Power Metal Resources plc said its subsidiary First Development Resources Ltd (FDR) had raised £1,125,000 ahead of planned listing in Q3 2022 on the London capital markets.
FDR
FDR is focused on gold-copper, uranium-rare earth element and potential lithium targets in Western Australia’s Paterson Province and the Northern Territory.
Money raised will allow FDR to self-finance its operations including IPO listing advisory costs, corporate expenses and project expenditures.
FINANCING
The pre-IPO financing was raised through the issue of 16,866,566 new FDR ordinary shares of 1 pence each at a price of 6.67p, representing 27.14% of the company’s issued share capital.
Power Metal has subscribed £75,000 for 1,124,437 FDR ordinary shares and will hold 38,605,696 FDR shares, representing 62.12% of FDR.
Chief executive Paul Johnson has subscribed for £50,000 (749,625 FDR shares).
Power Metal said that the current valuation of First Development will be £4.125 million, and Power Metal’s 62.12% holding will be valued at circa £2.562m.
OTHER LISTINGS
In addition to FDR, Power Metal has two other project packages to become independent with their own management and financing.
First Class Metals (36%) which holds the Schreiber – Hemlo interests in Ontario is planned to list this quarter.
Golden Metal Resources plc focused on exploration and development interests in Nevada, USA, is currently 83.13% Power Metal owned, and also due to list this quarter.
Power Metal’s other potential spin-out listing is the Victorian gold fields (49.9%) joint venture with Red Rock Resources plc (50.1%), which is held through New Ballarat Gold Corporation plc.