is a great deal of interest.

Should you wish to be kept informed of developments, please email [e-mail]."

FURTHER INFORMATION

Corporate:

-  Teathers Financial recently completed a £125,000 pre-IPO financing.

-  Teathers has secured the company name, Uranium Energy Exploration and ticker symbol UEE, in advance of its planned listing on the London capital markets in the near term.

-  Teathers has also secured the website holding page (https://uraniumenergyexploration.com) as well as the Twitter handle @uranium_energy as it continues to build out its online presence.

Reitenbach Technical:

Prior to the acquisition of the Property becoming unconditional, Power Metal's technical team have continued to undertake exploration work on the Property. The outcome of that work is outlined below.

-  Hyperspectral remote sensing analysis utilising Sentinel-2 satellite data on hydrogen and helium gas reflectance was recently obtained over the Reitenbach area. The results of this spectral survey highlighted the existence of several anomalies located across the Property.

-  These spectral results, combined with government and historical geophysical data, have allowed for the refinement of several high-priority targets for inspection during future work programmes, which includes a strong northeast-southwest trending anomaly in close proximity to the original 'Lake Geochem Zone' identified in 2021 by Power Metal.

-  A significant 'New Lake Geochem Zone' was also identified through further historical data digitisation, which includes lake sediment sample results up to 346ppm Uranium ("U") (with 6 results returning > 285ppm U) which represent very high tenor results for this type of geochemical sample. The combined Lake Geochem Zone now stretches for greater than 7km.

-  The spectral results also have highlighted a significant hydrogen and helium anomaly present along the regionally important Needle Falls Shear Zone.

-  As a result of the spectral results and the identification of the 'New Lake Geochem Zone', an additional 1,333 hectares have been claim staked (13.33 km²), bringing the total Property area under licence to 159.79 km². The new ground staked covers the extension of a northeast-southwest trending uranium-rich boulder train as well as spectral anomalies identified at the 'New Lake Geochem Zone'. All Reitenbach Property claims are being held by Power Metal, in trust for Teathers, pending completion.

A map highlighting the newly staked area and results from the 'New Lake Geochem Zone' be viewed on the Company's website through the following link:

https://www.powermetalresources.com/reitenbach-property-overview-sept-22/  

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

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/ or contact:

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

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.

Exploration Work Overview

Power Metal has internal exploration programmes completed or underway, with results awaited, as outlined in the table below.

Project	Location	Current POW %	Work Completed or Underway	Results Awaited
Athabasca Uranium	Canada	100%	Ground exploration programme underway at 3 properties.  Continuing data analysis across the property portfolio.	Results from ground exploration including spectrometer analysis, sampling and mapping.
Authier North Lithium	Canada	Earn-in to 100%	Property Evaluation Report completed.	Update covering exploration plans for target areas identified during the Evaluation.
Molopo Farms	Botswana	53%#	Final preparations for the launch of K1-6 conductor target drilling and MLEM surveys over T1-6, T1-14, T1-3 and T2-3 targets.	Commencement of T1-6 drill programme, and findings therefrom and results from MLEM surveys.
Tati Project	Botswana	100%	RC drilling and sampling of mine dumps complete.	Review of mine dumps sampling and results from RC drill programme.

^# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%

Exploration work programmes may also be underway within Power Metal investee companies and planned IPO vehicles where Power Metal has a material interest, the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required. 

These interests are summarised in the table below:

Company	Status/Operations	Link
First Class Metals PLC	Investment - POW 28.19% Exploration in the Schreiber-Hemlo region of Ontario, Canada	www.firstclassmetalsplc.com
First Development Resources PLC	Planned IPO - POW 62.12% Exploration in Western Australia and the Northern Territory of Australia	www.firstdevelopmentresources.com
Golden Metal Resources PLC	Planned IPO - POW 83.13% Exploration and development in Nevada, USA	www.goldenmetalresources.com
Kavango Resources PLC	Investment - POW 14.03% (subject to completion of Kanye Resources disposal announced 8.7.22) Exploration in Botswana	www.kavangoresources.com
New Ballarat Gold PLC	Planned IPO - POW 49.9% Exploration in the Victoria Goldfields of Australia	A new website is currently in development which will be found at www.newballaratgoldcorp.com . In the interim further information in respect of NBGC can be found at: https://www.powermetalresources.com/project/victoria-goldfields/ .
Uranium Energy Exploration PLC	Planned IPO - POW on listing estimated 40-55%	www.uraniumenergyexploration.com

 

END

 

 

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