Aim-listed metals exploration and development company Power Metal Resources has raised £1-million to accelerate exploration across its portfolio of projects and to commercialise select project interests.
The funds raised will increase the available working capital (cash and listed financial instruments only) of the company to more than £1.5-million.
Power Metal is developing seven projects, including five battery metal projects in Africa.
The company is in discussions with the vendors of an option to acquire a right to earn-in to the Alamo gold project in Arizona, in the US. It hopes to conclude discussions at the earliest opportunity and, if successful, will look to implement an early exploration programme.
Further, the Victoria Goldfields joint venture (JV) project, in Australia, is 49.9% owned by Power Metal and 50.1% by Red Rock Resources. The JV will seek to finalise a project database confirming the extent of gold mineralisation and historical production across all ten licence application areas, and use the database to further enhance and target expeditious exploration plans in preparation for licence grant.
The partners will work proactively with land management advisers and Earth Resources Victoria to seek the grant of priority licence application areas. They will also continue to review the potential to list the joint venture company on a North American stock exchange.
"A strategic aim is to strengthen our working capital rapidly by crystallising value from some of our interests and building our company balance sheet. By doing so, we are aiming for financial self-sufficiency, which is a challenging target, but one we are striving for in earnest," says Power Metal CEO Paul Johnson.
Its two projects in Botswana include the Ditau rare earths project and the Molopo Farms Complex nickel, copper and platinum group metals (PGMs) project.
Power Metal and its technical advisers will seek to expedite the Ditau project due diligence which, if successful, will see the company holding a 51% interest and partner Kavango Resources holding 49%. On successful due diligence completion, the partners would work together to launch a follow-up exploration programme.
"Planning continues for drilling at the Molopo Farms Complex project. By expending $500 000 to undertake the drill programme, Power Metal will earn a 40% direct project interest (representing an effective economic interest of 50.96%, as Power Metal also owns 18.26% of Kalahari Key Mineral Exploration, which is the ultimate holding company of the project).
"Approval of the environmental management plan is the next step and when received will allow final preparations including contractor selection and mobilisation. Drill targets and holes are defined and the programme will seek the discovery of a major nickel sulphide deposit," the company says.
Further, Power Metal will continue to work with JV partner Katoro Gold in respect of operational plans for the Haneti nickel, PGMs, gold and lithium project, in Tanzania (25% held by Power Metal and 75% by Katoro Gold). Power Metal may increase its holding to 35% by paying Katoro Gold £25 000 in cash by August 31.
Following the confirmation and extension of the 6.8 km copper anomaly recently at its copper and cobalt Kisinka project, in the Democratic Republic of Congo, and positive X-ray fluorescence results indicating the presence of cobalt and copper, the company is awaiting receipt of assay results.
This will complete the exploration dataset from the first half of the 2020 programme and help drive the next steps, which are expected to involve geophysics and further pitting, leading to drilling of key targets at this Power Metal 70% owned project.
Additionally, its Cameroon cobalt and nickel project will see review work being accelerated to outline the next steps for the 100% owned project, including the potential to undertake additional exploration after the rainy season and/or commercialisation of Power Metal's 100% interest.
"The £1-million raised today, when added to our existing material working capital, changes the dynamic for Power Metal, enabling us to go forward boldly and invest strongly in the avenues we anticipate can create real value for the company and its shareholders," says Johnson.