Power Metal Resources PLC (AIM:POW) said it has completed a placing and subscription to raise £900,000 before expenses through the issue of 64mln new shares at a price of 1.4p each, with additional warrants.
The company said the money will be used for the advancement of priority exploration projects and for general working capital.
In particular, the new money will go towards a comprehensive exploration programme at the Tati gold project and to accelerating preparations for exploration at the strategic uranium portfolio in the Athabasca Basin region of Saskatchewan, Canada.
At Tati, Power Metal's exploration plans include soil geochemistry, geophysics, mechanised trenching, reverse circulation and diamond drilling. This work will examine near-surface gold mineralisation across a far larger proportion of the eight-kilometre gold-in-soil anomaly which extends through the centre of the Tati licence footprint and test for gold mineralisation at depth.
At Athabasca, the work programmes will be designed to follow up on high-grade uranium rock sample results returned during the 2022 campaigns, as well as inaugural work programmes at other properties in the portfolio which have not been worked by Power Metal to date.
Meanwhile, the company noted, diamond drilling has recommenced at the Molopo Farms Complex project in Botswana after the Christmas break and specifically at drillhole DDH2-3A into target area T2-3A.
In addition, at the company's Victoria Goldfields joint venture a diamond drill programme is underway targeting extensions of the former high-grade working Berringa gold mine.
"Power Metal continues to drive its exploration portfolio, with drilling underway currently and with additional programmes now to be launched in the near term at the Tati gold project in Botswana and expedited exploration at the Athabasca Uranium portfolio in Saskatchewan, Canada,” said Paul Johnson, chief executive of Power Metal Resources in a statement.