16th Feb 2021 17:56
Power Metal Resources PLC - metal exploration and development company - Says working capital including cash and listed investments amounted to around GBP3.0 million as at February 12. Company adds that it has no debt and is either on track or ahead of schedule with project funding requirements.
"With extensive exploration now underway we are also undertaking corporate work that we expect will see some of the Power Metal interests spun-out into their own vehicles listed on recognised stock exchanges in North America and the UK. This will help us to organically build our working capital by exchanging certain project interests for a blend of shares and warrants in the listed entities, and various project level financial interests such as royalties in spun out projects," says Chief Executive Paul Johnson.
He adds: "Alongside building corporate working capital, and dependent on the quantum of any proposed spin out transactions the company may wish to undertake distributions to shareholders. To enable distributions to occur the company must take certain preparatory steps."
This includes a capital reduction process - a "standard and largely administrative process" that will not change the number of ordinary shares in issue - which first requires the approval of shareholders at a general meeting which the company intends to undertake in due course. Power Metals also has to secure approval from the High Court of England and Wales.
"Overall, this is a modest cost exercise and the Power Metal board consider it should be undertaken to put the company in a state of preparedness for any potential future shareholder distributions. The taking of these measures does not imply that the company intends to make such distributions in the near future," company cautions.
Current stock price: 2.88 pence; up 5.1% on Tuesday
Year-to-date change: up 4.7%
By Lucy Heming;Â [email protected]
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