Bad Economy Headlines in Newspapers

What it owns

Having changed its name last year to reflect a refocusing, Power Metal Resources PLC (LON:POW) has set about exploring new countries across Africa, and new metals to fulfil its nomenclature.

Previously known as African Battery Metals PLC, and before that Sula Iron & Gold PLC, the explorer has diversified into platinum group metals, copper, cobalt and nickel after discontinuing its earlier iron and gold exploration at Ferensola in Sierra Leone.

The Power Metal portfolio consists of a number of major assets:

  • Kisinka copper-cobalt project in the Democratic Republic of Congo in which a 7 kilometres zone anomalous for copper has been identified
  • A suite of cobalt-nickel projects in Cameroon, neighbouring the Nkamouna-Mada project, which is currently the largest cobalt project anywhere in the world outside of the Democratic Republic of Congo
  • A 25% stake in the Haneti project in Tanzania currently being worked up by Louis Coetzee’s Katoro Gold PLC (LON:KAT), with a right to increase its interest to 35% through the payment to Katoro Gold of £25,000 in cash by 15 May 2020
  • A nickel, platinum group metals and copper exploration complex in Botswana that’s wholly owned by Kalahari Key Metals in which Power Metal has 18.26% rights for an additional 40% direct interest through a payment of US$500,000 by end 2020.
  • The Alamo project in Arizona comprises some 340 acres see as being prospective for gold, with native gold nuggets observed near-surface in multiple locations.

How it’s doing

In April, Power Metal said that four drill targets have been selected for drilling at the Molopo Farms Complex project, which it owns jointly with Kalahari Key Minerals.

The decision to drill follows helicopter-borne electromagnetic survey, ground geophysics and a subsequent desktop review.

Initial drilling is expected to focus on the Chipo target group in the northern area of the Molopo Farms project

Earlier that month, the company said it had agreed to the conditional acquisition of a 51% interest in the Ditau project in Botswana for £150,000 from Kavango Resources PLC (LON:KAV).

The firm said that it will fund the acquisition through the issue of around 35.7mln new shares at a price of 0.42p each, nothing that the “highly prospective” Ditau project is targeting the discovery of commercial deposits of rare earth elements (REE).

It said due diligence for the acquisition will begin following the removal of coronavirus-related international travel and work restrictions, or 1 September, with Power Metals to become operator of the project following the purchase.

The group has also been given a boost by news that investee company Katoro Gold PLC (LON:KAT) has agreed to sell its Imweru gold project.

Katoro has struck a deal to offload Imweru to Lake Victoria Gold for a staged consideration of US$1mln and a 1.5% net smelter royalty on all future gold production from the project.

Power Metal owns a 4.38% stake in Katoro Gold, along with 10mln warrants and a 25% interest in Katoro’s Haneti polymetallic project in Tanzania.

Watch the interview