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Power Metal's planned IPOs delayed

10th March 2023

By: Darren Parker

Creamer Media Contributing Editor Online

     

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Metals mining company Power Metal announced on March 10 that its planned initial public offerings (IPOs) are taking longer than expected.

In a strategic update, the company cited extensive preparatory work in the pre-IPO process, the need to complete work in all vehicles to enable immediate and proactive exploration campaigns upon listing, and market conditions during 2022, which resulted in a severe decline in investor sentiment in the junior resources sector, as reasons for the delay.

Preparations for the first three IPO vehicles have been completed, and the vehicles ready for listing have fully prepared proactive exploration plans in place. The company expects increased investor engagement and interest this year, and is therefore seeking to complete all transactions as quickly as possible, taking all necessary steps to accomplish this.

Power Metal said it would now focus on accelerating the completion of all remaining disposals and spin-out IPO listings for all relevant projects and vehicles. These include Power Metal's strategic interests in Golden Metal Resources, First Development Resources, Uranium Energy Exploration and New Ballarat Gold Corporation.

Golden Metal Resources, which holds the Pilot Mountain project, containing the largest-known critical tungsten metal mineral resource estimate in the US, and Golconda Summit, a gold exploration target for a Carlin-style gold discovery, is undertaking a planned listing in London.

Preparations for the IPO have been completed and the IPO financing is under way, Power Metals confirmed.

First Development Resources, which holds the Wallal project – hosting drill-ready magnetic bullseye targets, demonstrating geophysical similarities to the recent Havieron discovery made by Greatland Gold, and a large rare earths, uranium and lithium project 65 km northwest of the Nolans rare earths project held by Arafura Rare Earths – is also undertaking a planned listing in London.

Preparations for this IPO are almost complete, and the IPO financing is expected to begin shortly.

Power Metal has agreed to dispose of two uranium properties in the Athabasca basin to Teathers Financial, which is to be renamed Uranium Energy Exploration (UEE).

The disposals are conditional on the successful listing of UEE in London, creating a new uranium exploration-focused company holding the Reitenbach and E-12 properties.

Preparations for the IPO have also been completed, and the IPO financing is expected to start soon.

Power Metal holds 49.9% of joint venture (JV) company New Ballarat Gold Corporation, which holds a large footprint of granted exploration ground in the Victoria Goldfields of Australia, including two former high-grade working mines. Recent drilling at Berringa has confirmed visible gold in the core of the first three holes drilled, with assays awaited, the company said.

The intention of the JV partners is for New Ballarat to undertake a planned listing, with the technical results including assay of the current drill programme forming part of the technical data presented as part of that listing exercise.

BOARD CHANGES

Power Metal has also made a series of changes to its board of directors.

Sean Wade will become an executive board director and CEO with immediate effect and is charged with driving Power Metal to the next stage in its corporate growth.

Wade is an experienced corporate executive within the natural resources sector, having held senior roles in mining companies including Berkeley Energia, Pensana and Asia Resource Minerals.

He has worked on numerous transactions in the capital markets, including IPOs, secondary capital raising and mergers and acquisitions in a wide variety of different jurisdictions and exchanges. His network covers numerous capital providers, including institutional funds, family offices and private wealth.

Wade started his career at Cazenove & Co in 1993. In 2007, he was a founding shareholder in Liberum Capital.

Since 2012, he has worked in corporate business development and investor relations. He founded Scout Advisory in 2020, undertaking consultancy work with various listed and private companies in the resource exploration mining sector.

It is believed that his connections with internationally recognised mining companies and investment institutions will enable Power Metal to develop corporate and financial partnerships necessary to grow the business.

Power Metal has also said this network would help accelerate and cement the disposal pathways for certain interests, further enhancing the company's financial strength. 

Paul Johnson will step down as CEO with immediate effect to focus on family health matters and will resign from the board on March 17.

After stepping down, he will continue to work with the company and the corporate team on the managerial transition, continuing communication strategies and to accelerate the work behind crystallisation of value from the company's interests. This will include anticipated completion of disposal transactions and ongoing support for spin-out listings and disposals, where applicable.

Meanwhile, Scott Richardson Brown will assume the role of permanent nonexecutive chairperson. This reflects Brown's service continuity as interim nonexecutive chairperson since October 2021, and the leadership of the board and the company over that time.

Power Metal is also planning to appoint an FD to reflect the expansion of business activities going forward, as well as a technical director and an additional non-executive director to complete the board build-out.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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