10th Dec 2019 13:27
(Alliance News) - Power Metal Resources PLC on Tuesday said it has raised GBP700,000 to potentially exercise a earn-in right to the Molopo Farms Complex project in Botswana and advance other projects, including the Alamo gold project located in the US state of Arizona.
The Africa-focused metals exploration company said it has issued 175 million shares at 0.40 pence each through a share placing and subscription agreement.
The company's Chief Executive Paul Johnson and Chair Andrew Bell have each subscribed for 6.3 million shares in the fundraise. Following the subscription, Johnson will have a 4.5% interest and Bell will own 3.2% stake in Power Metal.
Power Metal shares in London were up 6.7% at 0.40p each on Tuesday afternoon.
The company plans to use GBP400,000 to potentially exercise its earn-in right in the Molopo project and the remaining proceeds to advance other African interests and work undertaken in relation to the Alamo project, which is currently under due diligence.
In May, Power Metal announced an acquisition of 18.3% stake in Kalahari Key Mineral Exploration Pty Ltd and a right to earn-in a 40% direct interest in Kalahari Key's Molopo project by spending USD500,000 by December 31, 2020.
The Molopo project consists of three licenses covering an area of 2,725 square kilometres that are considered prospective for nickel-copper-platinum group metals mineralisation.
By Tapan Panchal; [email protected]
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