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General mining & base metals

Power Metal considers options for uranium IPO on AIM

Power Metal Resources PLC (AIM:POW) chief executive Sean Wade said the board is considering options for the initial public offer of its uranium spin-off Uranium Energy Exploration (UEE) after receiving feedback from investors.

Wade, who is director of both, said: "The marketing process for the planned IPO of UEE continues to attract significant interest from a range of investors, including institutional investors, HNWs and retail investors in the UK and elsewhere, including a potential cornerstone investor.

"However, a number of significant potential strategic investors have indicated their preference for alternative deal structures which may include a different combination of assets, or an enlarged asset set with an enhanced business model.

"The board of Power Metal is therefore considering, from its point of view, all options and will revert in due course on the progress of those discussions and how this would affect the proposed IPO of UEE both in terms of timing and structure."

The company noted that there is no certainty that any transaction will be completed with its uranium interests.

In February, Power Metal added to its uranium property portfolio in the exploration hotspot of the Athabasca Basin area in Saskatchewan, Canada.

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