Business
Partial Disposal of GMET Holding
Partial Disposal of GMET Holding.
About this update from Power Metal Resources Plc
[{"type":"text","content":"\n\n20 February 2025\nPower Metal Resources PLC\n(\"Power Metal\" or the \"Company\")\nPartial Disposal of GMET Holding\nPower Metal Resources PLC (AIM:POW, OTCQB:POWMF), the London listed exploration company with a global project portfolio, announces that further to its announcement of 11 February 2025, the Company has entered into a legally binding sale and purchase agreement (the \"SPA\") with UCAM Ltd (\"UCAM\") in connection with the partial disposal of its stake in Guardian Metal Resources PLC (\"GMET\").\nPursuant to the SPA, the Company has sold 29,758,334 shares in GMET, and warrants granted over 986,352 ordinary shares in GMET of £0.01 each, for a total cash consideration of £9,225,083.91 before costs. The proceeds will be used to redeem the £2 million loan note issued to ACAM LP on 10 June 2024, with accrued interest, and for general corporate purposes.\nUCAM is now GMET's largest shareholder with an interest of 23.45% of GMET's issued share capital. Power Metal retains 24,699,825 ordinary shares representing 19.46% of GMET's issued share capital, with a value of approximately £8.15 million based on GMET's closing share price on the AIM Market of the London Stock Exchange as at 19 February 2025. \nTamesis Partners LLP acted as the Company's Financial Adviser in relation to transaction.\nSean Wade, Chief Executive Officer of Power Metal Resources, commented:\n\"I am pleased to confirm completion of the previously announced partial sale of our GMET interest, realising over £9.2 million of cash proceeds and a return of nearly 10 times on this part of our original investment. GMET remains a core holding for Power Metal and we look forward to further returns from our investment.\nFollowing this transaction, our share price is now largely underpinned by the remaining value of our GMET stake and cash on hand, with significant upside for investors through exposure to our wider portfolio including projects in North America, Saudi Arabia, Oman, Australia and Africa.\"\n \nThis announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (\"MAR\"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.\nFor further informati...