Power Metal Resources plc has conditionally sold its 100% owned Reitenbach uranium property east of the Athabasca Basin in Northern Saskatchewan, Canada.
TEATHERS FINANCIAL
Teathers Financial plc will buy Reitenbach which is one of Power Metal’s ten uranium properties.
The investment company was incorporated in the UK on 1 March 1907 under its former name of CA Sperati plc.
Companies House lists Teathers Financial as having three active directors: Kavango Resources chief executive Ben Turney; Mario Visconti a director of Kanye Resources plc which is a joint venture between Power Metal and Kavango; and Sean Wade.
Reitenbach’s £360,000 sale will be in the form of 98,700,000 Teathers Financial ordinary shares at a price of 0.35461p per share issued to Power Metal for a total value of £350,000.
Teathers Financial will also pay Power Metal £10,000 in cash.
Power Metal will retain a 2% net smelter return royalty across the property, 1% of which can be bought back by Teathers Financial at anytime prior to production for £750,000.
LISTING
The transaction is conditional on Teathers Financial securing a £125,000 initial pre-IPO financing to cover listing costs and admission to trading.
Power Metal expects to hold 40-55% of Teathers Financial issued share capital on listing during Q3 2022.
The company said that Teathers Financial was in the advance stages of changing the focus of its business to become a uranium exploration company.
On completion of the agreement and following the planned listing, Teathers Financial will begin exploration across Reitenbach and pay for Power Metal’s in-house technical expertise.
Chief executive Paul Johnson said that the sale of Reitenbach was another “crystallisation event” for Power Metal.
“With the refocusing of Teathers into a uranium exploration vehicle with Reitenbach as their flagship property, we believe the proposition will attract pre-IPO and IPO financing interest, and trade successfully as a listed vehicle.
“Outside of Reitenbach, we continue to own 100% of our remaining nine Athabasca properties, some of which we expect to explore ourselves and, given the level of interest in quality uranium projects, some may be the subject of further disposals.”
Power Metal’s book value of Reitenbach is £55,292 with no losses recorded in the year ended 30 September 2021.