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Power Metal Resources Shares Surge 26% Following Uranium Exploration Advancements

14 December 2023 14:14

Power Metals Resources PLC (AIM:POW) is propelling forward with notable advancements in its uranium division through the strategic conditional disposal of its Canadian uranium assets, representing a significant development for the Company.

Conditional Disposal

In a series of announcements on August 8, 2022, and November 4, 2022, Power Metal detailed the conditional disposals of the Reitenbach and E-12 uranium properties into Teathers Financial plc, slated for a renaming to Uranium Energy Exploration plc (UEE).

Operational Advancements

Following these announcements, the Company has made significant progress in structuring the transaction and advancing the involved assets.

A noteworthy development is the successful completion of a pre-IPO financing, a crucial step in supporting the Company’s growth objectives.

Pre-IPO Financing Highlights

Teathers/UEE has conditionally raised approximately £421,500 through a Pre-IPO financing at 1.241135p per Teathers new ordinary share.

The completion of this financing is subject to approval from Teathers’ shareholders at a General Meeting, with arrangements currently in the final stages.

This capital injection positions Teathers/UEE to self-finance its operations, covering planned IPO advisory costs, corporate expenses, and various project expenditures.

Importantly, no warrants are automatically included in the financing, though participants may receive warrants on the same terms if offered as part of the planned IPO placing.

Strategic Outlook

With the pre-IPO financing successfully concluded, Teathers/UEE is now focused on executing further corporate initiatives in preparation for its planned IPO listing on the London capital markets in Q1/Q2 2024.

Based on the pre-IPO valuation and the planned conditional disposals of the Reitenbach and E-12 uranium properties, Power Metal is expected to retain a significant interest in the newly listed vehicle.

Future Outlook

Sean Wade, Chief Executive Officer of Power Metal Resources plc, expressed satisfaction with the progress towards the UEE IPO, acknowledging the challenging market conditions.

“I am very pleased to be able to report positive progress towards the UEE IPO. Current market conditions are not conducive to capital raising, and the fact that Teathers/UEE have outperformed expectations in this regard is further validation of investor interest in new uranium focused opportunities,” he stated.

Wade looks forward to the planned IPO, anticipating a dynamic period of exploration with a high-quality collection of uranium interests.

“I look forward to the planned IPO of UEE with a high quality collection of uranium interests and an exciting period of exploration ahead,” he said.

“Further updates will be provided to shareholders as material progress occurs.”

POW’s London Stock Exchange-listed share price has risen 26% and is currently trading at 0.80 Great British Pence (2.00pm UTC+ 8 hours).

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