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Power Metal Resources eyes significant upside from major exploration campaigns

Last updated: 08:16 13 Mar 2024 GMT, First published: 12:36 07 Sep 2023 BST

Snapshot

  • Power Metal to sell Victoria goldfields exploration projects to Red Rock
  • Small cap mining in 2024: Recovery or bust?
  • Power Metals can release substantial value from spin-offs suggests research house
  • Power Metal expands into sustainable metal extraction with GSAe deal; announces share consolidation
exploration

About the company

Power Metal Resources PLC is a metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.

The company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base, strategic and energy metal exploration in North America, Africa and Australia.

How it is doing

13 Mar 2024

Power Metal Resources PLC (AIM:POW) has agreed to sell its 49.9% stake in New Ballarat Gold Corporation (NBGC) to partner Red Rock Resources in a deal worth up to £1.5 million.

The company told investors it has signed a heads of terms agreement for the conditional disposal of NBGC, which holds exploration interests in the Victoria Goldfields, Australia, and in South Australia.

Power Metal will £250,000 followed by £250,000 after two months, and a further £250,000 after nine months. Subsequent payments are contingent and tied to project milestones.

"The transaction enables the ownership of NBGC to be focused in one entity which is the optimal holding structure for its continuing development,” Power Metal chief executive Sean Wade said in a statement.

29 Feb 2024

Power Metal Resources has made a major strategy shift into the toxic metals processing market with an agreement to buy 75% of GSA (Environmental).

Founded in 2003, GSAe specialises in metals extraction from secondary sources such as refinery residues, TiO2 waste, ash, and spent catalysts.

21 Feb 2024

Power Metal said there are signs that the cyclical downturn in the mineral resource exploration sector might be easing especially in gold and uranium where prices have risen strongly.

Gold and uranium feature heavily in Power Metal’s portfolio, with assay results from the drilling programmes in Athabasca (uranium) and sampling at Tati in Botswana (gold) due shortly, Power said alongside annual results for the year to end September 2023.

Insight: Small cap mining in 2024: Recovery or bust?

01 Jan 2024

The old adage that even in the worst of times the best of projects will win through has never been tested more severely.

The junior mining sector has for several years been undergoing a kind of medieval ordeal - a death by a thousand cuts - that hasn’t been quite the same as previous cyclical troughs.

What the brokers say

08 Feb 2022

First Equity Research has looked at four spin-offs planned by Power Metal Resources PLC (AIM:POW) this year and suggests if all go well there could be a six-fold increase in their value.

The four potential listees are First Class Metals (FCM), First Development Resources (FDR), Golden Metal Resources (GMR) and New Ballarat Gold Corporation (NBGC).

“Each listed company, with its own management team, will be a more focused operation, having greater access to capital and thereby an enhanced project acceleration ability,” said the note.

What management says

01 Mar 2024

Power Metal Resources PLC (AIM:POW) CEO Sean Wade speaks to Proactive's Stpehen Gunnion about the strategic acquisition of a 75% stake in GSA Environmental (GSAe), a company specialising in extracting critical metals from waste products like fly ash and heavy fuel oil ash.

The venture is particularly focused on residues from electricity generation and spent catalysts, promising to transform them into environmentally friendly residues while extracting valuable metals essential for the energy transition.

The move is seen as a departure from Power Metal's traditional focus on incubating early-stage mining opportunities, aiming instead to provide a sustainable revenue stream to reduce dependency on capital markets. Wade highlighted the complementary nature of this acquisition to Power Metal's focus on critical metals for energy transition and the added benefit of GSAe's ICP testing capability, which will reduce costs and time for sample testing.

Power Metal expands into sustainable metal extraction with GSAe deal;...

Power Metal Resources PLC (AIM:POW) CEO Sean Wade speaks to Proactive's Stpehen Gunnion about the strategic acquisition of a 75% stake in GSA Environmental (GSAe), a company specialising in extracting critical metals from waste products like fly ash and heavy fuel oil ash. The venture is...

2 weeks, 4 days ago