The Power Metal Resources PLC (LON: POW) share price fell 3.41% after revealing that it had completed a placing and subscription to raise £900,000 before expenses. The monies will fund its priority exploration projects and general working capital purposes.
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The slight drop in Power Metal’s share price reflected the discount offered to the participating shareholders, who paid 1.40p per share during the capital raise. It was impressive to see the company offer such a small discount.
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Power Metal said the funds would fund a comprehensive exploration programme at the Tati gold project, allowing it to accelerate preparations for the exploration activities at its strategic uranium portfolio in the Athabasca Basin region of Saskatchewan, Canada.
The company plans to conduct soil geochemistry, mechanised trenching, geophysics, and diamond and reverse circulation (RC) drilling at its Tati gold project. The work will help it examine near-surface gold mineralisation across a large proportion of the 8km gold-in-soil anomaly, which extends through the centre of the Tati licence footprint.
Power Metal also wants to initiate exploration programmes at some of its Athabasca uranium properties during spring and summer after snow melts. The work will be designed to build on the high-grade uranium rock samples discovered by the firm in 2022.
The company also intends to start working on properties within its portfolio which have not been exploited to date. After the Christmas break, the firm started its diamond drilling campaign at the Molopo Farms Complex project in Botswana.
Paul Johnson, Power Metal Resources’ CEO, commented: “Power Metal continues to drive its exploration portfolio, with drilling underway currently and with additional programmes now to be launched in the near term at the Tati gold project in Botswana and expedited exploration at the Athabasca Uranium portfolio in Saskatchewan, Canada.”
Adding:
“With multiple exploration work streams underway, Power Metal expects to release further updates to the market over the coming weeks and months as operational activities advance. In parallel, Power Metal continues to work on the various corporate initiatives targeting the generation of material value for the Company and its shareholders.”
*This is not investment advice.
Power Metal share price.
The Power Metal share price fell 3.41% to trade at 1.40p, from Friday’s closing price of 1.45p.
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