Power Metal Resources announced its future strategy was to make one or more major metal discoveries and work towards financial independence.
ASSETS
The company, which focuses on cobalt, copper, gold, lithium, nickel and PGMs, recently raised £1 million taking its total assets to £3.04 million.
Power Metal is involved in five main projects and two additional projects under due diligence (UDD) in Africa, Australia, and the United States.
Projects include Alamo gold in Arizona, USA (UDD); Victoria gold fields JV, Australia; Ditau Camp rare earths (UDD) and Molopo Farms Complex nickel-copper-PGMs both in Botswana; cobalt, nickel (100% owned) in Cameroon; Kisinka copper-cobalt in DRC; and Haneti nickel-PGMs-gold-lithium in Tanzania.
The company added that it aimed push its interests “more innovatively and aggressively.”
DIVERSIFICATION
Chief executive Paul Johnson said he wanted to build a diversified business which would become financially self-sufficient instead of depending on market financings.
“It has not been easy building our diversified project portfolio during the challenging junior resource sector conditions of the last 18 months, but it may not have been possible but for those conditions that meant excellent opportunities remained available.
“So now we find ourselves with a diverse and exciting portfolio of project interests, and with the support of shareholders and investors in the recent financing, a considerable working capital position with which to drive forward those interests.
“If we are fortunate in making a major discovery in just one of our projects, we could create significant value for our shareholders.”
STRATEGY
The company intends to build its working capital by “adopting a dual approach of taking a position in project holding companies alongside direct project participation.”
“The aim is that successful project development will drive the value of the ultimate holding company in which Power Metal has a stake, driving the value of our investment in that company higher,” added Mr Johnson.
“The recent financing has enabled this option to be utilised for further potential transactions should opportunities arise.”
Power Metal has also created an internal fund for investments in other junior opportunities, but said it would only use a maximum total of £75,000, representing less than 5% the company’s current working capital.