Power Metal Resources PLC (LON: POW) the AIM listed metals exploration and development company is pleased to announce a commercial update in respect of Kalahari Key Mineral Exploration Pty Ltd ('Kalahari Key' or 'KKME') and the Molopo Farms Complex Project (the 'Project' or 'MFC Project').
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented: 'We are delighted to see the MFC Project structuring discussions progressing so efficiently and we continue to work with our partners to implement this as quickly as possible.
The decision to create a new UK plc to hold the remaining 60% interest in the MFC Project is an important step. We believe the planned UK listing will enable fuller recognition of the MFC Project's value, particularly given the notable exploration success already achieved and the level of interest being shown in the Project. We also welcome Richard's appointment as Newco CEO and note that as expected he is already pursuing matters with some determination.
For Power Metal we are pleased to support the listing of the new vehicle, which will enable our holding in Kalahari Key to have demonstrable value, further building our working capital with additional listed equity.
In the interim we continue to push on with technical work at the MFC project and further updates are anticipated in the near term.'
Background
As announced on 22 April 2021 Power Metal has earned-in to a 40% direct interest in the MFC Project, which is targeting prospective magmatic intrusion-hosted massive nickel sulphide and platinum-group element ('PGE') mineralisation in Botswana. The balancing 60% direct interest is held by Kalahari Key.
It is the intention of Power Metal to retain ownership of its 40% direct MFC Project interest at this time.
Proposed Listing of Newco
The intention is for Newco to list on a recognised stock exchange on the London capital markets during 2021 and for it to become a proactive resource exploration vehicle. Newco operations will principally include advancement of the MFC Project and the acquisition of additional opportunities, with a focus on Botswana.
Newco Management
A new Chief Executive Officer, Richard Nolan, has been appointed to manage Newco operations and the proposed listing process. Richard has over 20 years' international experience in banking and management including equity research, mergers & acquisitions and private equity. He has held board level positions with several natural resource focused companies both private and publicly listed.
Financing of Newco
Following settlement of any outstanding costs within Kalahari Key, the proceeds from a recent rights issue (raising circa US$259,000 and in which Power Metal took up its rights), when settled by participants, will be applied to initially fund Newco. Thereafter it is expected that Newco will seek additional funding through further private funding rounds or through an IPO on a recognised stock exchange.
Power Metal Interest in the MFC Project
Currently, before the restructuring above, Power Metal holds 18% of Kalahari Key and therefore with its 40% direct project interest has an overall effective economic interest in the MFC Project of 50.8%.
Following the restructuring and upon settlement of the Kalahari Key rights issue in which Power Metal has participated the Company will hold 21.7% of Newco, meaning its overall effective economic interest in the MFC Project will increase to 53.02%.
Contact:
Tel: +44 20 7583 8304
Email: info@powermetalresources.com
POWER METAL RESOURCES PLC 
