The timely capital boost comes with the company reaching an exciting phase of detailed exploration across its jam-packed portfolio of projects across the globe, including precious, base, and strategic metal exploration in North America, Africa, and Australia.
The company said the raising had attracted widespread investor interest and support at a critical time of extensive exploration and intensifying corporate activities.
“The new shares issued in the placing undertaken by the company represents a dilution of just 4.5 per cent of current issued share capital and adds a material further cash resource into the company at this opportunistic time,” chief executive Paul Johnson said.
“Power Metal has maintained a strong working capital position throughout 2021, notwithstanding significant investment in exploration and corporate development.”
The company has raised £1,050,000 by issuing 60,000,000 new ordinary shares of 0.1p each (“Placing Shares”) at an issue price of 1.75p, the closing mid-market price on 12 November 2021.
Each Placing Share will have an attaching warrant to subscribe for a further new ordinary share of 0.1p each (“Ordinary Share”) at an exercise price of 3.5p each with a two-year term from the admission of the Placing Shares (“Placing Warrant”), creating 60,000,000 Placing Warrants.
Power Metal Exploration Programmes Underway/Results Awaited
Authier North Lithium Project (POW 100 per cent) (Canada) – soil & rock sampling completed (laboratory assay results awaited)
Athabasca Uranium (POW 100pc) (Canada) – Phase I exploration completed (laboratory assay testing of samples collected, awaited)
Tati Gold/Nickel Project (POW 100pc) (Botswana) – reverse circulation drilling completed (field results, together with laboratory assay results awaited)
Molopo Farms Complex (Botswana) – further samples being tested for nickel sulphide and platinum group elements from diamond drill programme completed (laboratory assay results awaited)
Ditau Project (Botswana) – preparatory exploration work underway on target in preparation for planned drilling targeting rare earth elements and base metals
Kalahari Copper Belt (Botswana) – results from ongoing exploration across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas in preparation for planned drilling of copper-silver targets
Haneti Project (Botswana) – final preparations underway for the planned deep diamond of nickel sulphide-PGE targets.
Wallal Gold/Copper Project (Australia) – geophysics results from 2D seismic processing and passive seismic awaited
Victoria Goldfields (Australia) – results from ongoing exploration across 848 square kilometres of granted exploration licences, including preparation work for planned drilling of gold targets
POW’s London Stock Exchange-listed shares were trading today at 1.734p (5:53pm UTC+ 8 hours)