Power Metal Resources plc has raised £2.715 million via a placing, including a subscription by Term Oil Inc which is controlled by American investor Rick Rule.
DIRECTOR DEALING
The company has conditionally issued 319,388,235 new ordinary shares of 0.1 pence each in at a price of 0.85 pence per placing share.
Each placing share has an attached warrant to subscribe for one new ordinary share of 0.1 pence each in Power Metal at an exercise price of 2 pence with a five-year term, expiring 9 May 2028.
As part of the placing, the company entered into a subscription agreement for Term Oil to participate for up to £1 million and not less than £500,000.
Power Metal chief executive officer Sean Wade has committed to subscribe for 11,764,705 placing shares for approximately £100,000.
Following admission, the company’s issued share capital will comprise 2,058,421,913 ordinary shares of 0.1 pence, with voting rights.
USES
Power Metal will use the net proceeds for exploration activities and general working capital.