Power Metal Resources PLC (AIM:POW) has announced the conditional disposal of its 100%-owned E-12 Uranium Property, located immediately south of the prolific Athabasca Basin in Northern Saskatchewan, Canada, to Teathers Financial.
E-12, a 13-square kilometre property, is one of 12 uranium properties held by 102134984 Saskatchewan Ltd (Power Sask), a wholly-owned subsidiary of Power Metal Resources Canada Inc, which is, in turn, a wholly-owned subsidiary of Power Metal.
The consideration payable is £250,000 in Teathers Financial new ordinary shares of 0.1p at an issue price of 1.24114p per ordinary share and the retention of a 2% net smelter return (NSR) royalty over the property which can be bought back by Teathers Financial at any time prior to production for £750,000.
Teathers Financial is currently in the advanced stages of preparing for a change of business to become a uranium exploration-focused company and plans to undertake an initial public offering (IPO) on the London capital markets targeted for Q4 2022. Teathers is to be renamed Uranium Energy Exploration PLC.
On 8 August 2022, Power Metal announced the conditional disposal of its interest in 100%-owned Reitenbach uranium property to Teathers Financial.
Following completion of the E-12 disposal and the disposal of Reitenbach uranium property, Power Metal will hold 118,842,853 shares in Teathers Financial, or 73.75% of expected issued share capital prior to its planned IPO financing.
In a statement, Paul Johnson, chief executive officer of Power Metal, commented: "Upon its planned listing, Uranium Energy Exploration PLC will be the only Athabasca Basin-focused junior exploration company in the London capital markets and intends to explore and advance the Reitenbach and E-12 uranium properties at pace.
"Exploration work done so far across both properties has demonstrated extensive uranium prospectivity and the design of planned work programmes is well underway."
Power Metal Resources is an AIM-listed metals exploration company that 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 and strategic metal exploration in North America, Africa and Australia. Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.