Extractive Industries

Power Metal mulls assets merger for uranium investors

Power Metal Resources plc might combine its uranium licences with some of its other assets to secure an investment agreement.

Discussions: there is no certainty of completing any transaction with the company’s uranium interests (stock photo)

OPTIONS

The company, currently preparing Uranium Energy Exploration plc for listing, said it had seen interest from institutional, high-net worth and retail investors in the UK and elsewhere, “including a potential cornerstone investor”.

“However, a number of significant potential strategic investors have indicated their preference for alternative deal structures which may include a different combination of assets, or an enlarged asset set with an enhanced business model,” added chief executive Sean Wade.

“The board of Power Metal is therefore considering, from its point of view, all options and will revert in due course on the progress of those discussions and how this would affect the proposed IPO of UEE  both in terms of timing and structure.”

Mr Wade, a director of Power Metal and UEE, added that there was no certainty of completing any transaction with the company’s uranium interests.

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