Power Metal Resources plc has conditionally sold its second uranium property of E-12, immediately south of the Athabasca Basin in Northern Saskatchewan, Canada.
TEATHERS
The 13km2 property is under acquisition by Teathers Financial plc, subject to its listing by 31 December 2022.
Teathers will pay £250,000 in 20,142,853 new ordinary shares of 0.1p each at an issue price of 1.24114 pence, and a 2% net smelter return royalty (NSR) over the property.
The company can buy back 1% of the NSR at any time prior to production for £750,000.
The NSRs on Reitenbach and E-12 will be sold and transferred to Power Metal or its wholly owned nominee at a total value of CAD$50,000 on completion of the transaction.
Following the sales of E-12 and Reitenbach, Power Metal will hold 118,842,853 shares in Teathers, or 73.75% of expected issued share capital prior to its planned IPO financing.
The uranium-focused company previously met conditions for pre-IPO financing to cover costs for the Reitenbach property.
Since then, Teathers has identified “multiple significant uranium prospective anomalies” across Reitenbach including a ‘New Lake Geochem Zone’.
The company has also staked an additional 1,333 hectares (13.33km2) to cover the new prospective zone, increasing the size of Reitenbach.
Both properties are among Power Metal’s original twelve uranium properties.
Chief executive Paul Johnson added that prospectivity and the design of planned work programmes was well underway.
On listing, Teathers is due to be renamed as Uranium Energy Exploration plc (UEE).