Power Metal Resources PLC (AIM:POW) has hailed its global project portfolio and gave a positive outlook for junior resource companies in a commercial update.
“Over the past 4 years, Power Metal has assembled a unique and diverse global project portfolio which is ready for what I believe will be a longstanding and robust bull market for junior resource companies,” said the company's chief executive Paul Johnson in the update.
“After a long-sustained bear market for resource juniors, I believe that the sector recovery has now begun as demonstrated by rising metal prices and the evident growing demand for metals in most industrial settings and for investment security," he added.
The London-listed exploration company noted the initial public offering (IPO) of First Class Metals PLC (LSE:FCM), in which it holds a 27.91% stake, and the completion of the Kanye Resources PLC disposal to Kavango Resources PLC (LSE:KAV, OTC:KVGOF). Power Metal has a 9.85% stake in Kavango and a 1% net smelter return royalty across all Kanye properties.
“These two transactions alone brought additional listed securities into the Power Metal portfolio that are together currently worth c.£4.1mln,” noted Johnson.
He highlighted five other transactions that each have the potential to add to the Power Metal balance sheet and will complement the company’s ongoing exploration work at the Molopo Farms Complex and Tati Gold projects, both in Botswana, and its Athabasca Basin Uranium (CSE:NCLR, OTC:BURCF) interests in Canada.
Power Metal holds an 83.13% interest in Golden Metal Resources PLC, which is looking to complete IPO financing and, subject to regulatory approvals, the final listing steps in early 2023.
It also has a 62.12% holding in First Development Resources PLC, which it said is finalising a listing document in preparation for a planned IPO financing roadshow anticipated to start in early 2023.